Mintech Rewards Generator

The Mintech Rewards Generator is the mechanism that bridges the network's fiat telecom revenue into the blockchain-based MNTx reward model. It is the component that converts real-world commercial activity into token-based value distribution.

Every call terminated through Minutes Network generates fiat revenue. The Rewards Generator takes 100% of the net revenue from each epoch (the monthly cycle running from the 25th to the 25th) and executes algorithmic purchases of MNTx on the open market. These are not manual buybacks or discretionary treasury operations. The process is automated and executed via smart contracts with no manual intervention.

Once MNTx has been purchased, the Rewards Generator distributes the tokens across the four reward pools:

· 10% to Node Operators (undiluted)

· 60% to Node Stakers (subject to an algorithmic burn)

· 15% to Network Users (split equally between callers and receivers)

· 15% to the Developer for continued development.

The Rewards Generator also handles the algorithmic burn calculation applied to the staker pool. The burn rate is determined by the proportion of circulating MNTx that is staked across the node network. As staking participation increases, the burn dynamics adjust accordingly, affecting the volume of tokens distributed versus burned within each epoch.

The scale of the Rewards Generator's output is directly tied to the performance of the network's growth engines. More carrier traffic, higher margins from LDI license routes, increased revenue capture through the Jingle Plug-In, and additional service fees from Unity all feed into the same revenue pool that the Rewards Generator processes each month. As the network scales, the volume of MNTx flowing through the Rewards Generator grows in proportion.

For Switch and Validation Node Operators and stakers, the Rewards Generator is where telecom activity becomes token value. It is the mechanism that ensures the reward cycle is tied to real operational revenue rather than inflation, emissions schedules, or speculative activity.