Whitepaper ​

Proof Of Demand ​

The Canxium blockchain offers a pioneering approach to supply management, designed to address the issues of sudden inflation and deflation that many cryptocurrencies face. Through a demand-driven supply mechanism, Canxium redefines how a cryptocurrency’s supply is determined. Unlike the traditional fixed or predetermined supply models, Canxium’s supply dynamically adjusts in response to market demand. This innovative approach supports greater stability, enhancing both the value and utility of Canxium, which encourages broader adoption and a more resilient ecosystem. Traditional cryptocurrencies often struggle with price volatility, impacting user confidence and stability. Canxium’s approach tackles these challenges while upholding transparency and security across its blockchain ecosystem.

At the heart of this mechanism is a principle of equilibrium: as demand for Canxium rises, its value increases, attracting more miners who contribute computational power to the network. This increase in computational power leads to the creation of additional CAU to match market growth. Conversely, when demand decreases, the system scales down the production of new coins, controlling inflation and helping stabilize the currency’s value.

Mechanism ​

Canxium’s unique supply model and stability are made possible through its variable mining rewards. Unlike traditional cryptocurrencies with fixed mining rewards, Canxium’s mining rewards fluctuate with demand. The mining reward is directly linked to mining difficulty - when demand grows, more miners join the network, causing total mining difficulty to rise, which in turn increases the total mining reward, thereby expanding CAU supply. When demand falls, the opposite occurs: total difficulty decreases, reducing rewards and tightening the supply.

Variable Mining Reward Structure: The mining reward for Canxium adjusts dynamically, begins at 4,250 Wei per unit of difficulty and gradually decreases over two years, reaching 250 Wei per hash, where it remains permanently. This setup ensures that the reward rate adapts to changes in mining difficulty.

Examples: If the total mining difficulty is 0.1 PH, the mining reward will be 0.425 CAU:

0.1 PH = 100,000,000,000,000 × 4,250 = 0.425 CAU

If total mining difficulty is 1 PH, the mining reward will be 4.25 CAU:

1 PH = 1,000,000,000,000,000 × 4,250 = 4.25 CAU

Advantages ​

Decentralized Supply: The Canxium supply is not centrally controlled; it’s governed by the network’s demand, ensuring a fair and responsive supply model.

Market Equilibrium: The quantity of CAU generated aligns with market demand, stabilizing production costs relative to mining hardware and electricity expenses.

Reduced Price Volatility: With a flexible mining reward, Canxium can better moderate price fluctuations, providing a more reliable medium of exchange.

Conclusion ​

Canxium’s demand-driven supply control mechanism addresses one of the fundamental challenges of cryptocurrency - extreme price volatility. By tying supply to demand, Canxium offers a more stable store of value, fostering adoption among users and businesses that prioritize stability within the blockchain ecosystem.