# RecycleFarm Tokenomics

### Consensus Mechanism

RecycleFarm's ecosystem is designed to create an efficient, resilient, and decentralized platform that promotes saving the Earth. RecycleFarm fosters a sustainable infrastructure that rewards users for their contributions to environmental sustainability. The incentive mechanism transitions through two distinct stages: Proof of Action (PoA) and Proof of Impact (PoI). These stages ensure that users are rewarded for their contributions to the network.

### Reward Mechanism Design

RecycleFarm rewards users immediately upon verification of Earth Saving Activities with ESA Points and ESA Credit. These rewards are granted as soon as an ESA activity is confirmed, providing instant recognition and motivation for users to engage in sustainable practices. The conversion of ESA Points and ESA Credit into $RFRM tokens is planned for the future and is currently to be announced (TBA).

### Data Collection and Verification

RecycleFarm-connected devices and users report valid data regarding their Earth Saving Activities at regular intervals. This data is verified to ensure its authenticity and reliability. Once verified, rewards are instantly settled in ESA Points and ESA Credit, ensuring transparency and fairness in user compensation.

### Proof of Impact (PoI)

**Objective:** Calculate the carbon emissions reduction achieved through Earth Saving Activities.

**Mechanism:**

* Users' Earth Saving Activities are assessed to determine the actual reduction in carbon emissions they achieve.
* This includes tracking actions such as completing ESA missions and using ECO-DePIN SMART devices.
* The carbon reduction impact is quantified and used to provide incentives.

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&#x20;We are currently in the process of restructuring our tokenomics to reflect current market trends and directions. We will shortly be announcing the new version 2 of our tokenomics, which will reflect these updates.
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