1️⃣ Background and Vision
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2️⃣ Core Philosophy
Universal Platform: Anyone can develop, deploy, and run smart contracts on Ethereum.
Decentralized Computer: The Ethereum Virtual Machine (EVM) ensures all nodes execute the same logic, guaranteeing consistent results.
Smart Contracts: Self-executing code that triggers upon defined conditions, requiring no intermediaries.
3️⃣ Technical Mechanisms
Account Model: Includes external accounts and contract accounts.
Gas Mechanism: Prevents resource abuse; all operations require payment of Gas fees.
State Transition: Each transaction updates the global state, forming the blockchain's "world ledger."
EVM Execution: Runs smart contracts through stack, memory, and storage, achieving persistent logic.
4️⃣ Application Ecosystem
Ethereum is the infrastructure for decentralized applications:
Financial: DeFi, stablecoins, decentralized exchanges.
Non-Financial: DAO governance, identity systems, decentralized storage, and oracles.
It expands blockchain from "currency" to a "trustless application network."
5️⃣ Protocol Design and Innovation
GHOST Protocol: Optimizes block production efficiency and security.
Turing Completeness + Gas Limits: Ensures coexistence of flexibility and security.
Ether (ETH): Serves as transaction fees and incentive units.
From PoW to PoS: Transitioning from computational power competition to staking consensus, saving energy and enhancing security.
🔶 Ethereum Token Economics
1️⃣ Initial Distribution and Issuance
The genesis block allocated approximately 72 million ETH (ICO + Foundation + Developers), with early new coins generated through PoW mining, now transitioned to PoS validator rewards.
2️⃣ Issuance and Burning Mechanism
Issuance: Rewards validators who stake ETH.
Burning: Introduces a base Gas fee destruction mechanism; the busier the network, the more is burned.
3️⃣ Dynamic Balance of Inflation and Deflation
The total supply of ETH is not fixed but dynamically adjusted. PoS reduces the issuance rate, while high Gas usage can lead to "net deflation," enhancing scarcity.
4️⃣ Functions and Uses
ETH is the "fuel" of the Ethereum network:
Paying transaction and contract execution fees (Gas).
Participating in staking validation to secure the network.
Serving as foundational collateral and liquidity assets in ecosystems like DeFi, NFTs, Layer 2, etc.
5️⃣ Governance and Flexible Monetary Policy
Ethereum's monetary policy is not rigidly set but dynamically adjusted by community consensus and protocol upgrades, giving ETH both "inflationary incentives + usage burning" characteristics.