AuxGas is fuel in Auxnet ecosystem which incentivizes network to participate in any consensus process, make computation, allow storage and thus securing the integrity of the network. 300 million premined AuxGas will be made available and distributed proportionally to AuxChips holders while launching Auxledger’s Auxnet network. New AuxGas can further be mined by AuxChips holder while participating in a hybrid proof of stake consensus model.

AuxGas can be utilized for following purposes:

• Enabling native assets transactions i.e AuxChips and AuxGas transfer in AuxNet ecosystem.
• Cost for computation and contract execution in Auxnet
• Computation cost for interchain communication
• Transaction cost for the interchain transaction and contract implementation
• Fee for node/address/assets based permission or ownership transfer

We are proposing a unique, first of its kind self-regulating economic model for AuxGas. While other models proposed by different networks are based on time/block-wise pre-decided token supply, we are proposing a more sustainable and dynamic way to control the supply of AuxGas as per demands being created on the network. The model will ensure that network can self-regulate the supply of AuxGas in a controlled and more systematic manner.

Mining reward consists of two portions:
• Block generation reward
• Transaction fees

We are proposing to split the block generation reward in two parts with proportion of a and b;
Block generation reward, M at zth block is given as summation of Fixed reward and Regulated reward.
Quantity of fixed reward & regulated reward will be calculated by below proposed mathematical model:
Initial fixed reward = A
Fixed reward adjustment (no. of blocks) = m
Fixed reward reciprocal factor = k
Regulated reward considerate (no. of blocks) = n
Rz is being calculated by finding out the change in gas consumptions through last n blocks and last 2n blocks. With below equation we can check the trend and predict the consumption of gas in coming blocks:
Simplifying above equation and predicting the change of gas consumption we derive:
Above equations will govern and predict the requirement of gases in coming times and thus the parameter for R(z) be adjusted accordingly to ensure that a dynamically controlled gas be generated and released.
Further, for contingency management and risk assessment, system must ensure that there are no sudden changes in the data. For realizing this we highlight the risk areas by calculating a derivative of the change in gas per block. A threshold parameter, k, is defined where at any given point below must hold true:
The areas where derivative will exceed the threshold parameter are highlighted as risk areas and thus will be normalized to ensure a smooth curve of generating number of gases is received.

There is an overall cap thresholding number of gases that will be released in a block and throughout time network is expected to meet the supply-demand curve and align itself in a self-sustainable model leading to new generation of gases to become zero. An additional hard cap of 2 Billion is kept as a total number of AuxGas in the ecosystem.

AuxGas that is being collected with every block formation is distributed equally among all the validator nodes participating in the consensus process. This process ensures incentivization for new entrants into the ecosystem and further securing the overall network.

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