How Freicoin works v0.1

Money production in Freicoin called "mining", process of execution some tasks to keep network running. Every Freicoin client capable do it, but in practice is dedicated business of computer enthusiasts with tuned top-level hardware. New money created in strictly limited amount according to math algorithm, which implemented in Freicoin client. Amount of money in circulation smoothly increasing during ~3 years after launch, and stabilizes at 100 mln. coins.

One part of money coming to miners, decreasing from 30% of new coins (on launch) to 5% (on stabilization). When network is small and young, we need care about it more that when it grown. Other part coming to Freicoin Foundation, non-profit organization, aimed to promote Freicoin and support sustainable world. 80% total coins distributed via Foundation.

Small tax, called demurrage fee, charged from every wallet. It ensures money circulation and encourages sustainable investments. These money, 5% per year, coming to miners and serves the network. After stabilization it's income for miners.