Notification

Notice of Adoption‑Aware Mining Update and Documentation Clarifications (MND Emissions).

Dear Holder,

This notification (the “Notice”) is provided to inform you that Ratio1 has implemented an adoption‑aware mining adjustment applicable to Master Node Deed (“MND”) Proof‑of‑Availability (“PoA”) emissions, and has updated the protocol documentation accordingly (including the Terms & Conditions, Terms of Use applicable to Node Deeds/MNDs - the updated version being available on the links https://ratio1.ai/terms-and-conditions and https://ratio1.ai/terms-of-use-nds-mnds - and the updated version of Ratio1 Whitepaper - being available on the link https://ratio1.ai/whitepaper, the modifications on the White Paper being on the page 12 of the White Paper ) to ensure full alignment between published terms and actual protocol operation.

The justification for implementing this adoption-aware mining adjustment is directly correlated with ensuring equity and alignment among all stakeholders, particularly the team and investors, regarding the long-term objective of adoption and organic growth. The initial schedule for Master Node Deeds (MNDs) was projected to release over 1 million tokens within the first year following the cliff period. Given the present level of adoption, this quantity translates to the injection of 1 million tokens into a circulating supply that is approximately 1 million at the time of this article's drafting. While adoption is currently lagging behind initial optimistic projections, this situation generates a structural imbalance: supply increases dramatically while demand, consumption, and overall real-world usage and traction remain static. This ultimately risks liquidity depletion, dilution, heightened volatility, and emission shocks within the decentralized exchange (DEX), which are significantly detrimental to the ecosystem. Such outcomes fundamentally contravene the principles of fairness, organic growth, and commercial traction, and may ultimately lead to ecosystem collapse.

No Change to MND Availability or Operational Power
This update does not change the MND’s availability concept (PoA), the MND’s technical/operational role, privileges, or “total power” within the Ratio1 ecosystem. Your MND ownership and associated rights remain as originally issued within SAFT. As presented below in point 2, please note that the MND emissions are contingent upon (i) verified node availability and (ii) the overall operational state of the ecosystem, including adoption indicators.
Adoption‑Aware Emission Capping and Adjustment
To preserve a sound, equitable, and sustainable token economy, MND emissions are now dynamically capped and adjusted to maintain a clear correlation with verified ecosystem adoption and network conditions. Accordingly, MND emissions are contingent upon (i) verified node availability and (ii) the overall operational state of the ecosystem, including adoption indicators. During periods of insufficient verified adoption and/or insufficient verified availability, emissions may be reduced, deferred, or temporarily paused under protocol rules. More details are available on page 12 of the updated White Paper
Consistency With Existing “No Guarantee” Disclosure (Terms of Use §7.5)
This update is consistent with the protocol’s previously disclosed position regarding rewards. For avoidance of doubt, the Terms of Use already stated (Section 7.5):

“The Company does not guarantee that operating a node will result in Tokens or that Tokens will have monetary value. Rewards depend on network activity…”
This Notice and the adoption‑aware adjustment operate in line with that existing disclosure.
Clarification on Mining Allocations
Any mining allocation curve, allocation amount, or maximum eligible emission schedule associated with an MND represents a contingent opportunity to mine subject to protocol conditions; it is not a guaranteed return, unconditional entitlement, or debt owed to the Holder.
No Addendum Required; No Modification of Core Contract Stipulations
No contract addendum, amendment, or separate execution is required in connection with this Notice, because the core MND contract articles/stipulations (including on‑chain licence characteristics and underlying rights) have not been modified. The documentation changes are clarificatory and intended to align the published materials with the protocol’s operational reality.
Effective Date; Acknowledgment
These changes are effective as of the date of this Notice (or such later effective date as specified in the updated documentation). Continued access to, or participation in, the Ratio1 ecosystem after the effective date constitutes acknowledgment and acceptance of the updated documentation, as mentioned above, including where acceptance is confirmed through cryptographic confirmation mechanisms within Ratio1 interfaces.
Additional Information
Further information can be obtained from the public announcement and updated White Paper:
- on Ratio1.ai website: https://ratio1.ai/blog/building-sustainable-token-economics-through-adoption-aware-mining
- whitepaper: https://ratio1.ai/whitepaper