Teamco Technical Whitepaper

1. Executive Summary: The "Code as Law" Philosophy

Teamco is not just a Move-to-Earn application; it is a Real-World Asset (RWA) protocol where digital value is strictly backed by physical activity and verified social engagement.

In a rapidly changing world, where Artificial Intelligence and automation are poised to significantly impact employment and liberate humanity from physical labor, Teamco's mission is to create an ecosystem that serves as a powerful motivator for physical activity. We believe that money is the most natural and effective motivator.

We observed that a vast amount of social connections remain unutilized. We decided to bridge Move-to-Earn mechanics with the untapped potential of horizontal narrative distribution—a controllable "word of mouth" where every user becomes an ambassador for their favorite brands and benefits from having their own voice.

Key Pillars

• Proof-of-Activity: Mining is validated via OS-level Health APIs (Apple HealthKit, Google Fit) with advanced deduplication algorithms.
• Proof-of-Value: Social mining (Instagram/Telegram) is verified via direct API integrations, ensuring advertisers pay for real engagement, not screenshots.
• Financial Integrity: A double-entry aggregation system continuously reconciles the Guarantee Fund against user balances, making fractional banking impossible.
• Zero-Tolerance Security: Cheaters don't drain the economy—they subsidize honest users through the Confiscation Protocol.

2. Business Model & Economy

2.1. The Attention Economy Paradigm

Our value proposition is based on a fundamental shift in advertising. Brands are not just "sponsoring" users; they are building communities of loyal users. The value lies in the fact that our system changes the approach to advertising itself.

Our users and brands interact in the nascent Attention Economy. We believe the future belongs to the attention economy, and our platform is the first to offer brands, businesses, politicians, and celebrities a model where they do not pay platforms (like Facebook or Google) for access to an audience, but pay the audience directly, buying their attention.

Furthermore, the essence of the attention economy is that it is a symbiosis: brands pay for positive reviews about their product, and the user, by dedicating attention to the product, eventually becomes familiar enough to buy it. This creates a closed loop of value where marketing spend converts directly into user loyalty and sales.

2.2. The Guarantee Fund Logic: The Foundation of Value

The Guarantee Fund is the financial backbone of the Teamco ecosystem. It is a pool of real-world assets (USD, USDT) that backs the value of every Teamcoin.

How the Guarantee Fund Works: Step-by-Step

Step 1: Social Engagement Task Creation by Brands

Brands and sponsors create tasks focused on social engagement and narrative distribution, in full compliance with each platform's terms of service. These tasks may include:

• Content Distribution: Sharing brand narratives and creative concepts across social platforms
• Community Engagement: Participating in discussions and providing authentic feedback
• Opinion Expression: Sharing genuine user experiences and product reviews
• Channel Growth: Supporting content creators through subscriptions and engagement

When a brand creates a social engagement task:

• Budget Allocation: The task budget is reserved from the sponsor's wallet
• Task Distribution: The engagement opportunity becomes available to eligible users
• Fund Security: Budget is locked in escrow until task completion or expiration

Step 2: User Performs Social Interaction (Automatic Activation)

Users browse available brand offers in the app. When they choose to engage, the system automatically responds:

Two Types of Automatic Rewards:

• Social Rating Boost: For certain engagement types, your Social Rating increases (affects future mining multipliers)
• Mining Task Launch: For other engagement types, a 24-hour mining task is instantly activated

User Mining Planning:

This creates a powerful planning mechanism:

• See Offer: User browses brand offers in the app
• Plan Activity: User decides when they want to walk (e.g., evening walk planned)
• Post Comment: User posts comment on brand's Instagram/Telegram
• Instant Activation: 24-hour mining task starts immediately
• Go Walk: User goes for their planned walk and mines TMCO

Verification Process:

• API Integration: Automatic verification through official platform APIs
• Instant Confirmation: System receives webhook notification of user's interaction
• Compliance Check: System ensures all activities comply with platform terms of service
• Automatic Reward: Mining task or rating boost activated within seconds

Step 3: Mining Task Execution (24 Hours)

Once activated, the mining task runs for exactly 24 hours:

Example Mining Completion (24-hour period):

• Social task value: $100
• User completes 50% of mining difficulty
• User Receives: 50 TMCO (worth $50 at locked rate of $1.00 per TMCO)
• Guarantee Fund Addition: FULL $100 added (not just $50!)
• Result: Fund grew by $100, token supply only grew by $50 worth

Step 5: Aggregation & Price Recalculation

Key Insight: The brand paid for social engagement (content distribution, community participation, authentic feedback), but the user's reward is tied to physical activity (walking steps). This separation is crucial:

• Brand gets guaranteed social engagement (verified through platform APIs)
• User must be physically active to claim the full reward
• Incomplete mining creates surplus in Guarantee Fund

Price Recalculation:

• Before Task: Fund = $100,000 | Supply = 100,000 TMCO | Price = $1.00
• After Task: Fund = $100,100 | Supply = 100,050 TMCO | Price = $1.0005
• Result: Price increased by 0.05% from a single partially completed task

This mechanism ensures that statistically, since users will almost never complete 100% of all tasks globally, the Guarantee Fund will always accumulate surplus value, creating constant upward pressure on the token price.

2.3. Competition Engagement: Skin in the Game

Entry fees for competitions (P2P Duels, Tournaments) serve a dual purpose: they fund the prize pools and, more importantly, they significantly increase user engagement and excitement. When users have "skin in the game," their motivation to be physically active skyrockets, leading to higher retention and platform activity.

Competition Economics:

• P2P Duels: 5% platform fee creates revenue stream while maintaining 95% prize pool
• Tournaments: Entry fees are locked in escrow, ensuring prize pool solvency
• Leagues: Sponsored by brands, creating zero-cost engagement for users

3. Mining Mechanics (Proof-of-Activity)

Mining in Teamco is the process of converting physical energy (steps) into digital value. It is not a passive income; it requires active physical validation.

3.1. The X2 Rule: Dynamic Difficulty Adjustment

To ensure fairness and prevent inflation, the system uses a dynamic difficulty adjustment. The core rule is:

The system calculates the average steps of all active users over a 10-day period. To mine the full reward of a task, a user must walk X2 (double) this average during the same 24-hour period.

3.2. 10-Day Rolling Average: Smooth Difficulty & Strategic Planning

The platform average is not calculated from a single 24-hour period. Instead, it uses a 10-day rolling average (240 hours) to prevent sharp spikes and enable strategic planning:

Why 10 Days Instead of 24 Hours?

• Prevents Manipulation: A single day of high activity doesn't drastically spike the average
• Smooths Volatility: Weekend vs weekday patterns are averaged out
• Enables Planning: Users can observe trends over several days and plan their strategy
• Fair Competition: New users see a stable baseline, not a random spike

Strategic Planning Benefits

The 10-day rolling average transforms mining from a gamble into a strategic game:

1. Trend Analysis: Users can track the 10-day average in the app and see if it's rising or falling
2. Optimal Timing: Take tasks when the average is low (easier difficulty) and complete them before it rises
3. Competition Strategy: Join competitions during low-activity periods for better odds
4. Load Balancing: Experienced users learn to avoid "rush hours" when everyone is mining

Example of Strategic Behavior:

• Monday: User checks app, sees 10-day average is 5,500 steps (trending down from 6,000)
• Decision: "Good time to take tasks! Average is dropping, I can plan for 11,000 steps target"
• Tuesday-Thursday: User monitors average, it stays around 5,300 steps (stable)
• Friday: User takes 3 tasks worth $300, needs 10,600 steps (X2 of 5,300)
• Result: User walks 11,000 steps, completes 103% → Gets full $300 reward

3.3. The Deflationary Trap: Why 100% Completion Is Impossible

Despite the ability to track trends and plan strategically, the system creates a mathematical impossibility for the average user to consistently achieve 100% completion:

The Paradox

1. Low Average Period: When platform average is low (e.g., 4,000 steps), users think "It's easy!" and take MORE tasks
2. Increased Activity: More users taking tasks → More people walking → Platform average RISES (e.g., to 6,000 steps)
3. Difficulty Spike: Now users need 12,000 steps instead of 8,000 to get 100%
4. Incomplete Mining: Users who planned for 8,000 steps only complete 66% of their tasks
5. Surplus Created: The 34% incomplete portion stays in Guarantee Fund → Price increases

Real-World Scenario

• User takes 5 tasks worth $500 total when average is 4,000 steps/day
• User plans to walk 8,000 steps to mine 100% of all tasks
• But thousands of other users also took tasks, raising the average to 6,000 steps
• Now user needs 12,000 steps for 100%, but only walks 8,000
• Completion rate: 8,000 ÷ 12,000 = 66.6%
• User receives: $333 worth of TMCO (66.6% of $500)
• Guarantee Fund receives: FULL $500
• Surplus: $167 creates deflationary pressure

3.4. Self-Regulating Deflationary Engine

The X2 rule combined with the 10-day rolling average creates a self-balancing economic system:

Scenario	User Behavior	Economic Effect
Low Activity Period	Users take MORE tasks (easy difficulty)	Difficulty rises → Completion drops → Price grows
High Activity Period	Users take FEWER tasks (hard difficulty)	Difficulty drops → Completion rises → Price stable
Equilibrium	System finds balance at ~60-70% avg completion	Consistent 30-40% surplus → Steady price growth

Individual Achievement vs Collective Statistics

Important Distinction: While the system makes 100% completion statistically impossible for ALL users collectively, it remains a real and achievable goal for individual users.

Why This Works:

• Individual Level: Any single user can decide "I will walk 20,000 steps today" and achieve 100% completion
• Collective Level: If ALL users tried to walk 20,000 steps, the average would rise to 20,000, making the new target 40,000 steps
• Result: The system rewards individual effort and determination while preventing collective inflation

Real-World Example:

• User A receives a $1,000 task (very valuable)
• Current average: 5,000 steps → Target: 10,000 steps
• User A commits: "This is worth it, I'll walk 15,000 steps to guarantee completion"
• User A achieves 150% → Gets capped at 100% ($1,000 reward)
• Success! Individual motivation and planning led to full reward

This creates a healthy competitive environment where:

• Motivated users can always achieve their goals through effort
• Lazy or casual users contribute to the surplus (price growth)
• The system rewards dedication without causing hyperinflation
• Every user has a fair chance based on their personal commitment

3.5. Verification & Anti-Cheat

Data integrity is paramount. Teamco integrates directly with OS-level health repositories:

• Apple HealthKit (iOS)
• Google Fit (Android)

Deduplication & Security: The system employs advanced deduplication algorithms on both iOS and Android to filter out overlapping data sources (e.g., phone + watch counting the same steps). We are also actively developing proprietary anti-cheat mechanisms to detect and ban simulated steps (shakers, emulators).

4. Social Integration Logic: Monetizing Attention & Reputation

Our vision is to integrate all possible social networks, games, and methods of social interaction. We have started with Instagram and Telegram, with X (Twitter) and TikTok integrations planned for the near future.

4.1. Instagram Integration: Compliance Through Gamification

Platform Policy Compliance: Instagram's Terms of Service prohibit direct monetary rewards for posting content, reactions, or comments. We fully respect these rules and have designed our integration accordingly.

Our Compliant Approach

1. Narrative Selection (Not Paid Posting)

• Brand Offers Narratives: Brands provide creative ideas, themes, or concepts (e.g., "Share your morning workout routine")
• User Choice: Users browse available narratives and choose what genuinely interests them
• Voluntary Publication: Users publish content because they find it cool or interesting, not because they're paid to do so
• No Direct Payment: Users receive ZERO immediate payment for the publication itself

2. Social Rating System: Voting with Your Reputation

Instead of direct payment, publishing content affects a user's internal "Social Rating". But here's the brilliant part: the rating growth depends not on engagement metrics, but on how many OTHER users choose the same narrative.

The Narrative Selection Mechanism

Brands don't just offer one narrative—they offer multiple variants (e.g., 10 different designs or story concepts) and let users choose. This creates a reputation-based voting system:

Why This Is Genius: A/B Testing Through Reputation

Users aren't just liking content—they're posting it to their followers, which means they're voting with their reputation:

• Real Commitment: Posting to your audience is a much stronger signal than a like
• Quality Filter: Users only post content they genuinely find cool/interesting
• Brand Insights: Brands discover which narratives resonate organically
• No Fake Engagement: Users risk their social capital, so they choose carefully

The Reward Distribution

The brand allocates a fixed reward pool for all 10 variants. This pool is distributed based on narrative popularity:

Example:

• Brand Budget: $1,000 for 10 narrative variants
• Initial Multiplier: Each variant = +100 Social Rating points
• User A posts Variant #5: Multiplier for #5 → +110, others → +98
• Users B, C, D also choose #5: Multiplier for #5 → +150, others → +85
• Final Distribution:
  • Variant #5 (most popular): Users get +150 rating → Higher mining multiplier
  • Variant #3 (unpopular): Users get +70 rating → Lower mining multiplier

Double Validation: The Brand's Holy Grail

This system provides brands (and anyone promoting anything) with something unprecedented: real audience research at the cost of content distribution.

How the Economics Work:

• Brand Creates Campaign: $1,000 budget for 10 narrative variants
• Users Post Content: Narratives spread across thousands of followers
• Brand Pays: For physical activity (mining) based on users' Social Rating
• Brand Gets:
  • ✅ Content distribution (what they paid for)
  • ✅ A/B testing data (free bonus)
  • ✅ Engagement analytics (free bonus)

First Validation: User Reputation Vote

• User Selection: Users choose which narrative they genuinely like
• Reputation Risk: By posting, users stake their social capital
• Quality Signal: Popular narratives = what resonates with real people
• Predictive Data: Brands see which ideas users trust enough to post

Second Validation: Follower Engagement Analytics

• Real Audience Reaction: Users' followers see the content and react organically
• Engagement Metrics: Views, likes, comments, shares from real people (not bots)
• Confirmation: If Variant #5 was chosen by many users AND got high engagement, it's a winner
• Disconfirmation: If a variant was popular but got low engagement, users misjudged
• Confirmatory Data: Brands see which ideas actually resonate with end audiences

Example of Double Validation:

• Variant #5: Chosen by 500 users (high reputation vote)
• Engagement: Average 10,000 views, 500 likes per post (high follower reaction)
• Result: ✅ Double confirmation → This creative works! Scale it.

• Variant #3: Chosen by 200 users (medium reputation vote)
• Engagement: Average 2,000 views, 50 likes per post (low follower reaction)
• Result: ⚠️ Disconfirmation → Users misjudged, creative doesn't resonate. Discard it.

This creates a self-correcting system where brands pay for content distribution (via mining rewards based on Social Rating) and receive market research as a free bonus. The same model works for anyone promoting anything—from political campaigns to indie musicians.

Why Users Can't Game This

• Hidden Multipliers: You don't know which narrative will be popular when you choose
• Delayed Reveal: Multipliers are shown only after the selection period ends
• Reputation Risk: Posting bad content hurts your follower engagement
• Genuine Selection: Users must trust their own taste and judgment

From Social Rating to Mining Rewards: Daily Automatic Tasks

The Social Rating doesn't pay users directly. Instead, it triggers automatic daily mining tasks sponsored by the brands users promoted:

The Daily Social Mining Task Mechanism:

• Trigger Time: Every day at 00:00 (user's local timezone)
• Task Value: Based on user's Social Rating (higher rating = higher task value)
• Sponsorship Pool: All brands the user posted for contribute proportionally
• Visible Attribution: User sees exactly which brands sponsored their task
• Mining Multiplier: Higher Social Rating = higher base task value (e.g., 1.5x or 2x)

Example:

• Monday: User posts content for Nike (Variant #5) and Adidas (Variant #2)
• Social Rating Increase: Nike variant was popular (+150 points), Adidas was unpopular (+70 points)
• Tuesday 00:00: System creates daily Social Mining Task worth $50
• User Sees: "Today's mining task ($50) is sponsored by: Nike ($35), Adidas ($15)"
• User Reaction: "Nike really values my posts! I'll keep promoting them."

Key Benefits:

• No Direct Payment: Users earn from physical activity, not from posts
• Automatic System: No manual claiming, task appears daily at 00:00
• Brand Visibility: Sponsors are clearly shown, building recognition
• Fair Distribution: Popular narratives contribute more to sponsorship pool
• Future Opportunities: High-rated users may receive exclusive sponsorship offers

3. Virality & Gratitude Mechanism

4. Uncertainty Creates Authenticity

Users never know which publication will bring success. This uncertainty gamifies the entire process, making it about creativity and social resonance rather than transactional labor. This approach:

• Encourages authentic, creative content (not scripted ads)
• Complies with Instagram's prohibition on "pay-per-post" schemes
• Creates genuine brand advocacy (users post what they actually like)
• Builds long-term relationships between brands and creators

Technical Implementation (Instagram Graph API)

• Webhook Verification: Real-time notifications when users publish content
• Automated Tracking: System monitors engagement metrics (views, likes, comments)
• No Screenshots: All verification happens through official Instagram API
• Business/Creator Accounts: Required for API access and verification

4.2. Telegram Integration: Monetizing Opinion & Reputation

Our approach with Telegram is fundamentally different. Here, we pay users for their PERSONAL OPINION and REPUTATION, which is fully compliant with Telegram's policies.

Key Principles

• Unbiased Feedback: Channel owners and brands CANNOT influence the content of comments. They cannot pay exclusively for positive or negative reviews.
• Reputation Monetization: We pay users for their genuine engagement. Whether the comment is critical or praising, if it comes from a real, active user, it has value.
• Subscription Value: Users earn for subscribing to channels, but only if they remain active subscribers
• Reaction Economy: Simple reactions (👍, ❤️, 🔥) are monetized as micro-tasks

Automated Task Creation for Channel Owners

Channel owners can enable automatic task creation:

• Setup: Owner sets budget (e.g., $0.01 per comment, $0.005 per reaction)
• Trigger: When owner publishes a post, system automatically creates tasks
• Distribution: Tasks appear instantly for all Teamco users subscribed to the channel
• Verification: Telegram Bot API verifies task completion in real-time
• Payment: Instant micro-payments to users upon verification

Technical Implementation

• MTProto API: Deep integration for private channel access
• Bot API: Verification of subscriptions and engagement
• Webhook System: Real-time event processing
• Anti-Fraud: Detection of fake accounts and bot activity

This dual approach allows us to monetize both the creative reach (Instagram) and the authentic voice (Telegram) of our community.

4.3. Philosophy & Adaptability: User is King

These examples illustrate our core philosophy: Inclusivity, Respect for Rules, and Flexibility.

We are building a system where the User is King. Brands and sponsors must compete for the user's attention, not the other way around.

We are constantly exploring new social platforms and APIs to integrate with, finding unique, compliant ways to unlock value for our community.

Planned Integrations

• X (Twitter): Monetizing retweets, quote tweets, and thread engagement
• TikTok: Video creation challenges with view-based rewards
• YouTube: Comment engagement and video sharing
• Gaming Platforms: In-game achievements linked to physical activity

5. Competition System

Competitions in Teamco are not simple "winner-takes-all" bets. They are instances of Competitive Collective Mining.

5.1. The "Race for the Pool" Logic

The "Race for the Pool" logic creates urgency. Since the prize pool is finite (based on entry fees or sponsor budget), the goal is to mine this pool before others do.

Example (The Gold Rush):

• Setup: 1,000 users enter a League ($10 each). Total Pool: $10,000 (10,000 TMCO).
• The Race: Every step you take mines a fraction of this pool.
• Scenario: The users are extremely active. They walk X4 of the average daily.
  Result: The entire 10,000 TMCO pool is mined in just 15 days instead of 30.
• Outcome: The competition ends early. Users who walked the most during these 15 days secured the largest share. Users who planned to "catch up later" get nothing because the pool is empty.

This creates a fierce, high-velocity economy. You are not just walking against a static goal; you are walking against the collective speed of the entire group to secure your share of a shrinking resource.

5.2. Limits, Durations & Multipliers

To ensure fairness and maintain high engagement, we impose strict limits on the number of participants per competition instance:

• P2P Duels (Max 2): 24 Hours. Users choose their opponent directly.
• Tournaments (Max 10): Up to 10 Days. Users can choose opponents or join open lobbies.
• Leagues (Max 100): Up to 30 Days. Automated Matchmaking.

5.3. Fairness & Activity-Based Grouping

To ensure fairness in large-scale events, the system automatically splits users into Leagues of 100 based on their historical activity.

This ensures that every user has a fighting chance to win, regardless of their fitness level, keeping motivation high for everyone.

6. Security & Economics: The Confiscation Protocol

When a cheater is caught, their tokens are confiscated and burned. However, the real money (USD) that backed those tokens remains in the Guarantee Fund. This means the backing per remaining token INCREASES. Cheaters effectively subsidize honest users.

6.1. The Zero-Tolerance Mechanism

Our business model is built on monetizing Reputation and Attention (Social Mining). Physical steps serve merely as a validator—a multiplier of rewards.

If a user attempts to falsify this validator (step manipulation, emulators, shakers), the system activates the Confiscation Protocol:

Detection Phase

Our multi-layer anti-fraud system identifies anomalies:

• iOS Deduplication Service: Detects conflicting data sources (phone + watch reporting identical steps)
• Google Fit Service: Identifies non-human cadence patterns and impossible activity spikes
• Behavioral Analysis: Flags accounts with abnormal activity patterns (24/7 walking, perfect consistency)
• Source Verification: Cross-references data from multiple health APIs
• Machine Learning: Continuously trained models detect emulator signatures and shaker devices

Continuous System Training: Paid Fraud Testing Program

We are so confident in our anti-cheat system that we run a permanent program:

How the Training Program Works:

• User Agreement: User signs up for fraud testing program
• Scheduled Attempt: "I will try to fake 20,000 steps on Tuesday 2PM-4PM using method X"
• Execution: User attempts the fraud (shaker, emulator, etc.)
• Detection Check: System either catches it or misses it
• If Caught: User gets small participation reward, system confirmed working
• If Missed: User gets large bounty, we analyze and patch the vulnerability

Example Training Scenario:

• User Reports: "I found a phone shaker device that bypasses iOS deduplication"
• We Respond: "Try it on Wednesday 10AM-12PM, we'll pay $500 if successful"
• User Succeeds: Generates 15,000 fake steps undetected
• We Analyze: Study the device signature, cadence pattern, data source
• We Update: Add new detection rule to flag this specific pattern
• User Paid: Receives $500 bounty for helping improve security

Anomaly Detection: Protecting Normal Users

Our algorithms are designed to detect impossible anomalies, not normal variation:

Normal vs Anomalous Behavior:

User Type	Behavior	System Response
Normal User	5,000-15,000 steps/day, natural variation	✅ No flags, completely safe
Athlete	20,000-40,000 steps/day, consistent but human	✅ High but natural, safe after review
Cheater	50,000+ steps/day, 24/7, perfect cadence	🚫 Extreme anomaly, flagged for review

Why Normal Users Are Protected:

• Statistical Safety: We only flag extreme outliers (top 0.1% of anomalies)
• Human Patterns: Normal variation in steps is expected and ignored
• Context Awareness: System understands weekends, holidays, sick days
• Appeal Process: Even if flagged, manual review protects legitimate users

Pre-Withdrawal Verification: The Final Checkpoint

Before ANY withdrawal or exchange operation, the system performs a comprehensive fraud scan:

What We Check Before Withdrawal:

• Pattern Analysis: Scan entire step history for anomalies (24/7 walking, perfect consistency)
• Source Verification: Validate all step data sources (iOS HealthKit, Google Fit)
• Behavioral Flags: Check for emulator signatures, shaker device patterns
• Cross-Reference: Compare data from multiple health APIs
• ML Detection: Run machine learning models trained on fraud patterns

Why This Matters:

• Last Line of Defense: Even if cheater evaded detection during mining, they can't withdraw
• Complete History Scan: We check everything, not just recent activity
• No Escape: Attempting withdrawal triggers the most thorough fraud check
• Honest Users Protected: Ensures only legitimate earnings leave the system

Execution Phase

When fraud is confirmed (either during mining or at withdrawal attempt), the system executes an irreversible sequence:

Step 1: Instant Account Freeze

• Account status changed to "Banned"
• All active tasks immediately cancelled
• Withdrawal functions permanently disabled
• Social features locked

Step 1.5: Appeal Process (Fair Review)

We believe in fairness. Before executing the final confiscation, we provide an opportunity for users to prove their innocence:

Appeal Review Process:

• Case Analysis: Team reviews all submitted evidence and user history
• Pattern Verification: Double-check if detected patterns are truly fraudulent
• False Positive Check: Ensure legitimate users aren't wrongly flagged
• Decision: If fraud confirmed → proceed to Step 2. If innocent → account restored

Example of Legitimate Edge Cases:

• Marathon Runner: User walks 40,000 steps/day consistently (legitimate athlete)
• Medical Condition: User has unusual gait patterns due to injury/disability
• Job-Related: Delivery driver, security guard with 24/7 activity
• Result: After review, account restored with apology

Step 2: Token Confiscation & Burning

Only after appeal review confirms fraud, we execute this step:

• Balance Retrieval: System reads the cheater's total TMCO balance (e.g., 1,000 TMCO)
• Token Burning: ALL tokens are permanently destroyed via burning.service.js
• CRITICAL: The Guarantee Fund backing remains untouched

6.2. Economic Impact: Value Redistribution

This mechanism transforms fraud attempts into a deflationary engine for honest users:

The Simple Economics of Confiscation

The token price is determined by a simple formula:

Price = Guarantee Fund (USD) / Total Token Supply (TMCO)

When We Catch a Cheater:

• Account Banned: Cheater's account is permanently frozen
• Tokens Burned: ALL cheater's TMCO are destroyed (e.g., 1,000 TMCO)
• Fund Untouched: The Guarantee Fund keeps the backing (e.g., $1,000)
• Cheater Gets: ZERO payout - no withdrawal, no refund

What This Means:

• Before Confiscation: 100,000 TMCO backed by $100,000 = $1.00 per token
• Cheater Had: 1,000 TMCO (backed by $1,000)
• After Confiscation: 99,000 TMCO backed by $100,000 = $1.0101 per token
• Result: Price increased by 1.01% because fewer tokens share the same fund

Real-World Example: The $10,000 Cheater

Imagine a sophisticated cheater who accumulated 10,000 TMCO (worth $10,000 at $1.00 per TMCO):

What the Cheater Contributed:

• Paid $500 in competition entry fees (revenue for platform)
• Generated 50,000 ad impressions for brands (value for sponsors)
• Created social media posts (content for the ecosystem)
• Total value contributed: ~$1,000+

What the Cheater Receives:

• Payout: $0
• Token balance: 0 TMCO
• Account status: Permanently banned

What Honest Users Receive:

• Token supply decreased by 10,000 TMCO
• $10,000 remains in Guarantee Fund
• Price per token increases proportionally
• Every honest holder's wealth increases

6.3. Why Cheaters Can't Win

Unlike traditional systems where cheaters profit, Teamco creates a negative expected value for fraud:

Scenario	Traditional M2E	Teamco
Cheater accumulates $1,000	✅ Withdraws $1,000	❌ Receives $0
Impact on honest users	❌ Economy drained by $1,000	✅ Tokens become more valuable
Platform revenue	❌ Loss of $1,000	✅ Gained entry fees + ad views
Token price	❌ Decreases (inflation)	✅ Increases (deflation)

6.4. Investor Perspective: Fraud as a Feature

For investors, the Confiscation Protocol creates a unique value proposition:

Traditional Risk: In most crypto projects, fraud is an existential threat.

Teamco Reality: Fraud attempts make our token more valuable.

The Virtuous Cycle

1. Cheaters attempt to game the system
2. They pay entry fees and generate ad revenue
3. They accumulate tokens (backed by Guarantee Fund)
4. System detects and bans them
5. Tokens are burned, backing remains
6. All honest users become richer
7. Higher token value attracts more honest users
8. Platform grows stronger

6.5. Technical Implementation

The Confiscation Protocol is enforced through multiple backend services:

• iOS Step Deduplication Service: Identifies duplicate step sources on iOS devices
• Android Fitness Data Validator: Validates Android step data authenticity
• User Profile Management Service: Manages account ban status and restrictions
• Token Burning Service: Executes token burning operations
• Financial Aggregation Service: Updates global fund calculations
• Wallet Security Service: Prevents withdrawals from banned accounts

All operations are atomic (ACID transactions), ensuring no partial states or data corruption.

7. Financial System & Mathematical Proof of Price Appreciation

7.1. Teamcoin (TMCO) Pricing Logic

Teamcoin is an RWA (Real World Asset) protocol token. Its price is not determined by speculative trading on exchanges, but by a mathematical formula enforced by the system's core logic:

Price = Guarantee Fund (USD) / Total TMCO Supply

7.2. Token Issuance Control: The 20M Limit & Progressive Emission Tax

Teamcoin implements a sophisticated emission control mechanism that ensures sustainable long-term price growth while preventing value dilution.

Why Unlimited Emission Would Fail

To understand why we limit token issuance, consider what happens with unlimited emission:

Example: Unlimited Emission Scenario

Time	Guarantee Fund	Token Supply	Price	Impact of +$1,000
Launch	$100,000	100,000 TMCO	$1.00	+1% price growth
Year 1	$10,000,000	10,000,000 TMCO	$1.00	+0.01% price growth
Year 3	$100,000,000	100,000,000 TMCO	$1.00	+0.001% price growth

The Fatal Flaw:

• Fund grows 100x → Supply grows 100x → Price stays at $1.00
• Each new dollar has 100x less impact on price
• Price growth rate approaches zero
• Investors lose interest (no appreciation)
• Platform stagnates

The Solution: 20 Million Token Hard Cap

To prevent dilution and ensure sustainable growth, Teamcoin implements a two-phase emission model:

Progressive Emission Tax: How It Works

After reaching 20 million tokens, each additional 1% of supply (200,000 tokens) increases the generation cost by 10% of the current token price:

Token Range	% Above 20M	Emission Tax	Generation Cost (if base = $10)
0 - 20,000,000	0%	0%	$10.00
20,000,001 - 20,200,000	+1%	+10%	$11.00
20,200,001 - 20,400,000	+2%	+20%	$12.00
20,400,001 - 20,600,000	+3%	+30%	$13.00
20,600,001 - 20,800,000	+4%	+40%	$14.00
21,000,001 - 21,200,000	+5%	+50%	$15.00

Formula:

Emission Tax = ((Current Supply - 20,000,000) ÷ 200,000) × 10%

Generation Cost = Base Price × (1 + Emission Tax)

The Game-Changer: Burn Without Penalty

Here's where the system becomes brilliant. Brands and users can avoid the emission tax entirely by paying with TMCO tokens instead of USD:

Real-World Example: The Smart Brand Strategy

Scenario: Supply = 20,500,000 TMCO (2.5% above 20M), Base Price = $10.00

Emission Tax Calculation:

• Tokens above 20M: 500,000
• Tax brackets: 500,000 ÷ 200,000 = 2.5 brackets
• Emission Tax: 2.5 × 10% = 25%
• Generation Cost: $10.00 × 1.25 = $12.50 per TMCO

Brand Wants to Create $1,000 Task:

Option A: Pay USD (Inefficient)

1. Brand deposits $1,000
2. System generates: $1,000 ÷ $12.50 = 80 TMCO
3. Guarantee Fund: +$1,000
4. Supply: +80 TMCO
5. Total Cost: $1,000

Option B: Buy & Burn TMCO (Efficient)

1. Brand buys 100 TMCO on exchange at $11 each = $1,100
2. Brand creates task, paying 100 TMCO
3. System burns 100 TMCO (no tax!)
4. Guarantee Fund: unchanged (tokens burned, not withdrawn)
5. Supply: -100 TMCO (deflationary!)
6. Total Cost: $1,100
7. Effective Cost per Token: $11 vs $12.50 (saves $1.50 per token)

The Economic Cycle: From Inflation to Deflation

This mechanism creates a self-reinforcing cycle that accelerates price growth:

Phase 1: Early Growth (0-20M tokens)

1. Users mine TMCO through tasks
2. Supply grows steadily
3. Price grows due to 60% average completion (see Section 7.3)
4. Platform establishes user base

Phase 2: Transition (20M-21M tokens)

1. Emission tax kicks in (10%-50%)
2. Brands start noticing: buying is cheaper than generating
3. Some brands buy TMCO, some still generate
4. Market for TMCO develops

Phase 3: Deflationary Dominance (21M+ tokens)

1. Emission tax = 50%+ (very expensive to generate)
2. ALL brands prefer buying TMCO on market
3. Brands burn TMCO for tasks → Supply decreases
4. Users mine new TMCO → but less than what's burned
5. Net effect: Supply shrinks, price accelerates upward

Why Users Win: The Attention Economy

This system transforms user attention into a premium asset:

• Users Mine TMCO: By completing social tasks and walking
• Brands Need TMCO: To create tasks without paying emission tax
• Users Sell Above Floor: Market price > Guarantee Fund price (due to brand demand)
• Brands Buy Willingly: Still cheaper than generating with tax
• Everyone Profits: Users earn premium, brands save on tax, token price grows

Example: The Attention Premium

• Guarantee Fund Price: $10.00 (floor)
• Generation Cost (with 25% tax): $12.50
• Market Price: $11.00 (sweet spot)
• User Profit: $1.00 per token (10% above floor)
• Brand Savings: $1.50 per token (vs generation)
• Win-Win: Both parties benefit from the transaction

7.3. Mathematical Proof: Why Price Cannot Fall

The system is designed so that the price can only remain stable or grow. It is mathematically impossible for the price to drop due to internal mechanics.

Scenario A: Burning (Price Stability)

When a user withdraws funds or pays competition fees, they burn TMCO tokens:

Example:

• Initial State: Fund = $100,000 | Supply = 100,000 TMCO | Price = $1.00
• User Action: Withdraws $100 (burns 100 TMCO)
• Fund Change: $100,000 - $100 = $99,900
• Supply Change: 100,000 - 100 = 99,900 TMCO
• New Price: $99,900 ÷ 99,900 = $1.00 (unchanged)

Result: Both the Fund and the Supply decrease by the exact same ratio. The price remains stable.

Scenario B: Mining (Price Growth)

This is the primary engine of growth. When sponsors create tasks, the 100% rule creates surplus value:

Example:

• Initial State: Fund = $100,000 | Supply = 100,000 TMCO | Price = $1.00
• Sponsor Creates Task: $100 task for social engagement + mining
• User Completes: 50% of mining (walks 5,000 of 10,000 required steps)
• User Receives: 50 TMCO (worth $50 at locked rate of $1.00)
• Fund Addition: +$100 (FULL task value)
• Supply Addition: +50 TMCO (only 50% of potential)
• New State: Fund = $100,100 | Supply = 100,050 TMCO
• New Price: $100,100 ÷ 100,050 = $1.0005
• Price Increase: +0.05%

Result: The Fund grew by $100, but the Token Supply only grew by $50 worth of tokens. The surplus $50 increases the backing per token, pushing the price UP.

Scenario C: Confiscation (Maximum Price Growth)

When cheaters are banned, their tokens are burned but the backing remains:

Example:

• Initial State: Fund = $100,000 | Supply = 100,000 TMCO | Price = $1.00
• Cheater Banned: 1,000 TMCO confiscated (worth $1,000)
• Tokens Burned: -1,000 TMCO
• Fund Change: $0 (the $1,000 stays in the fund!)
• New State: Fund = $100,000 | Supply = 99,000 TMCO
• New Price: $100,000 ÷ 99,000 = $1.0101
• Price Increase: +1.01%

Result: Pure deflation. Supply decreases while Fund remains constant, creating maximum price appreciation.

7.4. Aggregate Effect: Compound Growth

In practice, all three scenarios occur simultaneously across thousands of users:

Annualized Growth: 0.45% daily ≈ 600%+ annual price appreciation (compounded)

This is not speculation—it's mathematical certainty based on user behavior patterns.

7.5. Two-Tier Pricing: Guaranteed Floor, Unlimited Ceiling

Teamcoin operates with a unique dual-pricing model that provides investor protection while allowing market speculation:

Understanding the Two Prices

At any given moment, TMCO has two distinct prices:

Price Type	Determined By	Can Change?	Guarantee
Internal Price (Floor)	Guarantee Fund ÷ Token Supply	Only UP (mathematically)	✅ Guaranteed by Teamco
Exchange Price (Market)	Supply & Demand on exchanges	Can fluctuate freely	❌ No guarantee (speculative)

Example: The Price Gap Scenario

Initial State:

• Guarantee Fund: $100,000
• Token Supply: 100,000 TMCO
• Internal Price: $100,000 ÷ 100,000 = $1.00 per TMCO
• Exchange Price: $1.50 per TMCO (50% premium)

Investor Perspective:

• Investor buys 100 TMCO on exchange for $150 ($1.50 each)
• Investor knows: internal price = $1.00 (backed by Guarantee Fund)
• Investor understands: internal price will grow to $2.00+ over time (mathematical certainty)
• Strategy: Buy at $1.50, wait for internal price to reach $2.00, profit guaranteed

The Self-Balancing Arbitrage Mechanism

When exchange price exceeds internal price, users can profit through arbitrage, which automatically balances the market:

Arbitrage Scenario:

• Exchange Price: $1.50 per TMCO
• Internal Price: $1.00 per TMCO
• Opportunity: 50% profit margin available

User Action (Arbitrage):

1. User Invests: $10 into mining tasks (when difficulty is low, see Section 3)
2. User Mines: 10 TMCO at internal price ($1.00 each = $10 total cost)
3. User Sells: 10 TMCO on exchange at $1.50 each = $15 revenue
4. Profit: $15 - $10 = $5 (50% return)

Why Exchange Price Cannot Fall Below Internal Price

This is the critical protection mechanism:

Impossible Scenario: Exchange price = $0.90, Internal price = $1.00

• Why This Can't Happen: No rational user would sell TMCO on exchange for $0.90 when Teamco will pay $1.00 through the Guarantee Fund
• Immediate Arbitrage: If exchange price drops to $0.90, arbitrageurs instantly buy and withdraw through Teamco for $1.00
• Instant Profit: Buy at $0.90, withdraw at $1.00 = 11% instant profit
• Market Correction: Buying pressure pushes exchange price back up to $1.00

Real-World Example: Complete Cycle

Phase 1: Premium Period

• Internal Price: $1.00 | Exchange Price: $1.50
• Users mine 10 TMCO for $10, sell on exchange for $15
• Profit: $5 per cycle
• Effect: Exchange price drops to $1.20

Phase 2: Convergence

• Internal Price: $1.00 | Exchange Price: $1.20
• Arbitrage continues but with smaller margins
• Exchange price approaches $1.05

Phase 3: Equilibrium

• Internal Price: $1.00 | Exchange Price: $1.02
• Arbitrage becomes unprofitable (2% margin too small after fees)
• Market stabilizes near internal price

Phase 4: Internal Price Growth

• Time passes, users complete tasks at 60% average
• Internal Price grows: $1.00 → $1.10 → $1.20
• Exchange Price follows: $1.02 → $1.12 → $1.22
• All holders profit from mathematical price growth

Investor Value Proposition

Summary: The Perfect Investment

• Floor Price: Guaranteed by $100M+ Guarantee Fund (grows daily)
• Ceiling Price: Unlimited (market determines upside)
• Growth Mechanism: Mathematical certainty (not speculation)
• Arbitrage Protection: Market self-corrects to prevent undervaluation
• Risk Profile: Asymmetric (limited downside, unlimited upside)