Two tokens

HEZ and PEZ are not two flavours of the same thing. They answer to different authorities, live on different chains, and behave in opposite directions.

8.1 HEZ — the currency

The native token of the relay, the Asset Hub and People. One HEZ is 10¹² TYR. It pays fees, it secures the network, and it inflates.

Two hundred million HEZ exist at genesis, and the split is:

The relay mints its own sixty million plus a hundred and forty million of escrow — the mirror of what the Asset Hub holds, so that a teleport moves a token rather than creating one. The runtime carries a test that builds the genesis and asserts owned plus escrow equals exactly two hundred million.

Inflation is bounded and its base is fixed. The rate is a governance parameter, eight percent by default, hard-capped at ten percent by a constant no parameter can exceed. It is applied to a fixed base of two hundred million, not to total issuance — so the emission does not compound, and at the default it is sixteen million HEZ a year, of which fifteen percent goes to the treasury and the rest to those securing the chain. Only the Treasurer, an office on the People chain, may change the rate — never HEZ holders, and never by more than one percentage point at a time, no more often than every ninety days.

8.2 PEZ — the franchise

An asset on the Asset Hub, asset id one, five billion units, fixed forever. No inflation, no mint path, no burn path.

Its owner, issuer, admin and freezer are all one keyless account derived from a pallet identifier. No seed produces it, so nobody holds it. PEZ cannot be minted, force-frozen, or destroyed, because there is no account that could sign it. Beyond that, a call filter refuses mint, burn, force_create, force_asset_status and start_destroy for asset one arriving over a cross-chain message — so even the relay's superuser cannot reach it.

8.3 The halving

The rewards pool is not distributed by decision. It is released by arithmetic, monthly, and the amount halves every forty-eight releases — approximately four years.

The first period releases half the pool across forty-eight months: about 50,130,208 PEZ per month. Release forty-eight pays half that, release ninety-six half again, and the schedule reaches zero at the hundred and twenty-eighth period. Each release is derived from the release index rather than accumulated, so no drift is possible and no missed release can be double-paid.

Every release splits the same way: seventy-five percent to the incentive pot (the citizens' share, distributed by trust) and twenty-five percent to the government pot (the state's budget). Nobody signs this. It happens on block initialisation.