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In view of the disadvantages of core-stateless fair queuing fair active queue management algorithm based on hierarchical rate coding is proposed. In this method, the hierarchical rate coding in the compressed shared space of rate is pointed out to ensure more accurate rate max-min fairness. Effective punishment upon misbehaving flow with a full stateless method is imposed to improve the fairness of the algorithm. The queue arrival rate is maintained through reasonable hierarchical packet dropping and the buffer have a better utilization because of management of the index queue. Experiment results show that the algorithm keeps high efficiency and good fairness, and has good performances.