Economics

Supply, fees and the pool

A fixed supply, a single fee destination and one reserve account, connected by arithmetic that anyone can reproduce.

Token supply

Fixed initial supply, minted once at deployment.
No inflation path and no administrator mint function in the intended architecture.
Mint authority is expected to be revoked at deployment and verifiable on an explorer.
Supply is fixed: tokens are never burned, including during redemption.

If a deployment requires a different supply model, that model — and the reason for it — must be documented here before launch rather than discovered on-chain.

Creator fees

100% of the creator-fee revenue designated to the protocol is routed into the Asset Backing Pool. The routing layer verifies that incoming SOL corresponds to eligible fee receipts before it is counted as backing; SOL that cannot be verified is not counted.

Asset Backing Pool

The pool is a dedicated on-chain SOL account. Its balance is the numerator of the backing calculation. SOL leaves the pool only through the redemption path.

Backing per token

P = B / S

B = eligible SOL in the Asset Backing Pool
S = circulating $ASSET supply

Redemption mechanics

Redemption never destroys tokens. A wallet's gross claim is its eligible balance times B divided by S, less every SOL it has already redeemed. Redeeming reduces B and the wallet's remaining claim; S is unchanged, so remaining holders are not diluted.

Worked example — growing backing

start   B = 100 SOL, S = 1,000,000,000
        P = 0.0000001 SOL

+50 SOL of eligible creator fees
        B = 150 SOL, S = 1,000,000,000
        P = 0.00000015 SOL   (+50%)

Worked example — redemption without burning

eligible 10,000,000 $ASSET of S = 1,000,000,000  → 1%
pool     B = 100 SOL   → gross claim 1.00 SOL
redeem   0.10 SOL      → already redeemed 0.10 SOL

pool grows to 120 SOL  → gross 1.20, available 1.10 SOL
pool falls to  80 SOL  → gross 0.80, available 0.70 SOL
token balance unchanged throughout