Issuance Lifecycle

NAKA progresses through five observable phases. The first four are buy-driven and play out the first time the curve fills; the fifth is the long-run steady state, an indefinite deflation cycle. Every transition is deterministic — driven by totalMintedFair and the circulating-supply checks inside the hook. There is no manual switch, no admin trigger, no off-chain decision.

Phase 1. Genesis (0 → ~70 ETH cumulative)

• Initial price: p(0) = S/K = 100 / 21,000,000 ≈ 4.76 × 10⁻⁶ ETH/token.
• For the first 100 blocks after deployment, an entropy multiplier (uniformly random in 0.9×–1.1×, seeded by block.prevrandao + msg.sender + GENESIS_HASH) is applied to the user's mint amount. Curve state advances by the fair amount only — entropy bonuses do not move the curve forward, they just move tokens.
• Supply rises rapidly: at 70 ETH cumulative input, ~50% of K is already minted.
• Buyers in this phase pay the lowest absolute prices the curve will ever offer.

Phase 2. Mid Curve (~70 → ~230 ETH cumulative)

• Supply grows from 50% → 90% of K.
• Marginal price rises from ~1.3 × 10⁻⁵ to ~4.8 × 10⁻⁵ ETH/token (≈10×).
• Buy size has more impact here than in Phase 1 because the curve is still in its steep region.
• The entropy window is closed (after block 100). All mints are pure curve math.

Phase 3. Late Curve (~230 → ~460 ETH cumulative)

• Supply grows from 90% → 99% of K.
• Marginal price rises from ~4.8 × 10⁻⁵ to ~4.7 × 10⁻⁴ ETH/token (≈100× from initial).
• Per-buy yield in tokens-per-ETH falls steeply.
• Around 460 ETH cumulative input, circulating supply hits 99% × K and the buy that crosses the line flips selfDeprecated = true.

Phase 4. First Deprecation (selfDeprecated = true)

• buyNaka reverts with SelfDeprecatedNoBuys. New issuance is paused.
• Sells continue: redemptions, burns, and reserve payouts all keep working.
• Cumulative DEAD balance grows from continuing sell-side fees.
• The pause holds until sells push circulating below 95% × K.

Phase 5. Reactivation Cycle (steady state)

• A sell that drops circulating below 95% × K flips selfDeprecated back to false and emits Reactivated.
• New buys are accepted at the lower curve level. The next buy that pushes circulating back across 99% × K re-deprecates.
• The protocol oscillates between deprecated and active forever, with the DEAD balance accumulating monotonically.
• Total ever-existing supply can grow without bound; circulating supply is permanently capped near 0.99 × K. The floor price (reserve / circulating) ratchets up across cycles.

Visualizing Phases on the Live Chart

The chart at naka.exchange shows:

• The full supply curve from 0 to 660 ETH on the X axis.
• The asymptotic cap line at 21,000,000.
• A live marker at the current cumulative ETH position (ethAtSupply(totalMintedFair)).
• A green dotted vertical at ~300 ETH marking the 95% reactivation threshold.
• A red dotted vertical at ~460 ETH marking the 99% deprecation threshold.
• A faint red shaded band between them — the deprecation cycle zone.
• An "initial price" annotation at the curve origin.
• A live status pill below the chart showing whether the curve is active or deprecated, and the current circulating headroom in tokens.