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docs/protocol/tokenomics

Tokenomics

NAKA has no team allocation, no presale, no airdrop, no advisor unlocks, and no treasury. 100% of the supply is minted through one bonding curve, and 0.30% of every trade is burned to 0xdEaD.

Parameters

ParameterValueMeaning
K21,000,000Asymptotic supply cap
S100Curve steepness (lower S = faster discovery)
Fee30 bps (0.30%)On every buy and every sell
Per-buy cap5 ETHAnti-whale single-tx limit
Min trade1 gweiBelow this the curve math underflows
Self-deprecation99% of KPermanently disables minting

Core Equations

QuantityExpression
Marginal pricep(eth) = (S / K) · exp(eth / S)
Cumulative mintedminted(eth) = K · (1 − exp(−eth / S))
Inverseeth(m) = −S · ln(1 − m/K)

eth is the cumulative net ETH ever paid into the curve, accounting for all buys and all sells. It is a state variable on the hook contract, not a snapshot.

Issuance Milestones

Supply MintedETH Required
50% of K100 · ln 2 ≈ 69.3 ETH
90% of K100 · ln 10 ≈ 230.3 ETH
99% of K100 · ln 100 ≈ 460.5 ETH
99.9% of K100 · ln 1000 ≈ 690.8 ETH

Fee Mechanics

The 30 bps fee is taken in token-space, not ETH-space. On a buy:

  • Total tokens minted by the curve are computed first
  • 30 bps of those tokens are sent to 0xdEaD (permanent burn)
  • The remaining 99.70% goes to the buyer

On a sell, the same logic applies in reverse. The result is that every trade reduces total existing supply by 30 bps of the tokens that pass through it. Reserves do not extract a fee. They only ever hold ETH paid in by buyers, less ETH paid out to sellers.

What This Means

  • Floor only goes up: as supply burns and reserves stay attached, the reserve-backed floor (reserves / existing supply) is monotonically non-decreasing under normal operation.
  • No diluting events: there is no token issued outside the curve. Every NAKA in existence cost real ETH at curve rates.
  • No fee accrual to anyone: the fee burns. There is no team treasury, no liquidity-mining program, no claim flow.