Tokenomics
A performance-based framework designed for sustainable growth
1. Overview
This tokenomics framework is designed to align the long-term interests of the OutbackJack AI project, its community, and its investors. The framework introduces a performance-based token unlock mechanism that balances fundraising needs with market stability, incentivizing both the team and the community to build sustainable value over time.
2. Initial Token Distribution
Token Generation Event (TGE):
Unlocked Tokens at TGE: 10% of the total token supply will be unlocked and sold on the open market.
Utilization of Proceeds:
- Product development and platform build-out
- Marketing initiatives
- Team salaries and operational expenses
- Strategic partnerships and ecosystem growth
3. Future Unlock Mechanism
Future token unlocks will adhere to the following rules to ensure controlled release and market stability:
3.1 Unlock Interval
Time-Based Requirement: Additional tokens can be unlocked only after a minimum period of six months following the previous unlock event.
3.2 Price Performance Condition
Market Performance Requirement: An unlock event is permitted only if the token price has consistently maintained a value of at least 2x the previous unlock price for a continuous period of 30 days immediately before the unlock date.
3.3 Unlock Cap
Percentage Limit: During any eligible unlock event, a maximum of 5% of the total token supply can be released into circulation.
4. Illustrative Example
Consider the following scenario to illustrate the unlock mechanism:
TGE Details:
- Date: January
- Price at TGE: $1 per token
- Unlocked Supply: 10% of total tokens
First Unlock Opportunity:
- Earliest Date: July (six months after TGE)
- Price Requirement: The token price must have sustained above $2 (2x the TGE price) continuously for at least 30 days.
- Outcome: If the price condition is met (e.g., the token maintains a price above $2 from July 4 to August 3), then up to an additional 5% of the total tokens can be unlocked on August 3.
- Assume the price on the unlock date is $3.
Subsequent Unlocks:
- Next Eligible Unlock Date: March of the following year (six months after the previous unlock)
- Price Requirement: The token price must remain above $6 (2x the previous unlock price of $3) for at least 30 consecutive days immediately before the unlock date.
5. Governance and Control
Team Discretion:
- The project team retains the discretion to delay or reduce the size of each unlock event based on strategic needs or market conditions.
- However, the team is not authorized to modify the minimum six-month interval or exceed the 5% cap per unlock.
Smart Contract Enforcement:
- All future unlock events will be governed by a smart contract.
- Third-Party Control: The keys to this smart contract will be held by an independent, trusted third party to ensure transparency and prevent any unauthorized modifications or early unlocks.
6. Rationale and Benefits
Market Stability
The controlled and conditional release of tokens prevents large volumes of tokens from entering the market during periods of low demand, reducing volatility.
Incentivized Long-Term Growth
By linking token unlocks to sustained price performance, the framework motivates the team to focus on long-term value creation and disciplined execution.
Transparency and Trust
The smart contract mechanism and third-party oversight enhance community trust by ensuring that token issuance follows predefined, transparent rules.
Community Alignment
The model aligns the interests of investors, community members, and the project team, as the gradual release of tokens is directly tied to the project's market performance and overall success.
7. Conclusion
This tokenomics framework is designed to create a robust foundation for the OutbackJack AI project. By implementing a controlled token unlock mechanism that ties supply expansion to market performance, the project is well-positioned to sustain long-term growth while safeguarding investor value and promoting community trust.