Value Accrual & Burn

Three structural mechanisms drive $POP buy pressure post-TGE. Each is auditable on-chain and governance-adjustable within bounded ranges.

1. Protocol-fee burn

The protocol fee is the share of ad revenue not paid to players as Round rewards:

$$F_t=(1-\beta )\cdot R_t^{\text{ad}}$$

With β = 0.60, the fee is 40% of revenue. From the fee:

• 20% (50% of fee) → $POP burn. Used to market-buy $POP on StonFi / DeDust and send to a burn address.
• 15% (37.5% of fee) → Treasury. DAO-controlled.
• 5% (12.5% of fee) → Stake yield distribution.

Burn math

Suppose annual ad revenue at scale: $50M (corresponding to ~70K MAU at observed unit economics).

• Annual fee: $20M.
• Annual burn buy-pressure: $10M.
• At a hypothetical $POP price of $0.01, this burns 1B $POP/year.
• At full circulating supply of ~5B (mid-vesting), 20% supply is burned per year structurally.

In practice, burn rate decelerates as supply shrinks and price rises — the equilibrium is deflationary but bounded.

2. Stake-to-vote yield

Governance voting requires staking $POP. Stakers earn:

$${\text{yield}}_i=\frac{{\text{stake}}_i\times r_i}{\sum _j({\text{stake}}_j\times r_j)}\times 0.05\times F_t$$

5% of fee distributed quarterly. Reputation-weighting (r_i) means low-reputation stakers earn diluted yield, preventing pure-financial Sybil from capturing all yield.

For a 1% staker with mean reputation, this corresponds to a ~$10K/year yield at $50M ad revenue — a real cash-equivalent yield, not a token-emission illusion.

3. In-game premium utility

Post-TGE, the following in-app purchases are $POP-denominated:

• Season Pass Premium (every 4 weeks)
• Booster items (POP×2, Save Token, Vote Insight, Comeback)
• Exclusive cosmetics
• Guild upgrades
• Tournament entries

In-app purchase revenue is recycled: 50% to Treasury, 50% to burn.

Combined flywheel

User plays Round
     ↓
Ad view ($0.005 per view)
     ↓
60% → prize pool (Round t survivors)
40% → fee bucket
        ↓
        ↓ 20% → market-buy $POP → BURN (deflationary)
        ↓ 15% → Treasury (DAO disbursements)
        ↓  5% → stake yield (rewards governance participants)

User buys Premium Season Pass (post-TGE, in $POP)
     ↓
50% → Treasury
50% → BURN

$POP supply ↓, stake yield ↑, governance value ↑
     ↓
Users with conviction hold and stake
     ↓
Network effect strengthens

What this is not

This is not a "ponzi tokenomics" where new buyers fund existing holders. The funding source is real ad revenue from real advertisers. The token mechanics decide who captures that revenue (stakers, burners, builders) — but they do not generate the revenue.

DAO-governable parameters

• β (prize-pool ratio): default 0.60, bounded [0.40, 0.80].
• Fee allocation split between burn / Treasury / stake yield: default 50/37.5/12.5, bounded.
• In-app purchase recycling ratio: default 50/50 (Treasury / burn).

See Governance → Parameters for the full table.