# Tokenomics

#### Tokenomics <a href="#id-6pa6nqlfv016" id="id-6pa6nqlfv016"></a>

Rooted in the core principles of Web3 and its security innovations, we are building a movement towards community-driven and transparent digital asset offerings. Leveraging our backgrounds in providing enterprise-grade security solutions and being involved in over $50M USD worth of crypto asset investigations and recovery cases, we have constantly been thinking on how to democratize this for the average retail user. By seeding our community with tokens, we are not just launching a product; we are starting a movement. This token offering is designed to foster growth, engagement, and collective ownership, setting new standards for legitimacy and transparency in the ecosystem. Our commitment is to lay the foundations for a community-owned framework that champions security, trust, and shared alignment with sustainable success in the long run.

We will introduce different uses of the token in this section, though in general, tokens can be used to pay for services of the AI at a discount to paying with fiat currency. Furthermore, a portion of the funds used to pay for services will be split up to:

* Cost of the services
* DAO operating revenue
* RPFG funding pool (5-20% based on DAO governance)
* Service provider / Partner pool

Usage of the AI can be made via direct payments (fiat or our token) or via staking (explained below).

We introduce a new innovative staking model where token holders can stake tokens for premium benefits of services and AI’s overall usage, as well as stake tokens for a new partner’s services to be integrated into the AI and receive rewards based on that partner’s usage in a partner pool.

Full Premium benefits will include (we will create tiered benefits later):

* All tools free access
* Excess credits to be used per month
* DAO votes
* Validator votes
* Ability to add knowledge to the knowledge layer to be voted on
* Ability to nominate partners or service providers to be added
* Warranty on recovery services

Staking for a partner pool:

* Revenue share of partner’s services
* Portion of RPFG rewards for the partner will go to the pool

Every time tokens are used to pay for services of the AI, a portion of the used tokens are burned.

Every quarter the DAO will understand the usage of different partners and how large their pools are. From there they will be ranked by equivalent dollar value usage and size of pool, and then normalized by the sum of all the other pools multiplied by usage. The ratio is then the qualified entitled rewards proportion of rewards that the stakers in the pool can obtain.

i.e. (AI recorded usage of partner x tokens amount staked in pool) / sum of all ($ usage of partner x $ amount staked in pool) = % proportion of RPFG allocation to partner pools

Each pool will have a max. limit based on the scope of services for the pool

![](https://4216998145-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FTzCgAR3kthoNIZKLikjm%2Fuploads%2FN4qnECVFi3qyWHmSAEgF%2F10.png?alt=media)

Fig 11: Overall token Flow

Above is a token flow for someone who uses the AI and the split on usage of those tokens.

If stakers are using the service as part of premium benefits, then the DAO will pay for AI computation and service provider fees on behalf of the stakers but there will be no rewards going to RPFG or provider pools, since staked tokens is inherently beneficial for the token value and ecosystem.

The foundation of this offering is an initial token supply of 750 million tokens with a maximum supply of 1 billion tokens, allocated across various segments to ensure a balanced and strategic distribution that aligns with the project's long-term vision and operational needs. Each year, the DAO can vote to increase or decrease the supply of tokens by less than 10% but only to a maximum of 1 billion tokens.

**Proposed Token Distribution Details at Initial Distribution:**

<table data-header-hidden><thead><tr><th width="250"></th><th></th><th></th></tr></thead><tbody><tr><td><strong>Allocation</strong></td><td><strong>% Allocation</strong></td><td><strong>Vesting</strong></td></tr><tr><td>Token Sale</td><td>15%</td><td>12 months cliff then monthly unlock over 12 months</td></tr><tr><td>Partner Incentives</td><td>5%</td><td>6 months cliff then monthly unlock over 12 months</td></tr><tr><td>Staking Pool</td><td>15%</td><td>Unlocked as tokens are staked</td></tr><tr><td>Network Rewards</td><td>30%</td><td>Unlocked as network tasks are completed</td></tr><tr><td>Community  Incentives</td><td>5%</td><td>No lock up</td></tr><tr><td>Foundation Strategic reserves</td><td>10%</td><td>3% unlocked at TGE, then monthly unlock over 36 months</td></tr><tr><td>Development Co. Operations</td><td>5%</td><td>3% unlocked at TGE (IP Transfer), then monthly unlock over 36 months</td></tr><tr><td>Initial Founding Team and Advisors</td><td>15%</td><td>12 month cliff then vesting over 24 months</td></tr></tbody></table>

#### &#x20;<a href="#auullgbs01ac" id="auullgbs01ac"></a>


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