SIPHER VAULT
The Sipher Vault plays a crucial role in cultivating a self-sustaining ecosystem, directly linking $SIPHER to the overall health and success of the Sipher AGI ecosystem and all of its products by aligning incentives and empowering ecosystem participants to influence ecosystem growth.
During the initial phases after the Vault’s inception, the Core Contributors and its advisors will act on behalf of the Sipher AGI ecosystem to the best of their ability, utilizing Vault funds in a way that promotes ecosystem growth and increased Vault inflows. If the team successfully performs these duties and thereby results in a surplus of Vault funds, then these excess tokens shall be burned and/or reinvested into the ecosystem.
Once the governance process is activated, stakers of $SIPHER or LP tokens can participate in the governance process to help manage the Vault, including the allocation of Vault Outflows (spending) each season, and determining whether to reinvest and/or burn Vault surpluses.
Components of the Vault
Vault Reserves
The Vault acts as a reserve of all released (minted) $SIPHER tokens. More specifically, we target that around 20% of the value of the $SIPHER Total (minted) Supply should be stored in the Vault at the start of each season.
A portion of tokens from the “Community Incentives & Marketing” and “Ecosystem Treasury” categories may be used to kickstart the Sipher Vault and support its operations over time, following their respective vesting schedules.
Additionally, the Vault will receive continuous funding in the form of Vault Inflows, which will help enable sustainable spending (Vault Outflows) for initiatives that benefit the ecosystem. See the Vault Inflows and Vault Outflows sections below for more information.
Vault Inflows
Vault Inflows are considered the Vault’s income or revenue, providing a continuous source of funds that allows it to remain operational over time.
The primary sources of inflows to the vault include value accrued from all Sipher AGI ecosystem products, on-chain royalties & commissions from marketplaces & platforms, $SIPHER spent by users, and token emissions. Inflows received in other currencies shall be converted into $SIPHER via periodic buybacks, as applicable.
📌 Visit Vault Inflow Sources to learn about all inflow sources.
Vault Outflows
Vault Outflows enable the ecosystem’s growth and success by distributing funds that incentivize ecosystem participation from users, creators, guilds, contributors, asset and token owners, and more. Outflows enable a self-sustaining cycle—incentives promote engagement, retention, and spending, which leads to more inflows.
Each season, a projected 25% of the Vault’s balance can be used for this purpose. This spendable portion can be allocated to categories including community rewards, marketing incentives, and other initiatives that encourage ecosystem growth.
📌 Visit Vault Outflow Categories to learn more about Vault outflow categories.
Vault Surpluses
When the Vault accumulates more than the 20% target due to a thriving ecosystem, the tokens exceeding said target percentage will be considered a “surplus”. A portion or the entirety of each token surplus will be burned, leading to a deflationary environment, with any remaining tokens re-invested into the ecosystem and IPs.
Vault Governance
The Vault’s governance model fosters a shared approach where the Core Contributors and ecosystem participants play a role in influencing the path of the ecosystem.
This governance module shall be activated after an initial development and growth period, where the Sipher Vault will undergo several seasonal funding cycles to nourish and establish the ecosystem. While the length of this period is currently undetermined, the latest at which it can be completed would be when 75% of the total $SIPHER supply has been distributed. However, governance may be activated sooner if development progresses as planned.
In the interim, the Core Contributors and its Advisors will act on behalf of the Sipher AGI ecosystem to the best of their ability while communicating high-level projected & actual fund spending allocations, and any resulting surplus.
Once active, participation in the Vault’s governance will be available to $SIPHER and LP token stakers, and Dual-pair Liquidity Providers.
Participants will help determine the following:
- The Allocation of Vault Outflow Categories
- Management of seasonal Vault surpluses
Governance participants may vote to decide where to allocate the spendable portion of Vault funds each season.
See Vault Outflow Categories for more information.
For each Vault surplus, governance participants may decide whether to burn and/or reinvest into Ather ecosystem IPs and products as incentives.
Note: The governance process will follow a quadratic voting system where the number of votes each token holder receives is proportional to the square root of the number of tokens they hold. This prevents a single large holder from dominating governance decisions and gives smaller holders a stronger voice, promoting balanced outcome representation for all stakeholders.