VAULT INFLOW SOURCES
Vault Inflows are critical to the Sipher Vault, providing a continuous and diversified stream of revenue to ensure its long-term sustainability.
These inflows fuel a powerful, self-reinforcing cycle: growing revenue not only strengthens the Vault's reserves but also amplifies the incentives ($SIPHERrewards) distributed to ecosystem participants, creating a virtuous loop of growth and engagement.
The primary sources of inflows to the Vault include:
1. VALUE ACCRUED FROM ECOSYSTEM PRODUCTS
Considered one of the larger sources of inflows for the Vault, a portion of all value generated from all Sipher AGI ecosystem products, features, and experiences is directly deposited into the Vault.
An initial earmarked X% of the value generated across the ecosystem is captured as Protocol Revenue and distributed to the Sipher Vault.
*Protocol Revenue is determined after taxes, costs, and payment fees.
- Deposited into the Vault in USDT/USDC and/or other denominations that will adapt over time and shall be converted into $SIPHER periodically.
- This initial X% is earmarked to allow for sufficient investment in the core foundations to build a stronger ecosystem of products.
2. TRADING FEES, COMMISSIONS, AND ROYALTIES
Our approach to user-driven economies enables the buying and selling of assets with other market participants across the Sipher AGI ecosystem. This type of economy unlocks another avenue for players to increase their competitive edge, build and trade their dream AI companions, or accelerate their progress in various ecosystem experiences.
All marketplace transactions will incur a mandatory royalty fee, comprising 0.5% of the total trade value. All revenue generated from royalties and fees will accrue to the Sipher Vault.
Note: To maintain a healthy balance, the royalty percentage on secondary marketplaces may dynamically adjust based on the Sipher Vault's holdings relative to the total $SIPHER supply. Once the Vault reaches 20% of the total $SIPHER supply, the royalty percentage will fluctuate within predetermined ranges. A lower Vault ratio, compared to the 20% target, will trigger a higher royalty percentage to bolster the Vault's reserves. Conversely, a higher Vault ratio will result in a reduced or baseline royalty percentage, ensuring the system remains fair and adaptable to market conditions.
3. $SIPHER UTILITIES
100% of net earnings from $SIPHER utilities accrue into the Vault as inflows.
$SIPHER can be used throughout the Sipher AGI ecosystem’s games, AI experiences, and products, providing exclusive use cases that accrue to the Sipher Vault.
These use cases help support the reinforcing cycle of Vault Inflows ←→ Vault Ouflows, meaning players and users are incentivized to spend $SIPHER to increase their potential $SIPHER rewards.
All $SIPHER utilities can be found at Token Circulation Model.
4. TOKEN EMISSIONS
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.