SHHHHHHH Tokenomics

Emission Model

Token Contract Address: TBD

Network: Ethereum

Ticker: SHHHHHHH Fair Launch

Initial Supply: 500,000 (used to seed liquidity pools)

Max Supply: 300,000,000

Supply Range (SHHH Tokens)

Annual Inflation Rate (BPS)

APY (%)

≤ 5,000,000

110,000 BPS (1100%)

1100.00%

≤ 10,000,000

80,000 BPS (800%)

800.00%

≤ 50,000,000

70,000 BPS (700%)

700.00%

≤ 75,000,000

50,000 BPS (500%)

500.00%

≤ 100,000,000

40,000 BPS (400%)

400.00%

≤ 150,000,000

35,000 BPS (350%)

350.00%

≤ 250,000,000

30,000 BPS (300%)

300.00%

> 250,000,000

10,000 BPS (100%)

100.00%

Sustainable Growth and Scarcity

The SHHHHHHH token is designed to represent the yield generated by the protocol, with an emission rate tied to supply dynamics and a deflation mechanism influenced by GHOST circulation. This creates a counterbalancing system aligned with protocol performance:

  • As Total Value Locked (TVL) increases, the circulating supply of GHOST grows, reducing the deflation rate of SHHHHHHH and increasing its total supply. This locks value into the hands of early contributors who benefit from higher reward rates.

  • Conversely, a decrease in TVL (and thus GHOST supply) increases the deflation rate, lowering the inflation rate of SHHHHHHH and mapping its supply expansion to the protocol’s economic output.

The reward structure operates on two axes:

  • X-Axis (Time): Rewards decrease as the circulating supply of SHHHHHHH grows over time.

  • Y-Axis (GHOST Supply): The deflation rate adjusts based on GHOST circulation, which reflects TVL in productive assets. A drop in GHOST supply accelerates SHHHHHHH deflation, boosting its emission rate temporarily.

This dual mechanism ensures SHHHHHHH captures all protocol yield while rewarding users in a deflationary manner, balancing time and economic output.

Emission Strategy: A Novel Model

Shhhhhh is a rebasing, dynamic token influenced by:

  1. Time: The protocol aims to distribute approximately 60% of the total supply to early depositors within the first year, incentivizing early participation. The emission rate decreases as the supply grows.

  2. TVL Growth (GHOST-Denominated): The supply of SHHHHHHH contracts based on the total GHOST in circulation. As GHOST supply increases, the deflation rate decreases; as it drops, deflation intensifies. This makes SHHHHHHH scarcer over time, enhancing its value.

The token becomes scarcer over time as its inflation rate decreases. However, if the number of GHOST tokens in circulation increases, the deflation rate of SHHHHHHH rises, making the protocol overall deflationary and enhancing the token’s value. These dependencies make SHHHHHHH an ideal driver of growth within the ecosystem.

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