Reward Distribution Layer

Value Emission and Value Absorption in the Protocol.

Silent Protocol operates through a dual-stage reward distribution mechanism: value emission and value absorption.

Value Emission

In the value emission stage, the protocol distributes GHOST tokens, which users can claim by depositing specific assets into the protocol. Each qualifying asset earns a fixed amount of GHOST tokens as a reward, determined by the protocol’s predefined rules. To maintain balance, the protocol enforces a Total Value Locked (TVL) cap, restricting the maximum number of GHOST tokens that can be emitted at any given time. Paired with the deflationary nature of GHOST, this mechanism incentivizes users to hold and accumulate GHOST tokens, as their value is designed to increase over time.

Value Absorption

Value absorption forms a cornerstone of Silent Protocol’s Protocol-Owned Yield (POY) architecture. Users can stake their GHOST tokens to earn SHHHHHHH tokens, unlocking this process. The protocol leverages yield generated within the system to purchase SHHHHHHH tokens from the open market. These tokens are then permanently burned, reducing the circulating supply and transferring value to SHHHHHHH token holders.