Tokenomics

Like Bitcoin, the current design call for the M3 to have a permanently fixed supply of 21 million tokens, ensuring scarcity as a fundamental principle. This design preserves long-term value integrity while integrating additional features that enhance liquidity and transaction efficiency.

Current research suggests that for stability, the theoretical starting design should follow a structured approach. To ensure orderly token distribution, liquidity will likely be introduced in a centralized, phased manner. This experimental process is designed to study token circulation mechanics, facilitate smooth distribution, mitigate supply shocks over time, and evolve an optimal design.

Here is the prelimary economics for the test token. This design will be reviewed and analyzed for viability.

Tokenomics & Distribution Plan

Total Token Supply: 21,000,000

1. Creators & Community Incentive Pool (Locked & Vesting)

   • Total Allocation: 9,400,000 tokens

   • Initial Unlock at TDE: 0 tokens

   • Lock-Up Duration: 3 months

   • Unlock at Cliff: 10% of the allocation

   • Remaining Unlock Schedule: Over 24 months, unlocked monthly and evenly distributed via daily automated scripts, ensuring consistent and transparent daily releases.

   • Supports Staking? Yes, if the design warrants, staking rewards can be distributed within the same vesting schedule while being locked.

2. Treasury (Locked & Vesting)

   • Total Allocation: 6,300,000 tokens

   • Initial Unlock at TDE: 0 tokens

   • Lock-Up Duration: 12 months

   • Unlock at Cliff: 25% of the allocation

   • Remaining Unlock Schedule: Over 24 months, unlocked monthly and evenly distributed via daily automated scripts, ensuring consistent and transparent daily releases.

3. Public Distribution & Liquidity (Unlocked at TDE)

   • Liquidity Pool: 2,100,000 tokens (fully unlocked at TDE)

   • Public Distribution: 3,200,000 tokens

     • Immediate Release: 3,200,000 tokens at TDE

     • Discretionary Release: 2,100,000 will be distributed to help maintain accessibility and mitigating sudden market spikes. Any release will not exceed 100,000/day.

   • Total Initial Circulating Supply at TDE: 5,300,000 tokens (~25.2% of total supply)

Proposed: M3 Unlock Schedule

Token Unlock & Circulation Schedule

• At TDE: 5,300,000 tokens will enter circulation (Liquidity + Public Distribution)

• After 3 months: Creators & Community Incentives start unlocking (10% cliff unlock, then daily)

• After 12 months: Treasury unlocks 25% at cliff, then continues daily unlocks over 24 months.

• Full unlock period: Complete token release happens over a 3-year period.

Structured Liquidity and Market Dynamics Exploration

As part of this experiment, we will explore the roles of market makers and other entities in supporting liquidity and their impact on overall market operations. This research will help us better understand how different participants contribute to market efficiency, price stability, and long-term sustainability.