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Tokenomics and Settlement Routing

Metadata Reference
Document ID TP-ECON-001
Revision 3.1
Subject TIMLG MVP economic rules

This page documents the protocol's current economic behavior. It is intentionally limited to what the MVP settles today, how fees are routed, and how future incentive layers should be kept separate from the core round logic.


Economic primitives

Primitive Current interpretation
Stake amount Fixed per ticket, stored in base units (u64)
TIMLG decimals 9 in the current mint configuration, so 1 TIMLG = 1_000_000_000 base units
Round vault Token escrow and routing surface at round scope
Reward minting Happens only on successful claim of a winning ticket
Reward fee Applied to the winning reward if reward_fee_bps > 0

Base units first

The program reasons in base units. Any human-readable TIMLG amount shown in the UI is a presentation layer over the configured mint.


Canonical settlement matrix

Outcome Condition Token path User consequence
WIN Valid reveal and assigned bit matches the guess Stake refund + reward mint on claim Ticket becomes claimable
LOSE Valid reveal and assigned bit does not match Escrowed stake is burned during settlement Terminal loss
NO-REVEAL No valid reveal before deadline Escrowed stake is burned during settlement Terminal expiry
REFUND Oracle failure path and refund gate becomes valid Original stake is returned Safety fallback

What is and is not part of core economics

Included in core protocol economics Explicitly outside core protocol economics
stake escrow token distribution / vesting plan
burn of losses and no-reveals exchange or liquidity strategy
reward mint on claim marketing campaigns
fee on winning reward future leaderboard or streak promotions
sweep / refund / ticket closure semantics off-chain community incentives unless explicitly documented

This distinction matters. It keeps the round logic auditable and prevents promotional incentives from being mistaken for base protocol behavior.


Claim, sweep, and ticket closure

Operation What it does What it does not do
Claim Delivers stake refund + reward mint for a winning ticket Does not close the ticket PDA
Sweep Cleans up eligible unclaimed round-level balances after grace expiry Does not retroactively mint a user's reward
Close ticket Returns the ticket account's rent-exempt lamports to the owner Does not change the economic outcome of the ticket

Supply intuition

For one ticket, the simplified token supply effect is:

Outcome Approximate supply effect
WIN + stake_amount reward minted on claim
LOSE - stake_amount burned during settlement
NO-REVEAL - stake_amount burned during settlement
Unclaimed winner Less minting than the idealized fully-claimed case

If revealed tickets are approximately unbiased around 50/50 and all winners claim, the expectation is near neutral. If winners fail to claim, the system becomes more deflationary than the idealized fully-claimed case.


Fee routing

Fee surface Current role
Reward Fee Pool Receives the configured fee fraction of winning rewards
Treasury SOL Receives service fees and selected lamport cleanup flows

Reward fee formula

let fee = reward_amount * reward_fee_bps / 10_000;
let net_reward = reward_amount - fee;

Future incentive surfaces: streak rewards

Future streak-based prizes can be added without changing core round settlement. That should be documented as a separate incentive layer with its own budget, ranking policy, and claim flow.

Layer Recommended responsibility
Core settlement Decides WIN / LOSE / NO-REVEAL / REFUND
UserStats Supplies counters such as current_streak and longest_streak
Leaderboard policy Defines ranking period, tie-breaks, and eligibility
Prize distributor Makes streak rewards claimable from a dedicated budget

Why this separation is important

Benefit Explanation
Cleaner audits Core settlement remains independent from campaign logic
Easier upgrades Incentive modules can evolve without rewriting the base round model
Better user clarity Users can distinguish protocol settlement from promotional rewards
Better treasury discipline Prize budgets can be accounted for explicitly

Do not mix layers

A future streak campaign should not silently change base ticket settlement rules. It should publish its own documentation, eligibility table, funding source, and claim behavior.


What this page intentionally does not claim

  • that streak rewards already exist in the MVP
  • that UserStats alone is sufficient for dispute resolution without ticket-level verification
  • that treasury balances should be interpreted as user prize balances unless explicitly documented