Tokenomics – Total Supply, Allocation, and Flow

The SUDO token serves as the economic backbone of the Sudo Web3 Messaging Platform. Its tokenomics are built for utility-driven demand, deflationary supply mechanics, and long-term sustainability. With strict supply caps, no uncontrolled inflation, and revenue-linked burn mechanisms, SUDO aligns platform adoption directly with token value appreciation.

1. Total Supply

• Fixed Supply: 100,000,000 SUDO tokens.

• No Inflation: No minting beyond the initial allocation.

• Non-Mintable Contract: The token smart contract is immutable, with auto-burn functions embedded for certain transactions.

This guarantees that circulating supply can only decrease over time through platform-driven burns.

2. Initial Allocation

Category	Allocation	Description
Liquidity Pool (DEX Listing)	10% (10M)	Paired with 10,000 USDT for initial DEX listing; LP tokens burned to lock liquidity.
Reward Mining Pool	40% (40M)	Allocated for message mining rewards and referral incentives.
Ecosystem Growth	20% (20M)	Reserved for marketing, ecosystem grants, partnerships, and CEX listings.
Team & Advisors	10% (10M)	12-month cliff followed by 18-month linear vesting to ensure long-term alignment.
Reserve Fund	10% (10M)	Held for emergency liquidity and protocol upgrade costs.
Development Fund	5% (5M)	Used for infrastructure scaling, feature development, and security audits.
DAO & Governance	5% (5M)	Unlocked post-Phase 3 to empower community governance and voting.

This allocation prioritizes community rewards and growth, with over 60% of tokens dedicated to adoption incentives and ecosystem expansion.

3. Utility-Based Token Flow

The SUDO token economy is sustained by recurring demand drivers directly tied to platform usage.

Incoming Demand Sources:

• Microtransactions: Stickers, message boosts, and featured group promotions.

• Message Mining: Hourly buy-and-reward model (e.g., 2 USDT/hour allocated for rewards).

• Username Purchases: Paid premium usernames (1–6 characters, branded names).

• Smart Contract Linking: Auto-onboarding of eligible wallet users to groups/channels.

• Group Video Calls: Paid Zoom-style encrypted group meetings.

4. Burn Mechanism

SUDO’s burn structure ensures a consistent reduction in supply with every transaction:

Event	Burn %	Description
Hourly Auto-Buy	50%	Half of the $4–$10 USDT/hour auto-buy is burned.
Username Fee	100%	100% of collected fees converted to SUDO and burned.
Contract Linking Fee	100%	$10 fee fully swapped to SUDO and burned.
Zoom-like Feature Access	50%	Half of collected access fees burned.

5. Inflation Control

SUDO avoids unsustainable emission models:

• No Staking/Yield Farming: Prevents artificial inflation and token dumping.

• Pre-Allocated Rewards: All incentives come from the fixed reward pool.

• Adaptive Reduction: As the reward pool depletes, mining incentives gradually decrease, further tightening supply.

6. Deflationary Flywheel

Every utility in the Sudo ecosystem follows a three-step deflationary process:

1. USDT Inflow: Platform transactions generate USDT revenue.

2. SUDO Auto-Buy: USDT is used to buy SUDO from the open market.

3. Burn & Reward: The majority of purchased tokens are burned, with a smaller portion allocated to rewards or operational costs.

Result:

• Rising demand from active platform use.

• Falling circulating supply from continuous burns.

• Natural upward price pressure on SUDO tokens.