Tokenomics — Design Philosophy, Allocation, and Utility
PreviousMiniApps & Bot Ecosystem — Extending Sudo like Telegram for Web3NextDynamic Burn Economics & Scarcity Simulation Model
Last updated
Last updated
The SUDO token is the economic backbone of the Sudo ecosystem. It is designed to incentivize participation, maintain economic sustainability, and create a self-reinforcing feedback loop between platform usage, user growth, and token value.
The SUDO token serves multiple interconnected functions:
Utility: Used to access premium features such as exclusive usernames, group and channel creation, Zoom-style meetings, and advanced community tools.
Reward: Distributed through Message Mining, referral programs, and bot or MiniApp interactions.
Governance: Will provide voting rights for future community-led proposals and protocol changes.
Burn Mechanism: Implements scarcity via a buy-and-burn model tied directly to platform usage.
The total supply of SUDO is fixed at 100,000,000 tokens, with no possibility of future minting. All tokens are pre-minted and strategically allocated to support long-term growth and adoption.
The supply is distributed across key categories to balance ecosystem incentives, liquidity, and strategic growth:
Message Mining Pool (35%): Dedicated to rewarding users for sending and receiving quality messages that pass the Proof-of-Message (PoM) algorithm.
Community Growth (10%): Airdrops, early adoption incentives, and gamified engagement tasks.
Liquidity Pool (10%): Initial pairing with 10,000 USDT on DEX; 90% of LP tokens permanently burned to ensure liquidity security.
Team & Advisors (10%): Locked for 12 months and vested over the following 24 months to align long-term incentives.
Treasury Reserve (10%): Maintained as an emergency buffer and to fund ecosystem grants.
MiniApp & Developer Incentives (10%): Rewards for developers creating bots, MiniApps, and plugins that drive adoption.
Partner Integrations & Exchanges (5%): Funding for CEX listings and strategic collaborations.
Username Economy Burn Fund (5%): Funds for buying and burning tokens from premium username purchases.
Contract Sync & Group Registry (5%): Fees collected when new smart contracts are attached to Sudo groups, fully used for buy-and-burn.
The token economy is designed around usage-based value cycling:
User Activity → Message Mining Reward Pool: Every verified message interaction funds rewards from the mining allocation.
Username Purchases → Buy & Burn: 100% of payments for premium usernames are converted to SUDO and burned.
Smart Contract Group Sync → Buy & Burn: Each group or channel contract attachment fee (10 USDT) is converted to SUDO and burned.
MiniApp & Bot Usage Fees → Burn or Treasury: Depending on configuration, a portion goes to the treasury and the rest is burned.
SUDO employs continuous and event-driven burns to enforce scarcity:
Hourly Auto-Buy: $10 USDT worth of SUDO purchased from DEX each hour; 70% burned, 30% directed to the reward pool.
Username Fees: 100% converted to SUDO and burned.
Smart Contract Registration: Flat 10 USDT fee per contract, fully converted to SUDO and burned.
Voluntary Burns: Users can burn tokens for status, special perks, or premium identity features.
The reward pool is funded primarily from platform usage revenue and the hourly auto-buy system:
30% of the $10 hourly buy is allocated to the reward pool for mining distribution.
Future staking incentives will allocate up to 5% of the treasury reserve, unlocked gradually over 12 months.
Bot and MiniApp interactions distribute dynamic rewards based on verified engagement.
At the baseline hourly buy rate of $10:
Annual buy volume equals $87,600 USDT.
With 70% burned, this equates to $61,320 USDT worth of tokens destroyed annually.
As user base, premium purchases, and smart contract integrations grow, burn volume accelerates.
This supply reduction combined with increasing demand creates upward pressure on token value.