Token Utility, Fees, and Burn Mechanisms
Last updated
Last updated
The $SUDO token is the economic core of the Sudo ecosystem. It is far more than a simple messaging incentive — it is a multi-utility token that powers features, governs ecosystem operations, and enforces continuous deflationary pressure through integrated burn mechanisms. This design ensures that SUDO creates real demand, distributes rewards sustainably, and achieves price appreciation without artificial inflation.
The SUDO token underpins all premium actions and services within the ecosystem:
Message Mining Rewards: Users earn SUDO tokens for sending or receiving verified, meaningful messages that pass quality filters.
Username Registration: Exclusive 1–6 character usernames require payment in SUDO and are renewable annually.
Smart Contract Channel Creation: Projects pay an equivalent of 10 USDT in SUDO to sync their smart contracts with groups or channels.
MiniApp Transactions: All in-app purchases, game rewards, utilities, and tool access within Sudo are settled in SUDO.
Zoom-Style Meetings: Group creators pay in SUDO to host premium encrypted video and audio calls.
Group/Channel Creation at Scale: After five free group creations, each additional group requires payment in SUDO.
Gas Fee Integration (Future): On zk-enabled chains, premium network actions will be payable directly in SUDO.
SUDO’s deflationary model incorporates multiple burn channels to ensure long-term scarcity:
Hourly Buyback: Every hour, between 4–10 USDT worth of SUDO is purchased from DEX liquidity and burned, with a portion redirected to the reward pool.
Username Fees: 100% of payments for premium usernames are used to buy and burn SUDO.
Smart Contract Sync Fees: The full 10 USDT fee for linking a smart contract to a group or channel is converted to SUDO and burned.
Group Upgrades & MiniApps: A portion of every in-app purchase for group enhancements or MiniApps is burned immediately.
Unclaimed Rewards: Tokens earned through message mining but not claimed within 30 days are automatically burned.
The distribution of platform-generated value follows a balanced reward-burn structure:
From hourly DEX buys (e.g., 10 USDT), 70% of the value is burned while 30% funds the reward pool.
Username purchases are allocated entirely to burning with no portion entering the reward pool.
Group/channel creation fees and smart contract sync fees are fully burned.
MiniApp-related fees split evenly between burns and rewards.
Future marketplace transactions will allocate between 20–40% to burns and the remainder to rewards.
Sudo’s economy avoids inflationary practices by ensuring all token emissions are activity-funded rather than mint-funded:
No unlocked developer allocations to dump on the market.
No minting beyond the fixed genesis supply.
Circulating supply grows only through mined tokens earned by platform participation.
Continuous DEX auto-buys ensure deflationary pressure while creating utility-driven demand.
Several factors combine to ensure long-term upward price pressure for SUDO:
DEX Auto-Buy + Burn: Constant liquidity buys and burns increase the floor price over time.
Fixed Total Supply: Guaranteed scarcity as burns reduce circulating supply.
No External Sales: 100% of circulating tokens are community-earned through usage.
Utility-Driven Rewards: Every reward token is backed by actual economic activity.
Activity-Based Demand: More users, messages, and integrations increase token velocity and demand.