📘 Growth & Expansion
The phase where buybacks safely begin, staking becomes more rewarding, and the ecosystem transitions from foundation → expansion.
Phase 2 activates only when Phase 1 safety thresholds are met. At this stage, Rogue AI’s liquidity is deep enough to enable controlled buybacks, scaled rewards, and broader ecosystem growth.
4.1 Phase 2 Objectives
Phase 2 focuses on:
✔ Responsible activation of buybacks
✔ Increasing staking incentives
✔ Maintaining strong liquidity
✔ Scaling reward systems
✔ Supporting platform expansion
✔ Preparing the system for deflationary maturity
This is the growth engine phase.
4.2 Revenue Allocation — Phase 2
Team Compensation
25%
Treasury Fund
15%
Protocol-Owned Liquidity (POL)
15%
Node Rewards
8%
Staking Rewards
20%
Buyback & Lock
17%
Buybacks activate here for the first time.
4.3 Controlled Buyback Activation
In Phase 2, Rogue AI begins market buybacks with 17% of monthly revenue.
These tokens are:
Bought from open markets
Permanently locked in the protocol vault
Removed from circulation
Key benefits:
Creates long-term scarcity
Accumulates protocol-owned supply
Boosts token stability
Strengthens staking and node value
Phase 2 is engineered so buybacks cannot cause slippage spikes or instability.
4.4 POL Continues Building at 15%
Liquidity remains deeply reinforced. POL receives 15% of monthly revenue, ensuring:
Trading stability
Low slippage
Safer buybacks
Strong investor confidence
Even as buybacks activate, liquidity remains prioritized.
4.5 Reward Structure Evolution
Node Rewards — 8%
Still premium, still above staking in ROI terms. Node rewards naturally become more valuable as the ecosystem grows.
Staking Rewards — 20%
Staking allocation doubles from Phase 1.
Benefits:
More tokens locked
Higher participation
Lower circulating supply
Stronger community stability
Combined with buybacks, staking becomes extremely attractive.
4.6 Team & Treasury Adjustments
As stability increases:
Team allocation adjusts to 25%
Treasury reduces to 15%, still robust
The system begins shifting from building → expanding while preserving core funding.
4.7 Phase 2 Safeguards (v2.0 Updates)
Several new safety systems activate in Phase 2:
4.7.1 Buyback Throttle
Buybacks automatically slow if:
> 3% of circulating supply would be removed in a single month.Excess is diverted to:
POL
Treasury Reserves
(See Chapter 8 for full diagram.)
4.7.2 Circulating Supply Protection
If circulating supply falls below:
40% → Buybacks reduce 25%
25% → Buybacks reduce 50%
15% → Buybacks pause
This ensures sustainable deflation.
4.7.3 POL Cap Monitoring
If POL exceeds:
$30M liquidity depthOverflow is rerouted:
50% Buyback & Lock
50% Treasury Reserve
(Full diagram in Chapter 14/15.)
4.8 Phase 2 → Phase 3 Transition Requirements
Phase 3 only activates when:
POL > $20M
Buyback slippage < 1%
Treasury at/near 10% supply cap
2 months of revenue growth
Circulating Supply ≥ 30%If circ. supply is below 30%, Phase 3 is BLOCKED.
4.9 Summary — Why Phase 2 Matters
Phase 2 is where Rogue AI becomes a real economic engine:
✔ Buybacks begin
✔ Liquidity remains deep
✔ Staking becomes powerful
✔ Nodes remain premium
✔ Treasury remains secure
✔ Deflation begins (controlled and safe)
This sets the stage for Phase 3, the deflationary maturity stage.
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