📘 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

Category
Allocation

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 depth

Overflow 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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