📘 Liquidity Foundation
The stability-first phase that protects the protocol during its earliest and most fragile stage.
Phase 1 is designed to build the economic bedrock of the Rogue AI ecosystem. No buybacks occur in this phase — the focus is on liquidity strength, operational funding, and safe early rewards.
This is the most conservative and protective stage of the system.
3.1 Phase 1 Goals
Phase 1 exists to:
✔ Build deep Protocol-Owned Liquidity (POL)
✔ Create a strong operational foundation
✔ Ensure node and staking systems become stable
✔ Prevent price instability in early trading
✔ Avoid premature deflation
This foundation allows the system to grow safely into later phases.
3.2 Revenue Allocation — Phase 1
Team Compensation
30%
Treasury Fund
20%
Protocol-Owned Liquidity (POL)
25%
Node Rewards
10%
Staking Rewards
10%
Airdrop Fund
5%
Buyback & Lock
0%
3.3 Why Buybacks Are Disabled in Phase 1
Buybacks are intentionally set to 0% to avoid:
Slippage shocks due to low liquidity
Accidental pump-and-dumps
Burning capital inefficiently
Artificially inflating early value
Reducing circulating supply too early
This creates a stable launch environment.
Buybacks only activate in Phase 2, once liquidity thresholds and safety metrics are met.
3.4 POL (Protocol-Owned Liquidity) Priority
Phase 1 directs 25% of all revenue into POL — the highest allocation of any phase.
This ensures:
Deep, safe liquidity pools
Low price volatility
Strong protection against market manipulation
Smooth trading experience
Safe environment for future buybacks
POL is Rogue AI’s liquidity backbone.
3.5 Team & Treasury Stability
Together, the Team (30%) and Treasury (20%) receive 50% of Phase 1 revenue.
This ensures:
Continuous platform development
AI model training & refinement
Execution infrastructure stability
Security and audits
Legal and compliance coverage
24/7 operations scaling
A strong team + treasury is crucial to long-term sustainability.
3.6 Early Node Rewards
Nodes earn 10% of Phase 1 revenue, offering premium ROI to early infrastructure providers.
This encourages:
High early participation
Stable node network growth
Reliable execution infrastructure
Nodes are foundational to the Rogue AI platform and therefore rewarded early.
3.7 Controlled Staking Incentives
Staking receives 10%, enough to reward early holders but not enough to:
Encourage excessive lockup
Reduce circulating supply too quickly
Create liquidity shortages
Staking becomes more attractive in later phases.
3.8 Airdrop Fund (One-Time)
5% is allocated to early supporters to:
Reward early adopters
Encourage engagement
Establish wide token distribution
The airdrop exists only in Phase 1.
3.9 Phase 1 → Phase 2 Safeguard Conditions (Updated)
Transition only occurs when the ecosystem is economically ready.
All conditions must be satisfied:
POL ≥ $10–$15 million
Revenue Stability ≥ 3 consecutive months
Treasury Runway ≥ 12 months
Circulating Supply ≥ 50%Why these safeguards matter:
Prevent early buyback slippage
Avoid dangerous deflation during early growth
Ensure the ecosystem has stability coverage
Maintain liquidity deep enough to handle demand
3.10 Summary — Why Phase 1 Is Critical
Phase 1 is the foundation of the Rogue AI economy.
Strong liquidity comes first
Sustainable rewards come second
Deflation comes last
This three-step progression ensures the tokenomics system remains stable, scalable, and resilient — even in volatile markets.
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