📘 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

Category
Allocation

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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