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Token Flow

This document details the complete lifecycle of model tokens in the Hokusai ecosystem, from minting to burning.

Token Lifecycle​

[Minting Triggers]
    ↓
[Token Distribution]
    ↓
[Token Usage]
    ↓
[Burning Triggers]

Minting Triggers​

1. Performance Improvement​

function mintForImprovement(
    bytes32 modelId,
    uint256 improvementBps,
    address contributor
) external onlyVerifier {
    require(improvementBps > 0, "No improvement");
    uint256 reward = calculateReward(improvementBps);
    _mint(contributor, reward);
    emit ImprovementRewarded(modelId, contributor, reward);
}

Improvement Calculation​

  • Based on basis points (bps) of improvement
  • Minimum threshold: 100 bps (1%)
  • Maximum reward per improvement
  • Cooldown period between improvements

2. Initial Model Registration​

function mintInitialSupply(
    bytes32 modelId,
    address owner,
    uint256 initialScore
) external onlyRegistry {
    require(initialScore >= MINIMUM_SCORE, "Score too low");
    uint256 initialSupply = calculateInitialSupply(initialScore);
    _mint(owner, initialSupply);
    emit ModelRegistered(modelId, owner, initialSupply);
}

Initial Supply Rules​

  • Based on model performance score
  • Minimum initial supply
  • Maximum initial supply
  • Vesting schedule for team tokens

Burning Triggers​

1. Model Access​

function burnForAccess(
    bytes32 modelId,
    uint256 amount
) external {
    require(balanceOf(msg.sender) >= amount, "Insufficient balance");
    _burn(msg.sender, amount);
    emit AccessGranted(modelId, msg.sender, amount);
}

Access Burn Rates​

  • Standard rate: 1 token per request
  • Batch discount: Up to 25% off
  • Enterprise rates: Custom agreements

2. Treasury Redemption​

function burnForUSDC(
    uint256 tokenAmount,
    uint256 minUSDC
) external {
    require(tokenAmount > 0, "Amount must be > 0");
    uint256 usdcAmount = calculateUSDCAmount(tokenAmount);
    require(usdcAmount >= minUSDC, "Slippage too high");
    _burn(msg.sender, tokenAmount);
    usdc.transfer(msg.sender, usdcAmount);
    emit TokensRedeemed(msg.sender, tokenAmount, usdcAmount);
}

Redemption Rules​

  • Price impact calculation
  • Slippage protection
  • Minimum redemption amount
  • Cooldown periods

Token Distribution​

1. Contributor Distribution​

struct ContributorReward {
    address contributor;
    uint256 share;
    uint256 vestingPeriod;
    uint256 startTime;
}

function distributeRewards(
    ContributorReward[] calldata rewards
) external onlyManager {
    for (uint i = 0; i < rewards.length; i++) {
        _mintVested(
            rewards[i].contributor,
            rewards[i].share,
            rewards[i].vestingPeriod,
            rewards[i].startTime
        );
    }
}

Distribution Rules​

  • Proportional to contribution
  • Vesting schedules
  • Cliff periods
  • Early withdrawal penalties

2. Treasury Distribution​

function distributeTreasuryRewards(
    address[] calldata recipients,
    uint256[] calldata amounts
) external onlyTreasury {
    require(recipients.length == amounts.length, "Length mismatch");
    for (uint i = 0; i < recipients.length; i++) {
        _mint(recipients[i], amounts[i]);
    }
}

Treasury Rules​

  • Protocol fee distribution
  • Liquidity provider rewards
  • Emergency fund allocation

Token Flow Diagram​

[Model Performance] → [Verifier] → [Token Manager]
    ↓
[Contributor Rewards] → [Vesting] → [Distribution]
    ↓
[Model Access] → [Burn] → [Treasury]
    ↓
[USDC Redemption] ← [Bonding Curve] ← [Liquidity Pool]

Monitoring and Analytics​

1. Supply Metrics​

  • Total supply
  • Circulating supply
  • Burned tokens
  • Minted tokens

2. Flow Metrics​

  • Daily minting volume
  • Daily burning volume
  • Active users
  • Token velocity

3. Performance Metrics​

  • Model improvement rate
  • Access frequency
  • Treasury health

Next Steps​

For additional support, contact our Support Team or join our Community Forum.

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