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Tokenomics Overview

IMPORTANT NOTICE

This documentation is for educational and informational purposes only.

  • There is no endorsement of investment in any specific model tokens
  • Token trading is highly risky - you may lose 100% of invested funds
  • Always verify contract addresses, team credentials, and claims independently
  • Nothing here constitutes financial, investment, or legal advice

See Investor Guide for complete risk disclosures before participating.

Hokusai's tokenomics are designed to align incentives across data suppliers, model developers, and token holders. Each model has dedicated tokens that can be traded on an automated market maker (AMM) using a Constant Reserve Ratio (CRR) bonding curve. API revenue flows into the USDC reserve pool, increasing token backing and price.

Key Components​

DeltaOne Performance Rewards​

  • 1 DeltaOne = 1% model improvement (e.g., accuracy increase from 80% → 81%)
  • Tokens minted to reward data suppliers for verified performance gains
  • Performance verified through MegaAI benchmarking system
  • Creates inflationary pressure when models improve

CRR Bonding Curve AMM​

  • Buy tokens with USDC at deterministic bonding curve price
  • Sell tokens for USDC (enabled after 7-day launch period)
  • No liquidity providers needed - always-available liquidity
  • Price formula: P = R / (w × S) where R=reserves, S=supply, w=CRR
  • Learn more about the AMM →

Seven-Day Launch Period​

  • Every new model starts with buy-only period (Days 0-6)
  • Selling enabled on Day 7
  • Prevents manipulation and enables fair price discovery
  • Launch period details →

API Fee Flow​

  • Per-model configurable split via infrastructureAccrualBps in HokusaiParams
  • Infrastructure accrual (50-100%) → sent to InfrastructureReserve contract
  • Profit share (0-50%, residual) → deposited to AMM USDC reserve (increases price)
  • Profit deposits increase reserves without minting tokens
  • Token holders benefit from genuine profit after infrastructure costs
  • API fee mechanics →

Token Supply Dynamics​

  • Tokens can be sold back to the AMM for USDC (after launch period)
  • Selling tokens on the AMM burns them and returns USDC from reserves
  • Supply adjusts based on minting (rewards) and selling (burns)

How to Participate​

RoleHow to Get TokensHow to Benefit
Data SupplierEarn DeltaOne rewards for improving modelsSell rewards on AMM or hold for appreciation
InvestorBuy tokens on AMM during or after launchAPI fees increase reserve → price increases
Model UserBuy tokens to access model APIsUse tokens to access AI model inference

Next Steps​

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