Pipe Network — Tokenomics & Governance (Full Draft v1.0) Ticker: PIPE Chain: Solana (SPL token) Model: Proof‑of‑Useful‑Work (PoUW) for bandwidth & storage; emissions are usage‑gated and follow a disinflation schedule. Payments: Users can pay in PIPE or burn PIPE to receive usage credits at the oracle price (per‑user burn vaults on Solana). Staking: Single staking pool; deposit PIPE → receive LovePIPE (non‑rebasing LST). Governance: Binding votes by PIPE; operator signaling is advisory only.

  1. Supply & Genesis Allocation Total supply at TGE: 1,000,000,000 PIPE.

Allocation (percent of total):

Community : 22% = 220,000,000

Strategic Investors: 32.34% = 323,400,000

Core Contributors & Labs: 15.67% = 156,700,000

Ecosystem & Treasury: 19.99% = 199,900,000

Node Operators: 10% = 100,000,000

UUnlock Schedules: final cliff and linear vesting schedules for each category will be published at or before TGE. Investor tokens unlock 1 year post-TGE; team tokens unlock 2 years post-TGE with a 1-year cliff, followed by linear vesting.

  1. Disinflation & Epoch Mint Caps (Nominal) Annual nominal inflation cap decreases 18% YoY from 12% until it reaches a 1.5% floor. Formula (plain text): r_y = max(1.5%, 12% * 0.82^(y - 1)) where y is the year since launch (1,2,3,…)

Epoch = monthly. For each month in year y: Monthly cap formula: E_cap_month = (r_y / 12) * S_year_start

where S_year_start is circulating supply at the start of that year. No catch‑up: unused capacity never mints later. Quick reference (nominal cap, first 12 years): Year 1: 12.00% • 2: 9.84% • 3: 8.07% • 4: 6.62% • 5: 5.43% • 6: 4.45% • 7: 3.65% • 8: 2.99% • 9: 2.45% • 10: 2.01% • 11: 1.65% • 12+: 1.50% (floor)

  1. Usage‑Gated Emissions (Realized ≤ 0.515 × Cap) PIPE only mints after verifiable useful work. Node buckets (gross node pay): Bandwidth bucket: up to 25% of E_cap_month

Storage bucket: up to 25% of E_cap_month

No cross‑reallocation: if one under‑produces, that share does not mint.

On‑mint: mint 3% of node gross (B_node + S_node) to the treasury each epoch. Staking commission: 7% of node gross goes to the staking pool (LovePIPE). This is redistribution, not extra mint. Total minted (max, when both buckets are full): Minted_total = (B_node + S_node) + 0.03 * (B_node + S_node) Upper bound: Minted_total ≤ 0.515 * E_cap_month Reference points: Year 1 nominal = 12% ⇒ max realized ≈ 6.18%

At floor 1.5% ⇒ max realized ≈ 0.7725%

  1. Work Pricing & Proofs USD‑indexed rates (paid in PIPE at oracle price): Bandwidth: $1 per TB delivered

Storage: $10 per TB‑month held

Proof of bandwidth: signed service receipts with nonces/timestamps; duplicate detection; randomized integrity audits. Proof of storage: randomized PoR/PoS challenges; integrity checks; eviction penalties. Quality score: per node q in [0,1] from uptime, latency, audit pass‑rate, correctness.

  1. Per‑Epoch Node Payouts Raw payouts at rate B_raw = ($1 * TB_bw) / PIPE_price S_raw = ($10 * TBm_st) / PIPE_price

Apply bucket caps B_node = min(B_raw, 0.25 * E_cap_month) S_node = min(S_raw, 0.25 * E_cap_month)

Staking commission staking_to_pool = 0.07 * (B_node + S_node) (nodes receive the rest)

Treasury on‑mint Treasury_fee = 0.03 * (B_node + S_node) (additional mint)

Intra‑bucket split (bandwidth or storage): R_i,c = [ work_i * q_i * booster_i ] / Σ_j [ work_j * q_j * booster_j ] * C_c where C_BW = B_node and C_ST = S_node. Early Participant Boost: first 12 months. Eligible, well‑performing nodes get booster = 2. Boost only re‑weights within the bucket (no extra mint).

  1. Staking & LovePIPE LST Stake PIPE → receive LovePIPE (non‑rebasing LST).

Yield source: 7% of node gross each epoch accrues to the pool.

Exchange rate: ER = Pool_PIPE / LovePIPE_supply (rises over time).

Deposit: LovePIPE_minted = PIPE_in / ER

Redeem: PIPE_out = LovePIPE * ER

Unbonding/slashing: (e.g., 7–21 days; slashing only if LovePIPE secures critical infra).

Leaderboard (pipe.love): ranks wallets by LovePIPE/staked PIPE (optionally time‑weighted) for future rewards/NFTs.

  1. Solana Burn‑to‑Credit Goal: users can prepay by burning PIPE; credits are recorded in USD at the burn time and then consumed at usage price. Design: per‑user burn vaults For each user, derive a program PDA that owns an Associated Token Account (ATA) for the PIPE mint.

Users need a small amount of SOL to fund: (a) rent‑exempt minimum for the ATA, and (b) transaction fees.

Flow (happy path): dApp derives PDA = find_program_address(["burn", user_pubkey]) and the ATA for (owner = PDA, mint = PIPE).

User funds rent/fees and creates the ATA.

User transfers PIPE to the vault (ATA).

Program executes token::BurnChecked (owner = PDA).

Credit recorded: credit_usd = PIPE_burned * PIPE_price_at_burn (oracle) Usage debits: $1/TB bandwidth and $10/TB‑month storage.

Attribution: credit to sender wallet by default (optional signed recipient). Oracle safety: median/TWAP with deviation clamps; if paused, burns queue until price resumes. Account lifecycle: PDA may close empty ATAs later to reclaim lamports. Supply accounting: burns reduce total supply. Public dashboard shows Mint, Burn, Net per epoch (see §13).

  1. Node Operator Genesis Program (10% of supply) Purpose: bootstrap supply side and geo/ISP diversity. Budget: 100,000,000 PIPE (10% of genesis) over 24 months from mainnet.

Monthly cap: ~4,166,666 PIPE.

Rollover: unspent rolls for up to 3 months, then returns to the Treasury.

Monthly pools (tunable defaults): Performance (70%) — distributed pro‑rata by points = work * quality * booster; per‑operator cap = 1% of the monthly budget.

Expansion (20%) — bounties for new geos/ISPs; paid on proof of service after probation.

Special (10%) — emergency hotspots & pilots; unused rolls forward.

Eligibility: active in ≥3 of last 4 epochs, pass quality thresholds, not slashed. Misconduct: forged receipts/fraud → clawback + blacklist. Note: This program spends from genesis (affects circulating when distributed, not total) and is separate from ongoing PoUW emissions.

  1. Oracles, Safety & Anti‑Gaming Oracle: median/TWAP with deviation clamps; circuit breakers; pause if unhealthy.

Duplicate work: anti‑replay nonces; sampling audits; penalties for duplicates.

Sybil resistance: optional minimum node stake and/or identity attestations for eligibility/boost.

Accounting integrity: per‑epoch Merkle commitments to work/quality roots; verifiable with proofs.

  1. Economics & Edge Cases Under‑utilization: realized mint can fall to zero; no catch‑up.

Price shocks: if PIPE price drops and caps bind, nodes get pro‑rata; Foundation can adjust USD rates, bucket shares, or boost windows.

High burns: sustained burn‑to‑credit offsets emissions; net supply = mint − burn (reported in §13).

  1. Public Reporting & Dashboards Publish the following per epoch (monthly): S_year_start, r_y, cap_epoch = (r_y / 12) * S_year_start

node_bw_minted, node_st_minted

staking_commission_to_pool = 0.07 * (B_node + S_node)

treasury_on_mint = 0.03 * (B_node + S_node)

mint_total = (B_node + S_node) + treasury_on_mint

Burn log (Solana): list of {burn_vault_pubkey, payer_pubkey, pipe_amount, oracle_price_used, usd_credit, slot, tx_signature}

user_burned_for_credit = sum(pipe_amount)

net_supply_change = mint_total − user_burned_for_credit

Optionals: circulating_delta_from_unlocks, treasury_balance_end, LovePIPE_ER.

Dashboards on pipe.love: /supply, /staking, /treasury, /quality, /votes.

  1. Parameter Registry (defaults) Disinflation: 12% → -18% YoY → 1.5% floor

Epoch: monthly

Buckets (gross): 25% BW and 25% ST of epoch cap (no in‑epoch reallocation)

Treasury on‑mint: 3% of node gross

Staking commission: 7% of node gross → LovePIPE

Rates: $1/TB (BW) and $10/TB‑month (ST) with oracle/TWAP + deviation clamps

Boost: 2x during first 12 months (quality‑gated)

Node‑Op program: 100M PIPE over 24 months; monthly cap ~4.166M; pools 70/20/10 (Performance / Expansion / Special)

  1. Disclaimers This document is informational and not a solicitation. Operators and users must comply with their local laws. Burning tokens is irreversible. This is guidance and meant to allow for flexibility

Symbols (quick reference) r_y = annual nominal inflation cap for year y

E_cap_month = monthly mint cap = (r_y / 12) * S_year_start

S_year_start = circulating supply at start of the year

B_raw, S_raw = raw bandwidth/storage payouts at USD rates

B_node, S_node = capped node payouts per bucket

Minted_total = (B_node + S_node) + 0.03 * (B_node + S_node)

q = node quality score in [0,1]

booster = multiplier (2 during early‑participant window if eligible)

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