When you want liquidity from your Vibe Tokens, you exit by burning them. Burning means permanently removing those tokens from the circulating supply. In return, you receive a cash payout equal to the number of tokens you burned multiplied by the current price — funded by future revenue as it arrives. There is no secondary market, no counterparty to find, and no liquidity pool to drain.
Example: You hold 200 tokens and the current price is P = $1.50.
Your $300 claim enters the exit queue and is paid out as the business generates future revenue.
How an Exit Works, Step by Step
-
You choose how many tokens to exit. This can be your full balance or any portion of it. The rest of your tokens remain active and continue earning distributions.
-
Your tokens are burned. The circulating supply
S decreases immediately. Because P = k × √S, a lower S means a lower price — your exit has a small but real price impact on all remaining holders.
-
You join the exit queue with your exit value. Your position in the queue is timestamped. If other holders are already queued ahead of you, they are paid first.
-
Future revenue distributions fund the queue. Each time a revenue event occurs, the exit queue receives its share of the distribution pool before active holders. See Revenue Distribution for how queue priority works.
-
Once your claim is fully paid, distributions resume normally. Remaining holders receive their full pro-rata share from that point forward.
Partial Exits
You can exit any fraction of your tokens. If you hold 500 tokens and exit 150, you burn 150 and keep 350. Your 350 remaining tokens continue receiving distributions at full pro-rata rate while your $X claim works through the queue.
Partial exits let you take some liquidity now while keeping your exposure to future revenue distributions. If you believe the business will keep growing, exiting a portion is often more useful than a full exit — you realize current value without giving up your ongoing share.
The Exit Queue
The queue operates FIFO — first in, first out. If three holders queue exit claims in sequence, the first holder’s claim is fully paid before the second holder receives anything.
Multiple holders can be in the queue simultaneously with no upper limit. The only thing that funds the queue is incoming revenue. If two holders queue exits at the same time, they join in the order their requests were received.
What happens if revenue slows? The queue stalls. Claims do not expire, but they are not paid until the next revenue event arrives. This is an honest reflection of what token value actually represents: a claim on future revenue, not a guaranteed immediate payout.
Why No Reserve Pool?
Some token systems hold a cash reserve to guarantee instant redemptions. Vibe Token deliberately does not.
A reserve pool requires the business to set aside capital that could otherwise fund operations or growth. It also creates a false impression of liquidity — the reserve is finite, and a rush of exits can exhaust it instantly.
The exit queue is slower but honest. Your claim is backed by the actual revenue-generating capacity of the business, not an arbitrary cash buffer. If the business is healthy, the queue moves quickly. If it isn’t, the queue reflects that reality directly rather than masking it.
Price Impact of Exits
When you burn tokens, S decreases, and the bonding curve lowers P accordingly. This is the real cost of exit — not a fee, not a penalty, but the natural consequence of reducing supply.
For most exits, the price impact is small. Burning 200 tokens out of a supply of 10,000 reduces S by 2%, which reduces P by approximately 1% (because price scales with √S). Large exits from a small supply have proportionally more impact.
If the business stops generating revenue, queued exits will stall indefinitely. Token value is always a claim on future revenue — not on a pool of cash that currently exists. Before exiting, consider whether the business’s revenue trajectory supports your expected payout timeline.
