Vibe Token runs on six rules. Every behavior of the system — how tokens are priced, how contributors earn them, how revenue distributes, how holders exit, and what happens when many people want to exit at once — follows directly from these rules. There are no hidden parameters and no discretionary overrides. If you understand all six rules, you understand the entire system.
Rule 1: Token Pricing
Formula: P = k × √S
Where:
P is the current token price (in your chosen currency)k is the pricing constant set at launchS is the current total token supply
Token price is determined by a supply-based bonding curve. As tokens are minted — whether through the founder pre-mint or contributor earning — supply increases and price rises. As tokens are burned at exit, supply decreases and price falls.
The square root function is deliberate. It dampens price volatility relative to a linear curve: if you double the token supply, price rises by approximately 41%, not 100%. This makes early tokens meaningfully more valuable than late tokens without creating the explosive price swings of an unbounded linear model.
A minimum supply floor of Smin = 1,000 is enforced at all times. This ensures the price never reaches zero, even if all granted tokens are burned.
Early contributors benefit the most from square-root pricing. Because price is lower when supply is low, contributors who earn tokens before significant growth capture more tokens per dollar of revenue they generate — and those tokens appreciate as the project grows and supply increases.
Rule 2: Pre-Mint Treasury
At launch, the founder receives a treasury of tokens minted at the initial supply floor (Smin = 1,000). These treasury tokens are inert: they do not participate in revenue distributions, and they carry no exit value until the founder explicitly grants them to contributors.
The pre-mint solves the cold-start problem. Before your software generates a single dollar of revenue, you can grant treasury tokens to the people who help you get there — influencers, beta testers, referrers, community moderators. When revenue eventually flows, those contributors immediately begin receiving distributions.
Think of the treasury as your early-contributor budget. Use it intentionally: grants are permanent, and each grant reduces the supply available for future contributors.
Rule 3: Token Earning
Formula: tokens = floor(α × dR ÷ P)
Where:
α is your revenue share fraction (set permanently at launch)dR is the revenue delta — the revenue amount attributed to this contributor’s referralP is the current token price at the moment of the earning eventfloor() rounds down to the nearest whole token
When a referrer brings in a new customer, the revenue that customer generates is attributed to that referrer. The system calculates how many whole tokens that referral earns and mints them directly to the contributor’s account. The minting event increases supply, which raises the price for all subsequent earning events.
Tokens are earned through contribution, not purchased with money. This distinction is legally significant. Allowing contributors to buy tokens with currency can trigger securities regulations; earning them as compensation for referral activity or labor operates under a different legal framework. The floor() function ensures contributors always receive whole tokens — fractional remainders are not carried forward.
Rule 4: Revenue Distribution
Formula: payout = (α × dR) ÷ S
Where:
α is the revenue share fractiondR is the revenue event amountS is the issued token supply (all tokens held by contributors — treasury tokens held by the founder are excluded)
Every time your software earns revenue, α of that revenue distributes automatically and proportionally to all token holders. A holder who owns 10% of the issued supply receives 10% of the distributed amount.
Distribution happens at the event level: each payment, subscription renewal, or revenue transaction triggers its own distribution. There is no batching delay and no minimum threshold.
Treasury tokens held by the founder do not receive distributions. Once a treasury token is granted to a contributor, it becomes an issued token and begins participating immediately.
Rule 5: Token Exit
Formula: exit_value = tokens × P
Where:
tokens is the number of tokens the holder wants to burnP is the current token price at the moment of the exit request
When a contributor wants to exit, they submit a burn request for some or all of their tokens. The exit value is calculated at the current price. Partial exits are fully supported — a contributor can burn half their tokens and retain the rest.
Burning tokens decreases supply. Because P = k × √S, a decrease in supply lowers the price for all remaining holders. This is an intentional property of the system: exits have a mild dilutive effect on the price, which means large coordinated exits are self-limiting.
Exit proceeds do not pay out immediately. Instead, they enter the exit queue.
Rule 6: The Exit Queue
Exit requests are fulfilled in first-in, first-out (FIFO) order, funded entirely by future revenue distributions.
When you submit an exit request, your exit value is calculated and you join the back of the queue. Your tokens are burned immediately — you are no longer a supply holder — but the cash payout waits. Each time a distribution event occurs, the funds that would have gone to burned tokens instead flow forward to pay off the front of the queue.
No reserve fund is required. The queue is self-funding: as long as revenue continues, the queue clears. If revenue stops, the queue stalls. This is honest by design — tokens are claims on future revenue, and if there is no future revenue, there is nothing to claim. Contributors who understand this accept that their exit timeline depends on the product’s continued success.
The queue mechanism also protects remaining holders. Because exits are funded by distributions rather than a shared reserve, a wave of exit requests cannot drain a pool that active holders depend on. 
