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Here are answers to the most common questions about how Vibe Token works — covering token earning, distributions, exits, legal considerations, and what the founder can and cannot change after launch.
No. Tokens can only be earned through referrals and contributions that generate revenue events, or granted directly from a founder’s treasury. There is no mechanism to purchase tokens with cash.This is intentional. Allowing direct token purchases would constitute a securities offering, which creates significant legal exposure for both the founder and the buyer. By tying token issuance exclusively to revenue contribution, Vibe Token stays outside that boundary.
No. α is set at launch and is permanently immutable. It cannot be updated, overridden, or adjusted under any circumstances after the system goes live.This is the founder’s binding commitment to contributors. When you earn tokens under a specific α, that rate reflects the deal you made — and it stays that way for the lifetime of the system.
No. k is also set at launch and cannot be modified post-launch. The pricing constant is fixed at the same moment as α.This means the price formula P = k × √S is fully locked from day one. No one can adjust k to inflate or deflate token prices after contributors have begun earning.
The floor() function in the token earning formula means that very small revenue events at high token prices may yield zero tokens for the contributor.For example: α = 0.10, dR = $5, P = $2.00
tokens = floor(0.10 × 5 ÷ 2.00) = floor(0.25) = 0 tokens
You receive no tokens from that specific event. However, the revenue still counts — it flows into the distribution pool D = α × dR, and all existing token holders receive their proportional share of that $0.50. The revenue is not lost; it just doesn’t mint new tokens when the resulting amount rounds down to zero.
Once you initiate an exit and your tokens enter the queue, those tokens no longer participate in distributions. The burned tokens are removed from the supply used to calculate per-token payouts.Distributions from future revenue events are prioritized to fund pending exits (processed FIFO), with any remainder flowing to holders who are not in the exit queue. You are giving up ongoing distribution rights in exchange for your exit payout.
Yes. Partial exits are fully supported. You can queue any number of tokens for exit — from a single token up to your entire balance — while keeping the remainder in your wallet for ongoing distributions.Your remaining tokens continue to earn distributions based on your share of the post-exit supply.
If revenue stops, the exit queue stalls. No new distributions occur, so pending exits cannot be funded. Remaining holders continue to hold their tokens, but receive no payouts.This outcome is honest and transparent by design. Vibe Token represents a claim on future revenue — not a guaranteed return. If the business generates no revenue, there is nothing to distribute or use to fund exits. You knew this going in.
No. Treasury tokens held by the founder are inert. They do not participate in revenue distributions and do not count toward the circulating supply S used in price or payout calculations.Once the founder grants treasury tokens to a contributor, those tokens immediately become active and participate in all future distributions from that point forward.
Your per-token payout is always D ÷ S, where D = α × dR and S is the current circulating supply.As more tokens are minted (supply grows), S increases and your per-token payout shrinks proportionally — even though your total token count stays the same. As tokens are burned through exits, S decreases and your per-token payout grows.Your share of any distribution is always (your tokens ÷ S) × D. Holding more tokens relative to total supply is the only way to increase your distribution share.
No. Vibe Token is an economic mechanism for software businesses, not a cryptocurrency. It operates as an accounting system within a single business — no public blockchain, no wallet addresses, no gas fees, no smart contracts.The token is a unit of account that tracks contribution and entitlement to revenue share. It lives in whatever software system the founder uses to run the business.
Most founders set α between 10% and 30%.Below 10%, the token rewards may feel too small to meaningfully motivate contributors — the tokens earned per revenue event are few, and distribution payouts are thin. Above 30%, the founder’s retained revenue per event shrinks significantly, which can strain the business depending on margins.The right value depends on your business model, contributor expectations, and how central referrals are to your growth. There is no single correct answer, but the 10–30% range covers the vast majority of reasonable setups.
Use the floor value: k = 0.005. This is the minimum value the formula allows and gives you a reasonable starting price even before your first dollar of MRR.At k = 0.005 and S = 1,000 (the supply floor), the token price is approximately $0.158. That’s a low, honest starting point that rewards early contributors without overstating the value of a pre-revenue business.If you have honest projections for early MRR, you can use those to compute k directly: k = MRR ÷ 1,000,000. Just make sure the number you use reflects reality — since k is immutable after launch, an inflated k permanently overprices tokens relative to the business’s actual scale.