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Token Simulation

This token simulation covers ideas on

  • Token sales for platform development,
  • Total circulation with buy and sell activites,
  • Token activities of the operations and rewards pools,
  • Difference between Treasury and Bonding Curve transactions
  • Ideal customer growth rates to manage token actvitiy

What it doesnt cover is

  • token pricing dynamics
  • open token trading

Please not that the numbers used and activities are for simulation purposes only and not reflective of actual DAO activities.

Phase 1 – Fundraising & Contribution Support (Pre-platform)​

  • Treasury raises fiat (or other assets) through grants, seed funding, or controlled initial token sales (bonding curve, fixed swaps).
  • These tokens are locked for 2yrs in a Skating Pool which recieve UTIL token rewards at 6% APR.

Example numbers:

  • Treasury mints and sells 2M UTIL for $2M NZD for initial Token Sale (TS).
  • After 12months the rewards pool mints 120K UTIL.
  • DAO mints ~1.4M UTIL for verified contributions needed for first-year development.
  • Contributors sell back 1.12M UTIL to Treasury Buybacks (BB) (only available to registered contributors) for NZD raised during TS.

Circulation:

  • 2.4M UTIL: Total staked (2M from TS + 120K rewards + 280K contributors held)

Treasury Reserve:

  • 880K NZD (2M from TS - 1.2M in BBs from contributor payouts)
  • 1.12M UTIL (from contributor BB)

Token Dynamics

  • No open trading
  • Tokens from initial TS are locked in staking pool for 2yrs
  • Treasury runs BB programme with TS revenue to provide income to contributors
  • 80% of yearly contributors payouts are used in treasury BB
  • The remaining 20% are moved to staking pool

Phase 2 – Initial Token Sales for Platform Services (Beta Launch)​

  • First features (registration, storage, voting modules) are live.
  • Bonding Curve mints UTIL to supply service demand.
  • Communities buy UTIL directly from bonding curve.
  • Communities spend UTIL on platform fees transferring UTIL into the Treasury Reserve
  • Reward pool continues to mint UTIL at 6% APR

Example numbers:

  • 10 communities onboard in Year 1.
  • Average spend: 1,000 UTIL/year each = 10k UTIL demand.
  • Bonding Curve mints 10k UTIL, sells to communities for $10K NZD each, this is held in Bonding Curve reserve to provide sell liquidity.
  • Treasury transfers ~500K UTIL/year to Operations Pool from the Reserve to support ongoing development and operations.
  • Treasury transfers 144K UTIL to rewards pool
  • Operations Pool distributes 500K UTIL for contributor payouts
  • Contributors sell back 400K UTIL to BB

Circulation:

  • 2.644M UTIL: Total staked (2.4M + 144K rewards + 100K contributions)

Treasury Reserve:

  • 480K NZD (880K - 400K contributor BBs)
  • 886K UTIL (1.12M - 500K for ops - 144K token rewards + 400K from BB + 10K platform fees)

Bonding Curve Reserve:

  • 10K NZD (from initial platform sales)

Token dynamics:

  • UTIL demand is linked to services, not speculation.
  • Bonding Curve builds reserve to support future token sales
  • Treasury recycles BB tokens to fund operations and rewards

Phase 3 – Expansion & Fee-Driven Economy (Growth Years)​

  • 100 communities onboard (Year 2), then 500 more per year.
  • Platform fees scale ~1,000 UTIL per community per year.
  • Bonding curve mints UTIL to cover service demand and maintains selling reserve.
  • TS holders locking period complete and 100% of rewards are sold with original TS remaining staked

Example numbers (Year 3):

  • 600 communities active.
    • Demand:
      • 600K UTIL/year minted by Bonding Curve.
      • $600 NZD added to bonding curve reserve
    • Spend: 600K UTIL/year from platform services transferred to treasury reserve.
  • Contributor payouts: ~500k UTIL/year from reserve to operations pool
    • BB: 400K UTIL/year contributors buyback to reserve
  • Rewards: ~160K UTIL transferred from reserve
  • Token sales: 224K UTIL sold to bonding curve (~50% total token rewards)

Circulation:

  • 2.66M: total staked (2.644M - 224K rewards sale + 160K token rewards + 100k contributions held)

Treasury Reserve:

  • 80K NZD (480K - 400K for BB)
  • 1.26M UTIL (886K - 500K (for ops) - 160K token rewards + 400K (from BB) + 600K (from platform fees))

Bonding Reserve:

  • 386K NZD (10K + 600K from token sales - 224K reward sales)

Market dynamics:

  • Contributors continue to sell back 80% UTIL to treasury and stake the rest.
  • Some stakers sell a portion of token rewards but continue to stake to earn rewards
  • BC recycles platform revenue to support community token sales

Phase 4 – Stable Growth & Economic Activity (Finding stability)​

  • Platform reaches steady state: 1,000 communities onboard.
  • Services (registration, storage, comms, voting) generate predictable annual UTIL demand.
  • BC now manages UTIL buying for platform services and sell demand stake holding, contributor payouts and staking rewards.
  • As the network grows so does the token demand and staking pool.
  • Treasury recycles platform revenue into ops and staking rewards.

Circulating supply stabilizes around a band, rather than endlessly inflating.

Example steady-state scenario yr 4:

  • 1,100 communities × 1,000 UTIL = 1.1M UTIL annual demand.
  • BC mints 1.1M UTIL to meet demand and holds 1.1M NZD in reserve.
  • communities spend 1.1M UTIL/year from platform services transferred to treasury reserve.
  • Contributor payouts: ~500k UTIL/year from treasury reserve to operations pool
  • Rewards: ~180K UTIL transferred from reserve
  • Token sales: 180K UTIL sold to bonding curve (100% token rewards) + 400K UTIL/year contributors sold
  • Staking pool grows: 500K for staking pool

Circulation:

  • ~3M: total staked (3M + 100k contributions held + 500K new stakers)

Treasury Reserve:

  • 80K NZD
  • 2.6M UTIL (1.26M + 1.1M token sales + 400 BB - 180K token rewards)

Bonding Reserve:

  • 1.326M NZD (386K + 1.1M from token sales - 180K reward sales - 400 from BB)

Market dynamics:

  • Contributors continue to sell back 80% UTIL to treasury and stake the rest.
  • 100% of token rewards are now sold to bonding curve
  • bonding curve reserve grows raising token floor price

Phase 5 – Treasury Actioned Economic Wellbeing (Mature Platform )​

  • Platform reaches steady state: 1,500 communities onboard (+500/year).
  • Services maintain predictable annual UTIL demand.
  • Token confidence grows community staking
  • BC + Treasury reserves direct platform revenue into community funding.
  • Treasury adds buyer limits, and mint/sell caps to encourgae distribution and protect against major price changes.

Circulating supply stabilizes around band, rather than endlessly inflating.

Example steady-state scenario yr 5:

  • 1,600 communities × 1,000 UTIL = 1.6M UTIL annual demand.
  • BC mints 1.6M UTIL to meet demand and holds 1.6M NZD in reserve.
  • Spend: 1.6M UTIL/year from platform services transferred to treasury reserve.
  • Contributor payouts: ~500k UTIL/year from reserve to operations pool
  • 1M UTIL in community funding distributed from treasury reserve
  • Token sales:
    • 400K UTIL/year contributors (80% of annual payouts)
    • 180K UTIL transferred from reserve and sold (100% of annual staking rewards)
    • 1M UTIL community projects
    • 1M UTIL new stakers

Circulation:

  • ~4.1M: total staked (3M + 100k contributions held + 1M new stakers)

Treasury Reserve:

  • 80K NZD
  • 2.92M UTIL (2.6M - 500K contributors payout + 1.6M token sales + 400K contributors BB - 180K token rewards - 1M community funded then burned)

Bonding Reserve:

  • 2.346M NZD (1.326M + 1.6M from token sales + 1M new stakers - 180K reward sales - 400 from contributor BB - 1M community funding)

Market dynamics:

  • 100% of community funding is burned to provide holder confidence and stablity band
  • UTIL value is tied to service utility + treasury revenue, not speculation.
  • Price stability comes from treasury buybacks & usage fees (a kind of “sink” for tokens).
  • Long-term: the economy is sustainable because demand (services) and supply (mint-on-use) are always matched.
  • Predictable income and stable operational costs create net buy pressure providing disposible revenue for community projects

⚖️ Key Takeaways​

  • No fixed circulation cap — supply expands only as value is created (contributions or service usage).
  • Treasury = central stabilizer: it mints for verified contributions and service demand, and burns/buys back to prevent oversupply.
  • Early phases are reward-heavy (contributors), so circulation looks high but demand is low.
  • Mature phase flips this — demand from communities sustains circulation and treasury grows, stabilizing the economy.
  • Circulation in a strong mint-on-use model usually stabilizes in a 30–60% active use range, with the rest in treasury, burns, or locked reserves.