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Allocation policy
Protocol economicsAllocation policy
PROTOCOL ECONOMICS

Allocation policy

Two independent 30 / 60 / 10 stages, with clear accounting at each step.

Start with the right basis

Stage one allocates collected trading fees. Stage two allocates net converted ZEC proceeds. Each stage distributes 100% of its own basis; the first stage’s mining budget is not itself redistributed as holder rewards. Neither stage executes transactions in this workspace.

Stage one · collected trading fees

Apply the first split only to fees actually collected by the project, not to total trading volume. The fee source, rate, collector contract, authorized recipients, and execution schedule still require configuration. A lack of fee income leaves this stage without new funds.

Stage one · collected trading fees
AllocationSharePurpose
$OLM buyback & burn30%Fund a purchase and a separately verifiable burn.
Zcash mining60%Fund rented Equihash rigs or hashpower.
Team & developers10%Support approved operating and development costs.

Stage two · net ZEC proceeds

Only a confirmed ZEC payout with a recorded conversion and settlement can fund this stage. Deduct actual conversion and network costs once before applying the split.

Stage two · net ZEC proceeds
AllocationShare of net proceedsPurpose
$OLM buyback & burn30%A separate purchase and burn allocation.
NVDA stock tokens for eligible $OLM holders60%An acquisition budget under the planned holder policy.
Team & developers10%Support approved costs from this settlement.

Buyback & burn

The policy earmarks 30% at each stage for $OLM buyback and burn. A purchase and a burn are separate events, each requiring a transaction record.

A contract burn can reduce totalSupply. Sending tokens to an inaccessible address may leave totalSupply unchanged. A current supply reading is not a cumulative burn total.

Account for costs once

Actual conversion and network costs are deducted before the second split. Pool fees already withheld from a payout should not be deducted again. Rig rental already funded by the first allocation remains a separate operating cost.

Net proceeds here means the settlement amount available for the second allocation, not full operating profit. An operating-profit report must include rental and other operating costs once, even when those costs were funded from trading fees.

A concrete example

The example below uses hypothetical settlement units and applies the stages independently. It is not a price quote, a forecast, or a record of payments.

A concrete example
BasisBuyback & burnPrimary allocationTeam & developers
1,000 units of collected trading fees300600 for mining100
500 units of converted ZEC proceeds − 20 actual conversion/network costs = 480 net144288 for NVDA acquisition48

Use the simulator

  • Choose the trading-fee or ZEC-proceeds stage.
  • Enter the basis in one settlement asset, such as ETH or USDG.
  • For proceeds, enter conversion and network costs in that same asset.
  • Read each share and any atomic-unit rounding reserve.
Measure the work. Understand the economics.oreloom.