Token Distribution

The total token supply of ROOSTER is 100,000,000 (100 Million) tokens. Mirroring the successful incentive structures of the ve(3,3) model, Rooster's emissions mechanism is designed to function in perpetuity. This longevity is achieved through a decay in the rate of new token emissions over time. This decaying rate ensures sustainable inflation dynamics; while emissions can continue indefinitely at diminishing rates, the total circulating supply will asymptotically approach the 100 million token supply.

At genesis, the whole 100 million supply will be minted and split as follows:

Initial Token Allocation (Genesis Partition)

30,000,000 ROOSTER tokens (representing 30% of the total supply) will be distributed as locked veROOSTER, ensuring long-term alignment from key stakeholders from day one. The allocation of these tokens is as follows:

• Ecosystem Pairs ve Delegation (40%): Locked as veROOSTER and used to vote on ecosystem pools in order to bootstrap liquidity and incentivize key pairs.

• Voter Incentives (20%): Used to reward veROOSTER holders participating in governance.

• Public Goods and Future Airdrops (15%): Distributed over time to engaged users and protocols within the Plume ecosystem.

• Contributors (25%): Allocated to the core team and advisors as veROOSTER.

Emission Mechanism: The ROOSTER/PLUME Pool

70,000,000 ROOSTER tokens (representing the remaining 70% of the total supply) is designated for ongoing protocol emissions. This supply will be placed initially into a specific ROOSTER/PLUME liquidity pool on Rooster. This pool serves two critical functions:

1. Source of Emissions: Weekly emissions are drawn directly from the ROOSTER balance held within this designated pool.

2. Primary Liquidity: The pool provides the main venue for users to buy and sell ROOSTER against PLUME.

Value-Modulated Emissions

The emission schedule dictates a percentage of the available ROOSTER in the ROOSTER/PLUME pool will be distributed each week. This creates a dynamic, "Value-Modulated Emission" system:

• Price Increase: If demand for ROOSTER increases and users buy it from the pool, the quantity of ROOSTER remaining in the pool decreases. Consequently, the absolute number of tokens emitted in the following weeks will be lower, even if the percentage rate remains the same for that epoch.

• Price Decrease: Conversely, if ROOSTER is sold into the pool, the balance increases, leading to a higher absolute number of tokens emitted in subsequent weeks (at the same percentage rate).

This mechanism naturally regulates the emission rate based on market dynamics and provides transparent on-chain visibility of the exact supply available for purchase versus emission.

Emission Schedule & Elasticity

The distribution percentage applied to the ROOSTER/PLUME pool's balance follows a structured schedule designed to front-load incentives while ensuring long-term sustainability:

• Weeks 1-25: 1.0% of pool's ROOSTER balance emitted per week.

• Weeks 26-50: 0.7% of pool's ROOSTER balance emitted per week.

• Weeks 51-100: 0.5% of pool's ROOSTER balance emitted per week.

• Weeks 101-200: 0.4% of pool's ROOSTER balance emitted per week.

• Weeks 201-300: 0.3% of pool's ROOSTER balance emitted per week.

• Weeks 301-400: 0.2% of pool's ROOSTER balance emitted per week.

• Weeks 401 onwards: 0.1% of pool's ROOSTER balance emitted per week.

Elastic Emissions: The baseline emission percentage can be modified by up to ±50% per epoch depending on protocol health metrics, primarily the relationship between protocol revenue (e.g., fees, voter incentive revenue) and the value of emitted tokens, in order to maintain sustainable inflation.

• Increase Potential: Considered when protocol revenue consistently meets or exceeds the value of emissions, or if significant positive catalysts are anticipated.

• Decrease Potential: Considered when protocol revenue is substantially below the value of emissions for multiple epochs, or if negative catalysts are expected.

Operations Emissions: 5% of emissions in each epoch will be used to ensure Rooster's long-term sustainability.

Note: These schedules and adjustments represent the intended model. Actual emission numbers may vary based on governance decisions and protocol performance. This model demonstrates our commitment to sustainable, long-term supply dynamics.