Token Distribution

Supply & Emission Philosophy A supply of 100,000,000 (100 Million) ROOSTER tokens is minted at the Token Generation Event (TGE). Inspired by 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 controlled 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 circulating supply will increase gradually from the allocated portions.

Token Generation Event (TGE) & Allocation At the Token Generation Event (TGE), these 100,000,000 ROOSTER tokens are allocated as follows. Portions designated for stakeholders and ecosystem development are distributed as locked veROOSTER or earmarked for specific purposes, while the remainder fuels the ongoing emissions program:

• Ecosystem Pairs veDelegation (12% - 12,000,000 ROOSTER): Distributed as locked veROOSTER and used to vote on ecosystem pools to bootstrap liquidity and incentivize key pairs.

• Voter Incentives (6% - 6,000,000 ROOSTER): Reserved to reward veROOSTER holders participating in governance. The initial distribution mechanism for these incentives will be detailed in governance documentation, potentially seeded or allocated from this portion.

• Public Goods and Future Airdrops (4.5% - 4,500,000 ROOSTER): Earmarked for distribution over time to engaged users and protocols within the Plume ecosystem.

• Emissions Program Allocation (52.5% - 52,500,000 ROOSTER): This portion is designated at TGE to fuel ongoing protocol emissions. This entire allocation will be initially placed into the ROOSTER/PLUME liquidity pool on Rooster.

• Contributors (25% - 25,000,000 ROOSTER): Allocated to the core team and advisors as locked veROOSTER, ensuring long-term alignment from day one.

The ROOSTER/PLUME Pool & Emission Mechanism The ROOSTER/PLUME liquidity pool, having received the entirety of the Emissions Program Allocation, becomes the engine for ROOSTER's ongoing distribution and a primary venue for its trading. It is foundational to the token's lifecycle within the Rooster ecosystem and fulfills these vital roles through two critical functions:

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

• 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 allocated to ensure Rooster's long-term operational sustainability.

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