Token Economics

Understanding the ORACLE token and protocol economics.

ORACLE Token

Specifications

PropertyValue
NameOracle AI Token
SymbolORACLE
Total Supply1,000,000,000
TypeERC-20
MintableNo
BurnableYes

Token Utility

  1. Trading - Buy and sell market positions
  2. Market Creation - Pay creation fee (burned)
  3. Staking - Become a resolver
  4. Governance - Vote on protocol changes (future)
  5. DEX Trading - Trade on Uniswap V3

Trading on Uniswap V3

ORACLE tokens are tradeable on Uniswap V3 (Ethereum Mainnet):

Transaction Limits

LimitAmountPurpose
Max Transaction2% of supply (20M tokens)Prevents large dumps
Max Wallet2% of supply (20M tokens)Prevents whale accumulation

Note: DEX pools and protocol contracts are excluded from these limits.

Supply Distribution

AllocationAmountPercentage
Team150M15%
Investors200M20%
Community300M30%
Treasury200M20%
Liquidity Mining150M15%

Fee Structure

Market Creation Fee

ParameterValue
Amount10,000 ORACLE
DestinationBurned
PurposeSpam prevention

Trading Fee

ParameterValue
Rate1%
Applied ToBuy and sell
DestinationLiquidity provider

Resolution Staking

Resolvers stake tokens when committing:

  • Minimum: User defined
  • Recommended: 10% of total stake
  • Lock Period: Until finalization

Incentive Mechanisms

Resolver Rewards

Correct resolvers earn:

  1. Return of stake - Original amount back
  2. Slashing rewards - Share of incorrect resolvers' slashed tokens
  3. Reputation boost - Higher accuracy = higher reputation

Slashing Example

Resolver A: stakes 10,000, votes YES (correct)
Resolver B: stakes 10,000, votes YES (correct)
Resolver C: stakes 10,000, votes NO (incorrect)

C is slashed 10% = 1,000 ORACLE

A's reward: 10,000 + 500 = 10,500 ORACLE
B's reward: 10,000 + 500 = 10,500 ORACLE
C's return: 10,000 - 1,000 = 9,000 ORACLE

Reputation System

EventEffect
Starting Reputation100
Correct Resolution+5 (max 200)
Incorrect Resolution-10%

Economic Security

Attack Cost Analysis

Sybil Attack on Resolution:

Minimum stake: 100,000 ORACLE
To control 67%: Need 6+ malicious resolvers
Cost: 600,000+ ORACLE plus slashing risk

Game Theory

The protocol is incentive-compatible:

  • Honest behavior is always more profitable
  • Slashing creates cost for dishonesty
  • Multiple resolvers prevent collusion

Deflationary Mechanics

ORACLE supply decreases through:

  1. Market creation fees (burned)
  2. Slashing penalties (partially burned)
  3. Protocol fee burns (configurable)

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