🧩 Tokenomics Overview

💠 LUX — XPL-Aligned with Mint Expansions and Daily Rebase

• Role: Elastic XPL tracker with two stabilization tools.

• Mint expansions (epochly): when TWAP(LUX/XPL) ≥ 0.99, protocol mints LUX per epoch based on deviation (initial cap ~1 – 1.5% of supply/epoch).

• Daily Rebase (once per day): automatically adjusts total supply up to +1% (expansion) / −2% (contraction) if TWAP is outside 0.98–1.08 XPL.

• Allocation of newly minted LUX (when above peg):

  • 50% → Boardroom Rewards (paid this epoch)

  • 40% → FrogsClub Vault (treasury growth & POL)

  • 10% → Dev & Marketing

💎 ARC — Partially-Collateralized USDT0 Stable

• Peg: 1.00 USDT0.

• Mint: deposit α USDT0 + burn (1−α) worth of FUSION.

• Redeem: burn ARC → receive α USDT0 + (1−α) FUSION (or from a redemption buffer).

• Collateral leg: USDT0 is staked on Aave to earn on-chain yield, used for ARC buybacks each epoch.

🎖️ FUSION — Share Token

FUSION is the value & coordination token of Fusion Protocol. Holders:

• Stake in the Boardroom to receive ARC every epoch (6h) and LUX during above-peg (≥ 0.99 XPL) epochs.

• Back ARC minting: each ARC mint burns FUSION for the (1−α) leg → structural demand sink.

• Bootstrap liquidity: MasterChef emissions reward LPs (Curve LP ERC-20s, not NFTs).

• Govern (phased-in): starts with multisig + timelock; can move to Snapshot/on-chain later.

Max supply: 100,000 FUSION (hard-capped)

Bucket	%	Tokens (FUSION)	Vesting / Notes
Liquidity Mining	35%	35,000	~36 months, bi-weekly decay; emissions stop when bucket empties
FrogsVault / Treasury & POL	30%	30,000	24-month linear; POL seeding, emergency ops, buybacks
Team (Dev & Marketing)	15%	15,000	24-month linear; multisig-guarded
Ecosystem / Partnerships / Grants	5%	5,000	12-month streaming; milestone releases
Redemption & Stability Reserve	10%	10,000	Funds ARC redemption leg; replenished via buybacks
Community / Airdrops	2.5%	2,500	Programmatic; 6-month vest on larger grants
Initial Liquidity & MM	2.5%	2,500	Seed liquidity; lock/vest as appropriate
Total	100%	100,000

Genesis mint: only non-emissions buckets mint at TGE; the 35% mining bucket remains unminted and is released via MasterChef on schedule.

Emissions (MasterChef)

• Emission bucket: 35,000 FUSION (maximum)

• Decay: 5–10% bi-weekly (governable). Example: Eₙ = E₀ × (1–δ)ⁿ, δ∈[0.05, 0.10].

• Initial weights (first 4 weeks): ARC/USDT0 LP 50%, FUSION/XPL LP 30%, LUX/XPL LP 20% (starts once LUX/XPL pool is live).

Sinks & Buybacks

• ARC mint burn: (1−α) worth of FUSION is burned per ARC mint → enduring sink.

• Buyback & burn/lock: PSM & fee revenues buy FUSION to burn or lock (anti-dilution).

• Redemption Reserve: ARC redeems pay the FUSION leg from reserve, preserving the hard cap.