Owner: CrownThrive, LLC Date: 2025-08-08 Classification: Internal — DAO Treasury & Governance Token Design Framework
1. Purpose & Scope
This document defines the economic, governance, and incentive models for the CHLOM Global DAO’s native token system, including governance tokens (CHM) and utility tokens (CHLOM). It also outlines advanced tokenomics mechanisms to ensure long-term stability, member alignment, and sustainable DAO operations.
Goals:
- Establish a dual-token system for governance and operational utility.
- Align incentives across contributors, stakers, and governance participants.
- Provide mechanisms for stability, anti-manipulation, and treasury growth.
- Enable adaptability for post-launch optimization and DAO scaling.
2. Token Model Overview
Governance Token (CHM):
- Purpose: Represents voting rights, DAO proposal participation, and access to strategic governance features.
- Supply: Fixed supply minted at genesis; deflationary through burn mechanisms tied to proposal costs and penalty enforcement.
- Distribution:
- 40% Community & Contributor Rewards
- 25% DAO Treasury
- 20% Strategic Partnerships & Ecosystem Growth
- 10% Core Team & Advisors (4-year vesting)
- 5% Reserve for Emergency Governance Actions
Utility Token (CHLOM):
- Purpose: Used for service payments, staking, TLaaS license fees, and operational transactions within CHLOM services.
- Supply: Elastic supply with dynamic mint/burn controls linked to DAO service demand and treasury health.
- Distribution: Continuous issuance through staking rewards, validator incentives, and licensing revenue allocation.
3. Advanced Tokenomics Mechanisms
- Dynamic Supply Controls: Automated smart contracts adjust token supply based on:
- Treasury coverage ratio
- Active user base growth rate
- On-chain service demand metrics
- Incentive Layering: Multi-tier reward structure that incentivizes:
- Governance participation
- Liquidity provision
- Fraud detection and compliance validation contributions
- Stability Mechanisms:
- Algorithmic reserve vault to counter market volatility.
- Price bands enforced via buyback-and-burn triggers.
- Cross-chain liquidity balancing.
4. Treasury Management Integration
- Revenue Flows:
- TLaaS license sales
- Compliance-as-a-Service API fees
- Staking penalties redistributed to treasury
- Reserve Allocation:
- 50% Operational Fund
- 30% Strategic Reserve (yield-bearing stable assets)
- 20% Innovation Fund (new services & ecosystem grants)
5. Governance Incentives & Anti-Whale Measures
- Quadratic Voting: Prevents large holders from disproportionately influencing governance.
- Participation Rewards: Tokens earned for active voting and proposal submissions.
- Penalty Slashing: Token burn for malicious voting or governance manipulation.
6. Token Lifecycle & Upgradeability
- Initial Launch (Phase 4): Token contracts deployed with governance and utility separation.
- Post-Launch Optimization: Parameters adjustable only through DAO governance.
- Long-Term Evolution: Tokenomics adaptable to integrate new AI governance and compliance models in Phase 5.
7. Cultural & Community Alignment
- Mission-Linked Rewards: Bonus allocations for contributions that align with CHLOM’s compliance and licensing mission.
- Cultural Preservation Fund: Token revenue supporting archival and brand continuity initiatives.
Summary: This tokenomics and advanced tokenomics framework ensures the CHLOM Global DAO operates with economic stability, fair governance, and scalable incentives—positioning CHLOM to thrive as a global compliance and licensing DAO in both early and mature phases.