Cypher Quest's total token supply is 100 billion. 5 Billion is allocated to our liquidity fund, this will progressively be used to add liquidity to any appropriate trading pools over time. For a start we have created a CYPH/SOL pool on Raydium. As we progress we expect to add USDC and also use these funds to setup Farms on the platform. We will supply liquidity to any other platform or pool that we deem helpful to the ecosystem as required. We will be burning the liquidity token eventially.
5 Billion has been allocated to the dev, infrastructure and marketing wallet, these funds will be used exclusively to pay for development, marketing, hosting and other expenses related to running CypherQuest.
ALL OTHER FUNDS are in our 'quest reserve' and these can only ever be awarded to Quest hunters. That means that Cypher Quest is a fair launch project. There are no whales, VC's, owners or rug pullers sitting on the sidelines ready to dump their vested tokens on an unsuspecting community. This is great news for the future value of CypherQuest's economics.
Emission rates: There were 90 billion tokens initially in the Quest Reserve and the hunt is scheduled to last for 10 years this gives an average emission rate of just under 25 million CYPH's per day. However the actual number will be much lower as that is how many will be allocated to Quests.
Emissions work by emitting an underlying fixed rate of CYPH based on the current time. This will deplete the reserve evenly over the 10 year period. Each Quest minted will be allocated Cyph. The number of cyphs allocated to each quest is inversely proportional to the number of Quests minted per minute. If many Quests are being minted their payout will drop, if its a quiet period the payouts will increase and this will balance out to an average emission rate of 25 million per day. This algorithm is non-linear and has built in momentum that tends to smooth out the Quest's total value. For example if a Quest was minted after a one hour time period, and a 2nd Quest was minted 1 second later. The 2nd Quest would get less total CYPH's allocated to it, but it would not be proportionate to the difference in time. Most likely the second Quest would receive around half the value of the first one, if another was Minted immediately after this, that would again get half of the prior and so on. There is a fixed recharge rate of around 30 cyphs/second. So generally the amount of CYPH allocated to each Quest will be a function approximately inversely proportion to how many Quests are being minted in the given time period.
Economics: With an emission rate of 25 million per day there may initially be downward pressure on price if users choose to immediately cashout of Cypher Quest, however the initial recovery rate from Quests will also be very low as newly minted Quests distribute their Cyph linearly over the course of their lifetime, typically one year. The inflation which may rise after 6 months should then exponentially decreases over time as the user base increases. As the user base grows, commercial opportunities arise to drive users to target locations using boosting. The boosting mechanism has a built in burn rate of 5%, so as soon as this becomes an effective means of advertising we expect the token supply to start to become static or even deflationary. Our modelling has suggested this may occur in 2 to 3 years. So with high demand, rewards will drop, but price action should increase faster due to the burn rate. With every doubling of Quest creators, there will be an upward pressure on advertising price equal to the proportionate growth in network usage, so we expect the underlying fair price to track the Quest networks growth.
Our initial liquidity price in SOL will be 1e-9. For the first 6 months we expect this price to be fairly static or even drop slightly before the momentum of users grows this. 6-12 months into our adventure we expect a strong and continuous price growth throughout the remaining years with a fair and stable trading price expected to reach 5e-3 SOL or a range between 0.01 - 0.04 USD. This would value the ecosystem between 1 and 4 billion USD. These prices are modelled on use cases and not speculative pricing. Obviously that is not how pricing works in the real world so do not use this information for investing or consider this investment advice.
IMPORTANT : this is not investment advice.