Token Economics
$NOTCH — Staking, Buyback, and the Deflationary Flywheel
Token Parameters
| Token | $NOTCH |
| Standard | ERC-20 |
| Total Supply | 1,000,000,000 (fixed, never increases) |
| Burn Mechanism | Deflationary via buyback-and-burn |
| Chain | Arbitrum One |
Distribution
Vested over 4 years: 15% predictor rewards, 10% early user airdrop, 10% ecosystem grants, 5% liquidity mining
Governed by token holders
4-year vest, 1-year cliff
DEX launch on Uniswap V3 (Arbitrum), paired with USDC
Future exchange listings, partnerships, market-making
Utility
Prediction Staking
Predictors must stake $NOTCH to commit predictions. Creates forced demand — every new predictor must acquire and lock tokens. Anti-spam mechanism.
Pass Payments
Alpha Passes can be priced in $NOTCH or ETH.
Governance
Token holders vote on protocol parameters: scoring weights, fee structures, oracle selection.
Fee Discount
Holding $NOTCH reduces marketplace fees.
Index Collateral
Alpha Indices require $NOTCH collateral from creators.
Fee Flow & Buyback-Burn
All protocol revenue flows through the Treasury contract with automatic allocation:
Buyback + Burn
Market-buy $NOTCH with ETH fees, then permanently burn. Supply only decreases.
Predictor Rewards
Distributed to high-score predictors. Incentivizes quality.
Treasury Reserve
Development, grants, emergencies. Governed by token holders.
The Deflationary Flywheel
More predictors → More passes traded → More fees collected → More $NOTCH bought back + burned → Less supply → Higher $NOTCH price → More valuable staking rewards → More predictors attracted → Flywheel continues
After the initial 4-year community pool vest completes, no additional token emissions occur. Supply only decreases through burns.
Airdrop Criteria
The 10% early user airdrop (100,000,000 $NOTCH) is allocated to anyone who committed AND revealed AND resolved at least 20 predictions during the pre-token phase:
- Weighted by Notch Score (better predictors get more tokens)
- Bonus multiplier for consecutive months of activity
- Excluded: accounts with <50% reveal rate (committed but never revealed = spam)