The WindingTree tokenomics

# The WindingTree tokenomics This document defines top level vision of the LIF tokenomics of the WindingTree market protocol ## General idea - L3 with the LIF as a native token - (POS???) L3 chain nodes owners must participate the DAO and stake LIF - Deals paid in stablecoins that must be moved to the L3 via the bridge - Watchtower service that watches deals and recalculates average stablecoins/LIF conversion coefficients in relation to consumed gas fee - When someone moves (bridges) stablecoins from the Mainnet to L3 the bridge will mint in his address a proper amount of LIF calculated using conversion coefficients ## Architecture ```mermaid graph TB dao((DAO)) bridge[[Stablecoins bridge]] buyer[Buyer] supplier[Supplier] contract(Deals smart contract) supplier -->|claims deals pays gas fee in LIF|contract supplier -- bridges LIF, pays gas fees in ETH --> bridge supplier -->|exits stablecoins pays exit transfer fee in ETH|bridge dao -- manages --> bridge dao -- top up LIF balance --> bridge dao -- manages --> contract contract -- mints LIF, depending on value --> buyer contract -- sends 1% minted LIF as a fee --> dao buyer -- bridges stablecoins, pays gas fees in ETH --> bridge buyer -- bridges LIF, pays gas fees in ETH --> bridge bridge -->|credits small amount LIF for txs|buyer buyer -- pays for deals in bridged stablecoins, pays gas fees in LIF --> contract ``` ## Workflow Conventionally, the workflow can be divided into the following parts: ### LIF tokens bridging - LIF tokens can be bridged from the Mainnet to L3 without commission in equal value - When LIF tokens are bridging the tx fees in ETH must be paid by the sender ### LIF tokens rewards - On **every deal claim** the protocol smart contract calculating LIF reward using the following formula: reward = tx gas fee * inflation / stablecoin value; - `inflation` coefficient is managed by the DAO and dedicated to tuning the LIF token inflation (can be tuned to be deflated) - 1% of rewarded LIF tokens is sending to the DAO ### Stablecoins tokens bridging (Mainnet -> L3) - Stablecoins tokens can be bridged from the Mainnet to L3 without commission in equal value - When stablecoins tokens are bridging from the Mainnet the tx fees in ETH must be paid by the sender - After a bridging procedure will be finished the sender will be immediately able to start sending transactions in L3, stable coins and LIF must be on his account in the L3 - On every transaction with the bridge, the bridge credits the buyer with a small amount of LIF tokens to send at least one `deal` transaction. If the buyer account already has this amount of LIF tokens on his account it will not be credited ### L3 transactions - Every transaction gas fee inside the L3 must be paid in the native token (LIF) ### LIF tokens exits (L3->Mainnet) - When LIF tokens are moved to the bridge in the Mainnet, the tx fee in LIF must be paid by the sender - When unlocked LIF tokens are withdrawn from the bridge in the Mainnet, the tx fees in ETH must be paid by the sender ### Stablecoins exits - When stablecoins tokens are moved to the bridge in the Mainnet, the tx fee in LIF must be paid by the sender - When unlocked stablecoins tokens are withdrawn from the bridge in the Mainnet, the tx fees in ETH must be paid by the sender.