Tokenomics: A Sustainable Web3 Incentive Engine

(ERC-20 with Extended Functionality for Node Rewards, Staking, and Buybacks)

Core Design Philosophy

The $IDSIGN token is designed with three primary objectives:

1. Sustainable value accrual through real utility
2. Balanced incentives for network participants
3. Long-term token price appreciation through systematic buybacks and burns
4. Create a positive feedback loop where network growth drives token value, which in turn attracts more participants and further grows the network.

Token Overview

• Token Standard: ERC-20 (with ERC-677 compatibility for future oracle integrations).
• Total Supply: 1,000,000,000 $IDSIGN.
• Contract: Tax-modifiable (2% transaction tax), burnable, and ownable.

Token Allocation

Core Token Utilities

1. Staking for Human Nodes:
   • To run a Human Node (KYC + certification required), stake 10,000 $IDSIGN (slashed for malicious acts).
   • Stakers earn fees from:
     • Escrow commissions (0.5% of transaction volume).
     • Mediation fees (paid by users in $IDSIGN or ETH/USDT, auto-converted to $IDSIGN).
     • MPCvault access fees (0.1% per document access).
2. AI Node Hosting:
   • Hosting an AI Node requires a one-time fee of 100 $IDSIGN (burned).
   • AI Node operators earn 20% of mediation fees generated by their AI.
3. Transaction Tax:
   • 2% tax on all transfers (excludes staking, escrow, and buybacks).
   • Tax split:
     • 50% to Treasury (buybacks).
     • 50% burned.

Governance Rights

• Voting power proportional to staked tokens
• Minimum 5,000 $IDSIGN required for proposal submission
• Governance decides on:
  • Fee structures
  • Network upgrades
  • Treasury allocations
  • Node requirements

Revenue Streams & Buyback Mechanics

• Escrow Fees: 0.5% fee on all escrowed transactions (USDT/ETH) → 80% converted to $IDSIGN via automated buybacks.
• Mediation Fees: Paid in $IDSIGN (users can opt to pay in ETH/USDT, auto-swapped via Uniswap V3).
• Buyback-and-Burn: Treasury uses 50% of tax + 80% of escrow fees to buy $IDSIGN monthly, then burns 50% of bought tokens.

Tax-Modifiable ERC-20

// SPDX-License-Identifier: MIT
pragma solidity ^0.8.0;
import "@openzeppelin/contracts/token/ERC20/ERC20.sol";
 
contract IDSIGN is ERC20 {
    uint256 public taxRate = 200; // 2% (basis points)
    address public treasury;
 
    constructor() ERC20("idSign", "IDSIGN") {
        _mint(msg.sender, 1_000_000_000 * 10**18);
        treasury = msg.sender;
    }
 
    function _transfer(address sender, address recipient, uint256 amount) internal override {
        uint256 tax = (amount * taxRate) / 10_000;
        super._transfer(sender, treasury, tax);
        super._transfer(sender, recipient, amount - tax);
    }
}
 

Human Node Staking

// Simplified staking contract (audit required)
contract HumanNodeStaking {
    mapping(address => uint256) public stakedTokens;
    uint256 public constant MIN_STAKE = 10_000 * 10**18;
 
    function stake(uint256 amount) external {
        require(amount >= MIN_STAKE, "Insufficient stake");
        IERC20(IDSIGN).transferFrom(msg.sender, address(this), amount);
        stakedTokens[msg.sender] += amount;
    }
}
 

Launch Strategy

1. Phase 1 (Seed Round):
   • Private sale (5% supply) at $0.005/token.
   • DEX liquidity: 5% supply + 500 ETH paired on Uniswap V3.
2. Phase 2 (Public Launch):
   • Claimable TGE for public sale participants.
   • Enable staking and node registration.
3. Phase 3 (Ecosystem Growth):
   • Integrate escrow buyback bots.
   • Launch AI Node marketplace (Q2 2025).

Growth Drivers

• Node-Driven Demand: Human/AI Nodes must acquire $IDSIGN to earn fees, creating buy pressure.
• Deflationary: Burn mechanisms (tax, AI Node fees) reduce supply by ~5% annually.
• Real Utility: Token is mandatory for accessing network features (staking, dispute resolution).

1. Network Effect

• More nodes → Better service
• Better service → More users
• More users → More fees
• More fees → Higher token value

2. Increasing Utility

• Regular feature additions
• Expanding service offerings
• Integration partnerships
• Growing use cases

3. Reducing Supply

• Systematic burns
• Long-term locks
• Growing stake requirements
• Deflationary mechanics

4. Revenue Sharing

• Direct fee distribution
• Protocol revenue sharing
• Performance incentives
• Compounding rewards

Our model is inspired from Chainlink’s oracle incentives and Filecoin’s storage proofs, but adds novel mechanics (AI Node burn fees, hybrid tax/buybacks) tailored to idSign’s use cases.

Our tokenomics system ensures:

1. Sustainable token value growth
2. Fair reward distribution
3. Network security
4. Long-term participant alignment
5. Scalable economics