Token Release, TGE and Liquidity

We believe in building a token economy that’s fair, transparent, and directly tied to real-world value. That’s why we’ve designed our token, POV, to be released in a way that benefits the entire community—linking its supply directly to the usage of our AI models and agents. This approach ensures that every interaction with our platform naturally supports the value of POV, creating a system that’s sustainable and community-focused. Here’s a clear breakdown of how it works and why it matters.

How Our Token Release Mechanism Works

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Token Allocation: A Community-Centric Approach

80% of POV Tokens – Released Through AI Usage:
These tokens aren’t flooded into the market all at once. Instead, they’re gradually released as users interact with our AI models and agents. This ensures that token supply grows in step with actual demand, keeping the ecosystem balanced.
20% of POV Tokens – Managed by the Foundation:
- 10% Sold to Onboard the DAO Community: This portion is sold early on to bring in DAO members who will help shape the platform’s future.
- 10% Retained for Growth: These funds are reinvested into development, grants, and marketing to fuel the platform’s expansion and support community initiatives.

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Phase 1: Releasing Tokens Through AI Usage

When users engage with our AI models or agents, here’s what happens behind the scenes:

AI Usage Triggers Token Purchases:
- The system uses USD to buy POV tokens from a dedicated smart contract.
- The purchase price is based on the current market price from the liquidity pool. If the pool isn’t yet established, we use a starting fully diluted valuation (FDV) of $45 million to ensure fairness.
Foundation Receives the USD:
- The USD from the token purchase goes to the foundation.
Reinvestment into the Liquidity Pool:
- The foundation splits the USD evenly:
  - Half is used to buy more POV tokens.
  - Half is converted to USDC.
- Both the POV tokens and USDC are then deposited into the liquidity pool, helping to stabilize the market price.

This process ensures that each AI interaction not only releases tokens gradually but also strengthens the liquidity pool, supporting the token’s value in a balanced way.

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Phase 2: Supporting POV After the Contract is Drained

Once all tokens from the smart contract have been released:

Direct Purchases from the Liquidity Pool:
- USD from AI usage is converted entirely to USDC.
- This USDC is then used to buy POV tokens directly from the liquidity pool.

This method continues to drive demand for POV with every AI interaction, naturally supporting its price as the platform grows.

Why This Approach Benefits the Community

1. Organic Growth Driven by Real Usage

Market-Based Pricing:
The token’s value is tied to actual demand. Early on, the price is set by the liquidity pool or, if needed, a starting FDV of $45 million, ensuring a fair baseline.
Demand Reflects Platform Activity:
Every AI interaction channels value back into the ecosystem, creating a direct link between usage and token value. This means the more the platform is used, the more demand there is for POV.

2. Stability and Transparency

Balanced Liquidity:
By splitting USD into equal parts for buying POV and USDC, and depositing both into the liquidity pool, we maintain a stable price ratio. This keeps the market steady and ensures every transaction reflects true market conditions.
Fully Transparent Process:
Every step—from token purchases to liquidity pool adjustments—is executed on-chain, making the entire system visible and verifiable. This transparency builds trust and confidence in our community.

3. A Community-First Philosophy

Fair Token Release:
Tokens are released gradually, based on real usage, avoiding arbitrary supply increases. This keeps supply aligned with demand, benefiting users rather than speculators.
Reinvestment in Growth:
The foundation’s 20% allocation isn’t for profit—it’s used to onboard early community members and fund development, grants, and marketing. This ensures that the platform’s success is shared across the ecosystem.

In Summary

Token Distribution:
80% of POV tokens are released through AI usage, and 20% is managed by the foundation (10% for DAO onboarding, 10% for growth initiatives).
During the Contract Phase:
AI usage triggers token purchases from the contract at market price. The USD is then split to buy POV and USDC, which are added to the liquidity pool to stabilize the price.
After the Contract is Drained:
All USD from AI usage is converted to USDC and used to buy POV directly from the liquidity pool, supporting the token’s value with each interaction.

This mechanism ensures that POV’s release is tied to real-world activity, maintains market stability, and fosters a transparent, community-driven ecosystem. Every time someone uses our AI models or agents, it strengthens POV and benefits everyone involved.

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We are opening the pre-sale of the Foundations tokens next month to onboard the first members of our DAO.

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