Tokenomics
GNDX Protocol uses a dual-token architecture where $GNDX and $GAME have completely separate and non-overlapping economic roles.
Dual Token Architecture
| $GNDX (Index Token) | $GAME (Governance Token) | |
|---|---|---|
| Purpose | Index product — sector exposure | Protocol equity — govern the protocol |
| Supply | Elastic, no cap | Fixed at 200,000,000 |
| Value driver | NAV of the underlying basket | Protocol revenue + governance power |
| Who holds it | Investors seeking Web3 gaming exposure | Governance participants and stakers |
| How acquired | Mint via MintEngine with USDC | Initial distribution rounds, liquidity mining, exchanges |
| Governance rights | None | Yes — via veGAME lock |
| Staking yield | No | Yes — fee revenue via veGAME |
The analogy: $GNDX is like owning SPY (the S&P 500 ETF). $GAME is like owning BlackRock stock.
$GAME Supply Schedule
$GAME total supply is fixed at 200,000,000 tokens — minted once at contract deployment to the treasury multisig. No future minting is possible.
| Allocation | Tokens | % | Vesting |
|---|---|---|---|
| Community & Ecosystem | 80,000,000 | 40% | 4-year linear — governance rewards, grants, Council compensation |
| Protocol Treasury Reserve | 40,000,000 | 20% | 3-year linear — operations, legal, marketing |
| Founding Team | 30,000,000 | 15% | 1-year cliff, 3-year linear |
| Private Seed Round | 24,000,000 | 12% | 6-month cliff, 18-month linear |
| Public Presale | 16,000,000 | 8% | 3-month cliff, 12-month linear (clock starts after qualifying $GNDX mint) |
| Advisors & Partners | 10,000,000 | 5% | 6-month cliff, 2-year linear |
This is the planned $GAME tokenomics. No private seed round or public presale has been conducted yet. Final allocation and round structure will be confirmed prior to TGE and may differ pending governance and legal design.
Presale participants' 3-month vesting cliff would not begin until they have minted at least their full presale USD value in $GNDX. This is enforced on-chain by PresaleVesting.sol — it is not a policy requirement.
Revenue Model
GNDX Protocol generates revenue from three fee streams:
| Fee | Rate | Hard Ceiling |
|---|---|---|
| Streaming (management) fee | 0.75%/year | 1.50%/year (hardcoded) |
| Mint fee | 0.10% | 0.25% (hardcoded) |
| Redemption fee | 0.20% | 0.50% (hardcoded) |
All fee rates are governance-adjustable within the hard ceilings, which are enforced in the smart contracts. A governance vote that attempts to set fees above the ceiling will revert at execution.
Fee Revenue Distribution
All protocol revenue flows to FeeCollector.sol and is distributed weekly:
| Destination | Default % | Governance Bounds |
|---|---|---|
| Treasury multisig | 65% | 60%–70% |
| $GAME buyback-and-burn | 10% | 10%–20% |
| $GAME buyback-and-distribute to veGAME | 25% | 20%–30% |
The three percentages must always sum to 100%.
TVL impact on annual revenue:
| TVL | Annual Streaming Fee |
|---|---|
| $5M | ~$37,500 |
| $10M | ~$75,000 |
| $25M | ~$187,500 |
| $50M | ~$375,000 |
$GNDX Fee Drag
The streaming fee has a predictable impact on $GNDX NAV:
| Period | NAV drag | $10,000 position net |
|---|---|---|
| 1 year | 0.75% | $9,925 |
| 2 years | 1.49% | $9,851 |
| 3 years | 2.22% | $9,778 |
This is comparable to Vanguard ETF expense ratios and is fully disclosed and calculable on-chain.
Bootstrapping Incentive
If a public presale is conducted, the on-chain mint condition encoded in PresaleVesting.sol creates a direct link between governance token distribution and protocol TVL. Presale participants would need to deposit USDC into GNDX before their governance tokens begin vesting — ensuring that the protocol's earliest governance holders are also its earliest index holders.
For more detail on $GAME token mechanics, see $GAME Token and veGAME.
See also: $GNDX Token · Revenue Model (Whitepaper §8)