Tokenomics
The native, digital, cryptographically-secured token of the cypher protocol (ticker symbol $CYPH) is a transferable representation of attributed governance and utility functions specified in the protocol/code of the cypher protocol, and is designed to be used solely as an interoperable utility token on the protocol/network.
So as to allow decentralised community governance for the network, $CYPH holders may propose and vote on on-chain governance proposals to determine future features and/or parameters of the cypher protocol, with voting weight calculated in proportion to the tokens staked (the right to vote is restricted solely to voting on features of the cypher protocol; it does not entitle $CYPH holders to vote on the operation and management of the Company, its affiliates, or their assets or the disposition of such assets to token holders, or select the board of directors of these entities, or determine the development direction of these entities, does not constitute any equity interest in any of these entities or any collective investment scheme; the arrangement is not intended to be any form of joint venture or partnership).
$CYPH is a non-refundable functional utility token which will be used as the economic incentives which will be distributed to encourage users to contribute to and participate in the ecosystem on the cypher protocol, thereby creating a mutually beneficial system where every participant is fairly compensated for its efforts. $CYPH is an integral and indispensable part of the cypher protocol, because without $CYPH, there would be no incentive for users to expend resources to participate in activities or provide services for the benefit of the entire ecosystem on the cypher protocol. Given that additional $CYPH will be awarded to a user based only on its actual usage, activity and contribution on the cypher protocol and/or proportionate to the frequency and volume of transactions, users of the cypher protocol and/or holders of $CYPH which did not actively participate will not receive any $CYPH incentives.
For example, $CYPH token incentives will be distributed to minters to incentivize them to engage with the protocol and keep capital locked within the protocol.
Similarly, users would need to be incentivized to play the role of liquidity providers to ensure the proper functioning of the protocol. There are three types of liquidity providers leveraged by the protocol: (a) LPs that provide collateral to mint synthetic assets, (b) LPs that provide assets to the lending pools, and (c) LPs that help to make markets for exchanges. As compensation for opportunity costs, these liquidity providers who help to promote adoption by including assets to liquidity pools in exchange for the relevant LP tokens would be rewarded with $CYPH tokens (i.e. "farming" on the cypher protocol), according to each user's relative contribution after various adjustment and correction parameters.
By distributing $CYPH in this manner, it ensures that the governance token will be distributed primarily to key network contributors and allow them to have a say in protocol parameters.

Token distribution

The overarching goal of the cypher token policy is to encourage long term health and stability for the protocol. This is done by aligning a core team of early contributors and supporters, bringing in strategic partners and the general public, then reinforcing positive change by allocating tokens based on governance to development.

Public Sale (0.65%)

6,500,000 tokens will be sold to the public via an initial decentralized offering and will be available for trading upon issuance.

Strategic Sale (6.50%)

65,000,000 tokens will be sold to strategic partners who can make a significant impact to the launch, scaling, and long-term success of the protocol such as top tier venture funds and institutional market participants. These tokens will incentivize long term involvement and will have a 5% initial unlock and carry a six month cliff post-public sale with monthly unlock over the subsequent twenty-three months.

Seed Sale (6.00%)

60,000,000 will be sold to strategic partners who can make a significant impact to the launch, scaling, and long-term success of the protocol such as top tier venture funds and institutional market participants. Select early backers in the protocol will also participate in this allocation of tokens. These tokens will incentivize long term involvement and will have a 5% initial unlock and carry a six month cliff post-public sale with monthly unlock over the subsequent twenty-three months.

Advisory Tokens (3.85%)

38,500,000 tokens will be provided to our legal counsel and strategic advisors in exchange for long term partnership with the protocol. These tokens will have a 2.5% initial unlock four months post-public sale followed by a further six month cliff and monthly remaining unlock over the subsequent twenty-three months.

Partnership Tokens (3.0%)

30,000,000 tokens will be reserved for partners as voted on by the community or, in the initial stages, by core contributors to the cypher protocol. The initial recipients may be companies providing company research.

Community Tokens (59.35%)

In addition to the partnership tokens, 593,300,000 tokens will be reserved for the community. This includes yield payments to stakers, minters (LPs), as well as uses voted on by the community.

AMM / Liquidity Tokens (0.65%)

6,500,000 tokens will be reserved to support liquidity of initial markets.

Team (20.0%)

200,000,000 tokens are reserved for early contributors. These tokens come with vesting schedules typical for technology startups. These tokens carry a ten-month cliff post-public sale with monthly unlock over the subsequent thirty-five months.

Disclaimer

$CYPH does not in any way represent any shareholding, participation, right, title, or interest in the Company, the Distributor, their respective affiliates, or any other company, enterprise or undertaking, nor will $CYPH entitle token holders to any promise of fees, dividends, revenue, profits or investment returns, and are not intended to constitute securities in Singapore or any relevant jurisdiction. $CYPH may only be utilized on the cypher protocol, and ownership of $CYPH carries no rights, express or implied, other than the right to use $CYPH as a means to enable usage of and interaction within the cypher protocol. In particular, it is highlighted that $CYPH: (a) does not have any tangible or physical manifestation, and does not have any intrinsic value (nor does any person make any representation or give any commitment as to its value); (b) is non-refundable and cannot be exchanged for cash (or its equivalent value in any other digital asset) or any payment obligation by the Company, the Distributor or any of their respective affiliates; (c) does not represent or confer on the token holder any right of any form with respect to the Company, the Distributor (or any of their respective affiliates), or its revenues or assets, including without limitation any right to receive future dividends, revenue, shares, ownership right or stake, share or security, any voting, distribution, redemption, liquidation, proprietary (including all forms of intellectual property or licence rights), right to receive accounts, financial statements or other financial data, the right to requisition or participate in shareholder meetings, the right to nominate a director, or other financial or legal rights or equivalent rights, or intellectual property rights or any other form of participation in or relating to the cypher protocol, the Company, the Distributor and/or their service providers; (d) is not intended to represent any rights under a contract for differences or under any other contract the purpose or pretended purpose of which is to secure a profit or avoid a loss; (e) is not intended to be a representation of money (including electronic money), security, commodity, bond, debt instrument, unit in a collective investment scheme or any other kind of financial instrument or investment; (f) is not a loan to the Company, the Distributor or any of their respective affiliates, is not intended to represent a debt owed by the Company, the Distributor or any of their respective affiliates, and there is no expectation of profit; and (g) does not provide the token holder with any ownership or other interest in the Company, the Distributor or any of their respective affiliates.
Notwithstanding the $CYPH distribution, users have no economic or legal right over or beneficial interest in the assets of the Company, the Distributor, or any of their affiliates after the token distribution.
To the extent a secondary market or exchange for trading $CYPH does develop, it would be run and operated wholly independently of the Company, the Distributor, the distribution of $CYPH and the cypher protocol. Neither the Company nor the Distributor will create such secondary markets nor will either entity act as an exchange for $CYPH.