💹 Dynamic Economy

SEAL360's economic model is designed for sustainable growth through multiple revenue streams and automated fee distribution.

Revenue Streams

1. Smart Contract Audits

Tier	Complexity	Price	Payment
Basic	Simple contracts (< 500 LOC)	$5,000	50% S360 + 50% USDT
Standard	Medium contracts (500-2000 LOC)	$15,000	50% S360 + 50% USDT
Advanced	Complex DeFi (2000+ LOC)	$35,000	50% S360 + 50% USDT
Enterprise	Full protocols (10+ contracts)	$50,000+	Custom

Volume Target 2026: 100 audits × $15k avg = $1.5M revenue

2. Launchpad Commission

Service	Fee	Payment Method
IDO Hosting	5% of tokens raised	Project token
KYC/AML	Included	-
Marketing Support	Included	-
Liquidity Lock	Included	-

Volume Target 2026: $50M raised × 5% = $2.5M in fees

3. Bonding Curve Trading (Subnet-ready)

Key principle: buys/sells and fees are paid in the native gas token of the network.

On Avalanche Fuji/C-Chain: native token is AVAX (testing environment)
On the SEAL360 Subnet: native token is S360 (production target)

Fee model (by phase)

Phase 1 (S360BondingCurve): fixed sell fee (on-chain), collected in native token
Phase 2 (S360BondingCurveDynamic): dynamic sell fee tiers (10% -> 0.5%), collected in native token

Important: tokens sold are not burned by default. They are transferred to the curve contract and totalSold is reduced.

Buy example (native token):
- User pays: 10 (native)
- Curve transfers tokensOut to user

Sell example (native token):
- User sells: 10,000 S360
- Curve sends: refundAmount (native) to seller
- Curve sends: fee (native) to feeCollector / fee distribution
- Curve receives: 10,000 S360 (tokens), updates totalSold

Units (Subnet gas)

Assuming 18 decimals:

1 S360 = 1e18 bud
1 bud = 1e-18 S360 (smallest unit)
1 gS360 = 1e-9 S360 = 1e9 bud (gas-price unit)

Volume target 2026: depends on network adoption and is measured in native token; USD conversions are illustrative only.

4. Flash Loans

Fee: 0.09% (9 basis points)
Minimum: 1,000 S360
Maximum: Total supply

Example:
Loan amount: 1,000,000 S360
Fee: 1M × 0.09% = 900 S360
Repayment: 1,000,900 S360

Volume Target 2026: $5M flash loan volume × 0.09% = $4.5k in fees

5. Staking Rewards Distribution

Protocol fees fund staking rewards:

Annual Fee Collection: $4.05M
Allocated to Stakers: 33.33% = $1.35M
In S360 (@ $0.14): 9.64M S360/year

Average Staked: 100M S360
APY: 13.5M / 100M = 13.5%

Fee Distribution System

Automated 3-Way Split

ALL PROTOCOL FEES
       ↓
[FeeDistribution Contract]
       ↓
  ┌────┼────┐
  ↓    ↓    ↓
33.33% 33.33% 33.34%
  ↓    ↓    ↓
Treasury Stakers Growth

Destinations:

Treasury (33.33%) → Governance-controlled reserves
Stakers (33.33%) → Passive income for holders
Growth Fund (33.34%) → Marketing & expansion

Token Economics

Supply Dynamics

Fixed Supply: 1,296,360,012 S360 (immutable)

Locked Tokens (Year 1):

Category	Amount	% Supply	Duration
Founder Vesting	108M	8.33%	4 years
Staking Lock	108M	8.33%	1 year
R&D Vault	24M	1.85%	5 years
Masternode Stakes	~100M	7.71%	Indefinite
TOTAL LOCKED	340M	26.22%	Variable

Circulating Supply:

Year 1: 956M S360 (73.78%)
Year 2: 983M S360 (75.84%)
Year 5: 1,064M S360 (82.08%)

Value Flywheel

1. Projects pay for audits (in S360)
         ↓
2. Fees → Stakers (33.33% APY)
         ↓
3. High APY attracts more stakers
         ↓
4. More staking → Less circulating supply
         ↓
5. Scarcity → Price increases
         ↓
6. Higher price → More projects want certification
         ↓
7. More audits → More fees
         ↓
[LOOP back to step 1]

Bonding Curve Dynamics

Price Discovery Mechanism

Formula: Bancor Continuous Token Model

P(x) = P₀ × (1 + x/R)^(1/r)

Where:
P(x) = Price after x tokens bought
P₀ = Initial price (0.14 USD / 0.01 AVAX)
x = Tokens bought
R = Reserve supply (108M S360)
r = Reserve ratio (0.5)

Price Curve Visualization

Price ($)
  │
2.0│                                    ╱
   │                                 ╱
1.5│                              ╱
   │                           ╱
1.0│                        ╱
   │                     ╱
0.5│                  ╱
   │               ╱
0.1│___________╱________________________
   │
   └────────────────────────────────────> Tokens Bought
     0    100M   200M   500M    1B

Protection Mechanisms

1. Per-Transaction Limits:

MAX_PURCHASE_PER_TX = 1,080,000 S360  // 1.08M (0.083% supply)
MAX_PURCHASE_PER_BLOCK = 108,000 S360 // 108k per block

Rationale: Prevents single-transaction price manipulation

2. Same-Block Buy/Sell Prevention:

mapping(address => uint256) private lastBuyBlock;
 
function sellTokens() external {
    require(block.number > lastBuyBlock[msg.sender], "Same block");
    // ...
}

Rationale: Prevents flash loan sandwich attacks

3. Slippage Protection:

function buyTokens(uint256 minTokensOut, uint256 deadline) external payable {
    require(block.timestamp <= deadline, "Expired");
    uint256 tokensOut = calculateReturn(msg.value);
    require(tokensOut >= minTokensOut, "Slippage");
    // ...
}

Rationale: Users set acceptable price range

Economic Attack Analysis

Flash Loan Attack

Scenario: Attacker tries to manipulate price

ATTACK:
1. Borrow 10M S360 (flash loan)
2. Dump on bonding curve → crash price 20%
3. Buy back at lower price
4. Repay loan + 0.09% fee
5. Keep profit?

COSTS:
- Flash loan fee: 10M × 0.09% = 9,000 S360 = $900
- Gas: ~$5
- Total: $905

POTENTIAL PROFIT:
- Price drop: 20% × 10M = 2M S360 worth
- At $0.14: $280,000 theoretical

MITIGATIONS:
❌ MAX_PURCHASE_PER_TX: Can't dump 10M (limit 1.08M)
❌ Same-block prevention: Can't buy back same block
❌ Slippage protection: Users protected from price impact

ACTUAL PROFIT: $0 (attack impossible)

Tested in: SecurityCritical.v3.3.2.test.cjs → TEST 4

MEV Sandwich Attack

Scenario: Front-run user transactions

ATTACK:
1. Detect user buy (10 AVAX)
2. Front-run: Buy 5 AVAX → price increases
3. User buys at inflated price
4. Back-run: Sell → profit

ATTACKER PROFIT:
- Price increase: ~5% on 5 AVAX = $0.25
- Gas costs: $0.04
- Net: $0.21

USER PROTECTION:
✅ minTokensOut parameter (5% slippage tolerance)
✅ deadline parameter (tx expires if delayed)
✅ If slippage > 5% → tx reverts

FEASIBILITY: LOW
- Profit too small ($0.21)
- High competition (other bots)
- Risk of revert

Tested in: SecurityCritical.v3.3.2.test.cjs → TEST 5

Governance Attack

Scenario: Hostile takeover attempt

REQUIREMENTS:
- Quorum: 4% of supply = 51.8M S360
- Control: 51% of quorum = 26.4M S360

ATTACK COST:
- Tokens needed: 26.4M S360
- Price @ $0.14: $3,702,404
- Bonding curve price (after buying): ~$0.15
- Actual cost: ~$3,000,000

TIMELOCK PROTECTION:
- Proposal delay: 1 day
- Voting period: 7 days
- Timelock: 48 hours
- TOTAL: 10 days for community to respond

COMMUNITY DEFENSE:
✅ Detect attack in proposal phase
✅ Coordinate counter-votes
✅ Emergency pause if needed
✅ Social intervention (exchanges freeze)

FEASIBILITY: VERY LOW
- Cost: $3M+
- Time: 10 days (easy to detect)
- ROI: Negative (protocol value < attack cost)

Projected Financials

Year 1 (2026) - Conservative

Revenue Stream	Amount
Audits (50)	$750k
Launchpad ($20M volume)	$1M
Trading Fees	$100k
Flash Loans	$2k
TOTAL REVENUE	$1.85M

Expenses:

Team salaries: $600k
Marketing: $300k
Operations: $150k
TOTAL EXPENSES: $1.05M

NET PROFIT: $800k
Margin: 43%

Year 3 (2028) - Target

Revenue Stream	Amount
Audits (200)	$3M
Launchpad ($100M volume)	$5M
Trading Fees	$500k
Flash Loans	$20k
TOTAL REVENUE	$8.5M

Expenses:

Team (20 people): $2M
Marketing: $1M
Operations: $500k
TOTAL EXPENSES: $3.5M

NET PROFIT: $5M
Margin: 59%

Token Price Projections

Conservative Scenario

Market cap target: $250M (year 3)
Circulating supply: 1B S360
Price: $250M / 1B = $0.25
ROI from $0.14: 1.79x

Optimistic Scenario

Market cap target: $1B (year 3)
Circulating supply: 900M S360 (locked tokens)
Price: $1B / 900M = $1.11
ROI from $0.14: 7.9x

Assumptions

Conservative:

10% market share of Avalanche audit market
$100M IDO volume (5% of current leaders)
200 audits/year

Optimistic:

25% market share
$500M IDO volume (20% of leaders)
500 audits/year

Next Steps

Staking System 💰 Tokenomics