> For the complete documentation index, see [llms.txt](https://waodao.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://waodao.gitbook.io/docs/economics/tokenomics.md). # Tokenomics This section contains historical WAODAO tokenomics mechanics from earlier project phases. Some early rules describe how WAO accrual, Treasury accounting, and Future Drop logic worked or was planned before the current liquidity-focused model. The current WAODAO model is centered on NFT collection, WAO market liquidity, DEX-based token value, Friendly Pools, buybacks, grants, and ecosystem growth. ### NFT Every day pictures of the current day are created using AI, based on daily news and previous images. An NFT is minted based on the final picture. At the initial stage of the project development all intermediate pictures are stored off-chain. In the 5-year period we plan to mint a total of 1826 NFT's. According to the founders of the project, each NFT is unique only based on current characteristics of the day it was minted, there are no division into "common", "rare" or other categories: this concept shows once again that #WEAREONE, although we are different. NFT generates 0.5 WAO daily for NFTs №1-50; NFTs №51-1200: WAO generated per day = bid in ETH, but not less than 0.1. These WAO tokens can be claimed in the future, we call this mechanic "Future drop". **Each NFT has 8 characteristics in attributes:** * The region which provided the news for generating the final image. * The service or algorithm used for image generation. * The primary color code of the resulting NFT (the predominant color of the image). * The name of the main color of the resulting NFT. * Twitter trend theme. * Trending Crypto. * Trending NFT Collection. * New coin with highest volume. *Example attributes: Asia, Starryai, #353f61, Bay Of Many, Halloween, Aptos, CryptoPunks, Mythos.* Users can assess the value and rarity of an NFT by themselves depending on its number or the intensity of news on the day it was generated. Our NFTs have royalties of 8%, but some NFTs can be royalty-free. Each NFT has a Description, which contains information on the winner of the previous auction and his/her phrases, a link to the Permaweb of the previous day as well as the news of the day. Also, there is "secret ingredient" - "secret hash" (sense of this will be opened in the end of the project). You can see example of the description in [this section](/docs/development/storage.md). ### WAO tokens (Ethereum blockchain) WAO is the accounting token of the Treasury. #### Rules for accruing tokens for NFTs №1-50 WAO tokens are issued daily after a successful auction in accordance with the following formula: $$ BID\*1000 \*(1 + CR + Ci) $$ where BID is the bid of the auction winner in ETH; Calendar rate (CR) is the participation rate for the current day; Collectible index (Ci) depends from amount of owned NFTs. CR starts from 1.826 and decreases by 0.001 daily. The earlier you participate, the more WAO tokens you receive, all other things being equal. Ci starts from 0 and increases by 0.03 for each WAO NFT. **Example 1:** *the winner of the day #1 made a 10 ETH bid. User will get 28260 tokens (10 \* 1000 (1 + 1.826 + 0). Base tokens = 10 000. Calendar bonus = 18 260. Collectible bonus = 0.* **Example 2:** *the winner of the day #100 made a 5 ETH bid. User had 3 WAO NFTs on his/her address before making bid, so Ci = 0.03\*3 = 0.09. He/she will get 5 \* 1000 \* (1 + 1.726 + 0.09) = 14 080. Base tokens = 5000. Calendar bonus = 8630. Collectible bonus = 450.* **Example 3:** *last day's winner made a 50 ETH bid. User had 12 WAO NFTs on his/her address before making bid, so Ci = 0.3 (max). He/she will get 50 \* 1000 \* (1 + 0 + 0.3) = 65 000. Base tokens = 50000. Calendar bonus = 0. Collectible bonus = 15 000.* WAO tokens do not have any initial supply and cannot be issued by the team without depositing ETH as a collateral in accordance with the current CR and Ci=0. If the team decides to issue WAO tokens for any contests or to replenish the Treasury, then ETH must be put into Treasury according to the formula: 0.8\*WAO/(1000\*(1+CR)), where WAO is the number of tokens issued. **Example:** *team issued additional 1000 WAO tokens on Day #100, so 0.8\*1000/(1000\*2.726) = 0.29347029 ETH must be put into Treasury.* Also each minted NFT generates 0.5 WAO tokens daily, these tokens might be claimed by NFT holder in the future. #### Rules for accruing tokens for NFTs №51-1200: WAO tokens are issued daily after a successful auction in accordance with the following formula: $$ BID\*(ETH/WAO)\*(1 + Ci) $$ where BID is the bid of the auction winner in ETH; ETH/WAO is the ratio of ETH and WAO for this date; Collectible index (Ci) depends from amount of owned NFTs. ETH/WAO ratio is set at 2776 WAO per 1 ETH for the NFT №51; ETH/WAO ratio decreases by 0.001 daily till NFT №365. The earlier you participate, the more WAO tokens you receive, all other things being equal. Ci starts from 0 and increases by 0.01-0.03 (it depends from boost of the NFT), maximum Ci is 0.1. **Example 1:** Newcomer buys first NFT №52 for 10 ETH —> he/she gets 27 750 WAO from bid + 10 WAO per day until the end of the financial cycle. **Example 2:** DAO member buys NFT №100 for 5 ETH, also there are 3 WAO NFTs on his/her address, 2 of them have 0.03 boost each and 1 has 0.01 boost —> he/she gets 13 635 WAO from bid + 954.45 WAO as collectible bonus + 5 WAO per day until the end of the financial cycle. **Example 3:** DAO member buys NFT №200 for 3 ETH, also there are 12 WAO NFTs on his/her address. —> he/she gets 7 881 WAO from bid + 788.1 WAO as collectible bonus (max) + 3 WAO per day until the end of the financial cycle. WAO tokens do not have any initial supply and cannot be issued by the team without depositing ETH as a collateral in accordance with above rules. If the team decides to issue WAO tokens for any contests or to replenish the Treasury, then ETH must be put into Treasury according to the ETH/WAO ratio, also team will have Future drop according ETH input and number of days till the end of the financial cycle. #### NFTs 1200+ The updated NFT / WAO mechanic was activated earlier than originally planned: starting from **NFT #1200**. From NFT #1200 onward, WAODAO moved to the current market-based model: * a collector buys a WAODAO NFT on OpenSea; * the collector receives WAO tokens of equal market value, calculated at the current DEX price; * net ETH proceeds, after marketplace and network fees, support WAO buybacks on DEX; * the collector keeps the NFT as a cultural artifact and receives WAO as the liquidity-layer asset. This replaces the earlier planned `NFTs 1333+` model. The WAO amount is no longer defined by the old Treasury-value formula or future financial-cycle assumptions. Instead, it is calculated using the real market value of WAO at the time of the NFT purchase. The NFT remains the artwork. WAO is the liquidity layer. Collectors may hold WAO, trade it through available DEX liquidity, or use it in Friendly Pools where appropriate. Some special NFTs, real artworks, airdrops, or ecosystem campaigns may include additional WAO bonuses if explicitly stated. ### Cross-chain WAO: Ethereum, Solana, and Wormhole WAO is no longer limited to one chain. The original WAO token deployment is on Ethereum, where WAODAO NFTs, long-term ownership, treasury coordination, and the main ERC-20 token history are anchored. **Ethereum WAO contract:**\ `0xc3ad687c8ecb352d56393c77d19018b93a6ad21a` To expand liquidity and make WAO more useful across Web3, WAO also has a Solana SPL token deployment connected through Wormhole. **Solana WAO mint:**\ `8VXHSGipWfvkA4zueP42YrexbhcWDQKRT1uXZTFEZUn7` The Solana deployment is not a separate community token with separate tokenomics. It is part of the same WAODAO liquidity layer, designed to make WAO usable on faster, lower-cost infrastructure and to support Solana-side Friendly Pools. Wormhole is used as the cross-chain bridge layer between Ethereum and Solana. This allows WAO liquidity to expand beyond Ethereum while keeping Ethereum as the source chain for the token. The cross-chain model helps WAODAO: * create liquidity routes on multiple chains; * connect Ethereum collectors with Solana-native communities; * deploy Friendly Pools where users and partner projects are active; * reduce friction for swaps, pool participation, and future ecosystem experiments; * prepare WAO for expansion to more chains if it becomes useful for the ecosystem. At the current stage, WAO has [live liquidity across Ethereum and Solana](/docs/development/friendly-pools.md). This cross-chain liquidity model is important for the current WAODAO phase: WAO is not only an accounting token from the early Treasury model, but a live market asset used in DEX liquidity, Friendly Pools, grants, and ecosystem alignment. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://waodao.gitbook.io/docs/economics/tokenomics.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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