Olympus Pact Economic Model Design
The economic model of Olympus Pact carries a structural reconstruction of the system following deep reflection on the previous generation of protocols. It no longer relies on high-inflation incentives as the main driving force but instead builds a sustainable, self-balancing, sovereignty-logic-based on-chain wealth system based on the pillars of “PHI Sovereign Staking | Intelligent Redemption | Dual Compound Interest.” Within this system, all economic behaviors revolve around four core elements: “Value Anchoring, Participation Incentives, Wealth Distribution, Governance Signing,” forming a closed yet evolvable protocol economic loop.
4.1 PHI Token Overview
PHI is the sovereign credential token of the Olympus Pact protocol, carrying dual attributes of system currency and sovereign rights. Users can obtain PHI through exchanges or platforms and stake it for sovereignty, thereby participating in the entire protocol economic system. The value of PHI is reflected not only in its market price volatility but also in its comprehensive coverage of multi-dimensional rights such as dividend sharing, governance weight, asset endorsement, and bond priority.
Total Supply and Distribution Mechanism: PHI has no pre-mining and no private sales. All issuance is triggered by protocol behaviors. Early circulation volume is controlled at a low level, and all new PHI must be gradually released through the sovereign staking mechanism, forming a naturally decelerated liquidity release structure.
Circulation and Lock-up Model: PHI initially circulates mainly through the protocol. Users receive immediate balances after staking, with dividends released in cycles. Large holders or ecosystem contributors will follow phased lock-up arrangements based on signing authority and staking volume, binding them long-term with the system.
4.2 Sovereign Staking | Intelligent Redemption | Dual Compound Interest
The core staking mechanism of Olympus Pact is “PHI Sovereign Staking | Intelligent Redemption | Dual Compound Interest,” which builds a long-term, stable, and trust-based economic relationship between protocol participants and the system:
The minimum staking threshold for users is only 0.1 PHI, and staking immediately triggers on-chain modular contract logic;
Dividends are automatically distributed on-chain every 12 hours, with an average yield of about 0.6% per distribution (dynamically adjusted based on treasury asset expansion);
Earnings compound on a per-cycle basis, with an estimated monthly return of around 43%, and a theoretical annualized yield of up to 79x (assuming continuous participation and no system balancing triggered);
All staking and dividend behaviors are executed automatically on-chain, ensuring transparency and auditability.
This mechanism replaces the volatile and inflationary old-style “APY” incentives with stable, rhythmically clear block-dividend distributions, effectively enhancing user long-term engagement and system capital robustness.
4.3 Community Consensus System | Dynamic Reward Mechanism
The participation feedback mechanism of Olympus Pact is no longer limited to capital input but instead comprehensively considers users’ network expansion behaviors and community engagement contributions. Based on the “Community Consensus Index,” daily system output is allocated:
All invitation behaviors can earn a 10% equivalent return of the invitee’s earnings;
The protocol sets a “Sigma Community Consensus Index Pool,” which accounts for 80% of daily system output and is dynamically allocated based on a formula;
Consensus weight M is composed of total network contribution power and individual departmental power, while coefficient N is tied to staking amount and time dimensions, ensuring fair incentives for large holders, early participants, and long-term active users.
This system is based on the principle of “Behavior is Rights, Expansion is Dividend,” transforming protocol incentives from “stacking APY” to “stacking Contribution,” and achieving a structural leap in DeFi incentive structures.
4.4 Treasury Asset Reserve System | Bond Distribution Protocol
Olympus Pact introduces a “Treasury Asset Reserve System” to anchor protocol earnings to real asset growth:
The protocol treasury includes USDC, gold, carbon assets, and will expand to include RWAs like government bonds and real estate in the future;
All bond sales are issued at discounted prices below market, establishing a priority channel for capital acquisition;
Referrers receive 3% of the referred user's bond purchase amount, released via a 5-day linear unlocking mechanism to avoid short-term sell pressure;
Participation in bond distribution requires holding staking rights equivalent to 1000U in PHI to ensure participants are sovereignly bound.
This mechanism enables Olympus Pact to leap from a DeFi liquidity protocol to a RWA asset-anchored protocol, injecting a measurable external value foundation into the on-chain ecosystem.
4.5 Dual-Track Adjustment Mechanism | Deflationary Game Loop
To prevent excessive inflation and uncontrolled reward accumulation within the system, Olympus Pact has designed a “Reward Cap + Burn Acceleration” dual-track adjustment mechanism:
When the cumulative dividends of a single user account reach 500% of their staking principal, the system’s cap mechanism is triggered;
To continue receiving rewards, the user must burn an equivalent amount of PHI to initiate the next reward cycle, with up to 5x re-circulation incentives available;
The higher the burn ratio, the shorter the reward release cycle. For example, burning 25% can reduce the unlock period from 180 days to just 15 days.
This design breaks the scenario of “infinite redemption” through capping mechanisms, guiding users to achieve internal convergence and continuous regeneration of the system via burning and re-staking, forming a real deflationary game loop within the protocol.
4.6 Fee and Protocol Reflow Mechanism
The PHI token implements a transaction fee mechanism to ensure long-term capital reflow for the system:
Purchase fee: 0%;
Sell fee: 5%, of which:
2% goes to the DAO governance pool;
1.5% is used for market incentives and operations;
1.5% flows back to the protocol ecosystem development fund.
Through the rational distribution of transaction friction income, Olympus Pact achieves simultaneous advancement in ecosystem maintenance, system operations, and community development.
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