Whitepaper
§11
SWSS Coin Tokenomics
Pre-launch
Section
11
Tokenomics
Total
20
Whitepaper sections
Updated
16 Oct 2026
Latest revision
Article Content
Economic Architecture

A fixed supply. A defined distribution. A three-layer economic architecture tied directly to settlement activity. SWSS Coin is not valued by speculation. It is compressed by use.

The total fixed supply of SWSS Coin is 5B. No additional coins will ever be minted. The supply is immutable at the protocol level. 18 decimal places ensure precision across all settlement denominations.

Part A — Supply Distribution

Allocation Category SWSS Coin Percentage Notes
Liquidity Provision 750M 15% Foundation managed, for on-chain and exchange liquidity
Product Ecosystem 750M 15% Subject to structured vesting schedules
Foundation Reserve 700M 14% Subject to structured vesting schedules
Staking Rewards 700M 14% Distributed per block over 10 years to active stakers
Developer Fund 600M 12% Milestone-based release tied to deliverables
Growth & Adoption Fund 500M 10% Subject to structured vesting schedules
SWSS Protocol Reserve 250M 5% Subject to structured vesting schedules
Community Allocation 250M 5% Released on presale completion and community milestones
SWSS Security Reserve 250M 5% Multi-signature controlled, and a governance vote is required to access it
Ecosystem Rewards 150M 3% Distributed via ecosystem rewards programmes
Charity Fund 100M 2% Governed by Foundation social impact allocation
Total 5B 100% Fixed forever. No additional minting is possible

Part B — The Settlement Combustion Model (SCM)

swsschain · settlement combustion model Three layers, one loop

swss economics explain --scm

INPUT Real-world settlement Each deed settled on SWSS Chain is an event the model acts on. LAYER 01 · LIVE Transactional Settlement Levy A micro-fraction of every deed settlement is permanently retired from a fixed supply, enforced by the protocol rather than by a contract. LAYER 02 Ecosystem Revenue Recirculation A defined share of product revenue recirculates through open-market acquisition and staking reward augmentation. LAYER 03 · LIVE Stake Gravity Protocol Each new product introduces a staking tier. More incentives lock more coins, and locked coins are not circulating. OUTCOME Circulating supply compresses Compression tracks settlement that has happened.

The return line is the mechanism, not decoration. Compression is driven by settlement that has already occurred, so it tracks real activity rather than announcements — and every product that settles on the chain feeds the same three layers rather than a fourth one of its own.

SWSS Chain introduces the Settlement Combustion Model — a proprietary economic architecture that creates compounding deflationary pressure directly tied to real-world asset settlement activity. The SCM operates across three interdependent layers, each addressing a distinct dimension of supply compression.

L1 Transactional Settlement Levy (TSL) Live Every deed transaction settled on SWSS Chain activates a Transactional Settlement Levy at the consensus layer. A defined micro-fraction of every deed settlement is permanently retired from circulation, cryptographically irreversible and enforced by the protocol rather than by a contract. This is a settlement-triggered supply retirement event mathematically linked to real-world asset activity. It cannot be replicated by copying smart contract logic — it is embedded in the Type 0x03 SCP Transaction type at the consensus layer and requires Byzantine Fault Tolerant Finality Attestation to activate.
L2 Ecosystem Revenue Recirculation Protocol (ERRP) With product revenue A defined percentage of gross revenue from each SWSS ecosystem product is algorithmically recirculated into the SWSS Coin economy through two channels. Track A, Open Market Acquisition: buy-side pressure independent of speculation. Track B, Staking Reward Augmentation: supplements the Staking Rewards pool. As products scale across the ecosystem, the revenue flowing into ERRP compounds.
L3 Stake Gravity Protocol (SGP) Live As each new SWSS ecosystem product launches, it introduces a new staking incentive tier. More products equals more staking incentives. More incentives equals more coins locked. More coins locked equals less circulating supply. SGP operates purely on the economic incentive to lock coins in exchange for ecosystem privileges.

How Stake Gravity Is Implemented

swsschain · stake gravity One contract, three profiles

swss stake describe --positions

ONE CONTRACT · NON-UPGRADEABLE SwssStake Economic parameters change through governed setters. The custody rules never change at all. POSITION 01 Member lock A member position. Never slashable. Released by the lock term and then unbonding. This is the supply compression the protocol is named for. POSITION 02 Validator bond SWSS NodeX collateral. Slashable and duty-locked: released by discharge of the duty rather than by the passage of time. POSITION 03 Custodian bond SWSS RWAX collateral. Slashable and accrues nothing at all, because it is insurance capital rather than a position taken for return.

Conflating these three is the most common misreading of staking on any chain, and the figure exists to make it hard: one contract, three risk profiles, and no ambiguity about which one a given position is. Non-upgradeable is the deliberate part — the contract custodies member funds, so the rules governing that custody cannot be rewritten after the fact.

Stake Gravity is a contract, not a schedule, and the properties that matter to a counterparty are properties of that contract rather than of any figure published alongside it. SwssStake is a single non-upgradeable contract deployed on SwssChain testnet 122606. Non-upgradeable is a deliberate choice rather than an omission: the contract custodies member funds, so the rules governing that custody cannot be rewritten after the fact. Economic parameters change through governed setters; the custody rules never change at all.

The contract serves three distinct purposes under one set of rules, and conflating them is the most common misreading of staking on any chain. A member lock is a member position that accrues and is never slashable. A validator bond is NodeX collateral that is slashable and duty-locked, released by the discharge of the duty rather than by the passage of time. A custodian bond is SWSS RWAX collateral that is slashable and accrues nothing at all, because it is insurance capital rather than an investment. One contract, three risk profiles, no ambiguity about which one a given position is.

Position Type Slashable Release Condition Purpose
Member lock Never Lock term, then unbonding Member supply compression under the Stake Gravity Protocol
Validator bond Yes, capped Duty release, then unbonding Collateral securing consensus participation through SWSS NodeX
Custodian bond Yes, capped Duty release, then unbonding Insurance capital backing custody of DEED-1 deeds held on behalf of clients

What The Contract Guarantees

No economic constant is compiled in. Lock terms, minimum stakes, unbonding periods, accrual rates and slashing ceilings are all governance parameters keyed by lock duration rather than values written into the bytecode. This is what allows the protocol to introduce a further staking term as an ecosystem product launches without redeploying the contract that holds member funds, and it is why this section describes a mechanism rather than a fixed ladder: the ladder is data, and the contract is the part that does not move.

A position’s accrual rate is fixed at the moment it is opened. The rate is written into the position when the stake is made, so a subsequent governance change alters the terms available to new positions and cannot alter one already open. A staker is exposed to the terms they accepted and to nothing decided afterwards.

Rewards are payable only from an explicitly funded reserve. Staked principal can never be paid out as another position’s reward — the two are separate balances, and a claim against an unfunded reserve reverts rather than silently paying out of capital. An empty reserve therefore fails loudly, which is the intended behaviour: the alternative is a protocol that appears solvent by consuming the deposits it is holding.

Withdrawals from that reserve are bounded and timelocked. A withdrawal is announced on chain and executable only after a minimum delay that governance cannot reduce to zero, and a forward period of accrual cover must remain behind after any withdrawal completes. Stakers get a public window in which to see a reserve withdrawal coming, and the pool cannot be drained below what already-open positions are owed.

Slashing carries on-chain due process. A slash is proposed rather than executed: the proposal freezes the position and opens an appeal window, execution is impossible until that window closes, and an upheld appeal cancels the proposal and unfreezes the position. Seizure is capped as a proportion of the position by purpose, and proceeds are directed to the insurance pool rather than to any party in the dispute. A member lock cannot be slashed under any of this, because it secures no duty.

Frequently Asked Questions
9 questions
Q01

What is the total supply and how is it divided?

Five billion SWSS Coin, fixed at the protocol level, divided across eleven allocation categories that sum to exactly one hundred per cent. No additional coins can ever be minted.
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