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Tokenomics

Tokenomics

SoulPeg does not launch with a predefined total supply of sUSDC. The token supply is dynamic and minted on demand in response to protocol actions—either user deposits or controlled reward issuance.

Initial Minting and Liquidity

At genesis, the total supply of sUSDC is zero. To bootstrap liquidity on a decentralized exchange (e.g., PancakeSwap), the protocol owner may pre-mint a fixed amount of sUSDC—such as 5,000 sUSDC—and pair it with an equivalent amount of USDC from treasury funds.

This operation is executed manually via the rewardMint() or _mint() function and unlocked via adminUnlock() to ensure compatibility with liquidity pools.

Example:

  • Mint 5,000 sUSDC to treasury address
  • Transfer 5,000 USDC from protocol reserves
  • Add sUSDC/USDC liquidity on DEX
  • Whitelist the DEX router using setDex()

This LP is used solely to improve accessibility and provide pricing anchors, not to encourage speculation.

Mint Sources

sUSDC can be minted through:

  • depositAndMint() – 1:1 user deposits with enforced lock
  • rewardMint() – governance-controlled reward distribution
  • airdrop() – treasury-to-user direct transfers (unlocked only)
  • manualMint (constructor or internal _mint()) – for protocol operations like LP bootstrapping

No Inflationary Curve

There is no algorithmic inflation, reward multiplier, or rebasing logic. All minting requires an explicit on-chain action and falls under protocol governance control. This ensures a conservative and predictable supply expansion.

Burn Mechanisms

sUSDC can be burned through:

  • earlyRedeem() – owner-driven burn with USDC payout
  • burn(address, amount) – governance-invoked manual reduction
  • Automatic burn via DEX swaps if paired with burning contracts

Burning is rare and used for error correction, liquidity balancing, or system-level recovery.

Summary

SoulPeg's tokenomics are purpose-built for utility, not speculation. All supply is USDC-backed at mint, bound to wallet-level staking intent, and controlled exclusively through transparent protocol functions.