Token Minting: Community Vote and Buyback
Below are the basic rules of minting, utility, and buyback for the New Protocol Token (NPT). Detailed spending structure is covered on the Economy page.
In Short
- Issuance only by agreement. A request for token sale is created. The community votes. If the majority is “for,” the deal is executed, tokens are considered minted and credited to the specified wallet.
- 40% upfront — to the Development Fund. From the actual deal amount, 40% goes to the Development Fund, 60% goes to the token fund (for future buybacks).
- Spending — inside the protocol. Tokens cover Novij Protocol operations: relay servers, storage servers, block reads, writes, and storage. Details are on the Economy page.
- Free trading. Tokens can be sold and bought at any price — on the internal Novij Protocol market and on external platforms.
- Buyback with 40% allocation. During buyback, 40% of the sum goes to the Development Fund, 60% is paid to the holder.
- Buyback price — weighted average. The base buyback amount depends on the weighted average price of all past issuances and buybacks (early cheap sales reduce the buyback base).
How Issuance (Minting) Works
- Request. The initiator specifies the volume and price of the deal (e.g., 1,000,000 NPT for $100).
- Community vote. Majority “for” → request approved.
- Execution of the deal. After funds are received, tokens are considered minted and credited to the specified wallet.
- Distribution upfront. From the deal amount, 40% goes to the Development Fund, 60% to the token fund.
Example: request “1,000,000 NPT for $100” is approved and executed → $40 to the Development Fund, $60 to the token fund; 1,000,000 NPT are credited to the buyer.
What Tokens Are Spent On
Tokens are used to pay for protocol operations: relay servers, storage servers, block reading, writing, and storage. Detailed spending structure is on the Economy page.
Free Trading
Holders can freely sell and buy tokens at chosen prices — both on the internal Novij Protocol market and on external platforms.
Buyback
Examples:
- Buyback base: calculated at the weighted average price of all past issuances and buybacks (volume-weighted).
- Allocation: from the calculated amount, 40% goes to the Development Fund, 60% is paid to the holder.
Without early cheap issuances
Example: if the base buyback amount for your request is $60, you receive $36 (60%), $24 goes to the Development Fund.
With early cheap issuances
Example: if earlier some issuances were at a low price (e.g., first “1M for $1,” then “1M for $100”), the weighted average lowers the buyback base, and the actual payout will be less than $36.
Exact formulas for average calculation and price sources are fixed in the Novij Protocol technical documentation and approved by the community.
