THE FLYWHEEL
Every bid does three things at once: 75% of it buys the coin it backs and burns it, 20% buys $OUTBID and burns it and 5% to the treasury. Launch and trading fees feed the buyback too — most of them — and the vault buys $OUTBID on PONS and burns every token it buys. The busier the platform, the more there is to buy with.
The buyback is not live yet.
This is how the loop runs once the revenue router and the buyback vault are deployed. The figures fill in from the first buyback.
$OUTBID burned
—
No buyback yet
Launch and trade
A coin launches for 0.0005 ETH on a bonding curve, priced in an asset its creator picks from those the factory lists, and trades. Every buy and sell pays a 1% fee in that asset: 70% of it to the coin’s creator, 30% to the protocol. Nothing is charged at graduation, and the swap fees its locked liquidity earns in the pool are split the same way.
Bid for the top
Communities bid to put their coin at the top of the Outbid board, in USDG — or in ETH or another listed token, which the market swaps to USDG in the same transaction. Only coins priced in USDG can be bid on. A coin’s position is the USDG ever bid on it, and nothing is refunded when someone outbids you.
Split on chain
The outbid market splits every bid the moment it lands: 75% to buy the coin, 20% to buy and burn $OUTBID in the same transaction (to the buyback vault until $OUTBID is live), 5% to the treasury. Launch and trading fees go to the revenue router, once it is deployed. Every share stays in the asset it arrived in.
Buy back
A bid’s 75% buys the coin it backs in the same transaction, on its curve or in its pool, which moves its price up. The vault spends its share on $OUTBID, which trades on PONS paired with another asset, such as USDG — on its bonding curve, then in its Uniswap V4 pool — swapping other assets into the pair through pools the owner names. An allowlisted keeper runs each buy and sets the least $OUTBID it must return; the vault checks what actually arrived, with a cooldown between buys and any cap the owner sets per asset.
Burn it
Every coin a bid buys is sent to the dead address in the same transaction. Every $OUTBID the vault buys is burned in the same transaction — or, if the token will not burn, sent to the dead address. Neither returns to circulation. Then the next bid starts it again.
Every bid
The board →Bid = attention + burn + buyback.
A community bids to put its coin at the top of the Outbid board, in USDG — or in ETH or another listed token, swapped to USDG in the same transaction — and only coins priced in USDG can be bid on. Nothing is refunded. For example, $DOG’s community bids 1,000 USDG to outrank $PEPE:
So far: —
Outbid market
Splits every bid.
The market could not be read; these are the shares it is deployed with.
The coin you bid on
75%
Buys it on its curve, or in its pool once it has graduated, and sends every coin bought to the dead address. The buy moves its price up; the bidder sets the fewest coins it must return.
e.g. 750 of a 1,000 USDG bid
$OUTBID buyback
20%
Buys $OUTBID on PONS and burns it in the bid itself once $OUTBID is live; until then it collects in the buyback vault, in USDG.
e.g. 200 of a 1,000 USDG bid
Treasury
5%
To the treasury, in USDG, for running the platform.
e.g. 50 of a 1,000 USDG bid
All three happen in the bid’s own transaction. The burn share buys like anyone would, paying the coin’s trading fee; a bid that fills a coin’s curve graduates it and buys the rest in the new pool. Coins have no burn of their own, so the dead address is where they go: out of circulation for good. The example is round numbers, not a real bid.
- Waiting in the vault
- —
- Bought back with
- —
- $OUTBID burned
- —
- Buybacks
- —
What waits in the vault is read from it directly, for every asset the protocol has been paid in; what it bought back with and burned is every buyback it has run. Each asset is kept apart, because an ether and a dollar do not add.
Recent $OUTBID burns
Burns appear here once the buyback is live.
Launch and trading fees
Day by day →- 01ETH
Launch fees
0.0005 ETH
for every coin launched
Earned so far
—
Pays the treasury directly for now
- 02The coin’s asset
Curve fees
30%
of the 1% fee on every buy and sell on a bonding curve, and of any snipe tax in a coin’s first 3 seconds
Earned so far
—
Pays the treasury directly for now
- 03The coin and its asset
Pool fees
30%
of the swap fees a graduated coin’s locked liquidity earns
Earned so far
—
Pays the treasury directly for now
Revenue router
Not deployed yet.
Until it is, every fee goes to the treasury.
Buyback vault
—
Buys $OUTBID on PONS and burns it.
Operations
—
For running the platform, paid to the operations address the router is set to.
Rates are the terms the factory is deployed with; a coin keeps the terms it launched with. Rounding dust left at graduation takes the same route and is counted with pool fees; anything sent into a curve while none of its coins are out, with curve fees. Every asset is split and counted on its own, because an ether and a dollar do not add.
Burning takes $OUTBID, and the coins bids buy, out of circulation. It does not guarantee a particular price or return.