§ I — MECHANISM
Two flywheels, no operator.
Every prediction trade pays a 5% fee. Every $ARENA trade on pump.fun accrues creator fees. Both feed back into the system. Loop A turns $ARENA volume into market liquidity. Loop B turns prediction volume into $ARENA burn. No multisig, no human custody, no external capital. The crons are the mechanism.
LIVE STATE
TREASURY · BUY/BURN POOL
— ↗LIFETIME SKIMMED
0.000 SOL
from prediction trades
$ARENA BURNED
—
supply removed
$ARENA → LP
—
PumpSwap depth
PROGRESS TO NEXT BUY/BURN0.0000 / 0.5 SOL · 0.0%
SEED WALLET · LIQUIDITY POOL
— ↗TOTAL CLAIMED
0.000 SOL
from $ARENA creator fees
TOTAL DISTRIBUTED
0.000 SOL
to market escrows
TOTAL RECYCLED
0.000 SOL
from resolved markets
§ II — LOOP A
$ARENA volume → market liquidity
$ARENA trades on pump.fun accrue creator fees on the bonding curve and on PumpSwap. The claim cranker sweeps both vaults into the seed wallet. The seed cranker distributes that SOL across markets, recomputing each market’s LMSR b parameter. Markets graduate from pending_seed to live as they get funded.
01
TRADE $ARENA on pump.fun
Anyone trades $ARENA — bonding curve pre-graduation, PumpSwap pool after. Each trade pays the standard pump.fun fee.
02
CREATOR FEES ACCRUE
Trade fees collect in two on-chain vaults: the pump.fun creator vault (pre-grad) and the PumpSwap coin-creator vault ATA (post-grad). Fully transparent on-chain.
03
CLAIM CRANKER · every 30 min
Permissionless cron sweeps both vaults via distribute_creator_fees. Refuses to claim unless adminRevoked — admin can’t re-route fees mid-claim.
04
SEED WALLET FILLS
Claimed SOL lands in the seed wallet. Verifiable balance, public address, no human custody — only the cranker key signs.
05
SEED CRANKER · every 5 min
Distributes seed-wallet SOL into per-market escrows. Bootstrap pass funds pending_seed markets to the 0.5 SOL minimum; growth pass deepens live markets toward tier targets. Recomputes b = seed / ln(2).
06
MARKETS GRADUATE + DEEPEN
Markets flip pending_seed → live once seed ≥ 0.5 SOL. More volume → more creator fees → more seed → flatter curves and bigger trades. Compounds.
§ III — LOOP B
Prediction trades → $ARENA burn
Every prediction trade pays a 5% fee. Most of it is protocol skim that gets swept to the treasury. When the treasury crosses 0.5 SOL, the buy/burn cranker swaps SOL → $ARENA on Jupiter Ultra; half is burned, half goes to LP. Supply down, depth up.
01
USER TRADES A MARKET
Buy or sell YES / NO shares on a live market. LMSR pricing, instant fills, share = $1 at resolution if right.
02
5% FEE SPLIT
Auto-generated markets: 4.0% protocol + 1.0% LP to seeders. User-created markets: 3.5% protocol + 0.5% creator + 1.0% LP. Always 5% total — never more.
03
SEEDERS EARN LP FEE
The 1% LP cut credits seeders pro-rata by their share of the market’s seed at trade time. Time-weighted, lump-sum payout at resolution.
04
SWEEP CRANKER · every 15 min
Pulls accrued protocol skim from each market escrow into the treasury wallet. Per-tx, idempotent, on-chain visible.
05
BUY/BURN CRANKER · every 30 min
When treasury > 0.5 SOL, single composite tx: swap SOL → $ARENA via Jupiter Ultra, with 1% slippage tolerance. Best route across pump.fun bonding curve and PumpSwap.
06
50% BURN · 50% LP
Half of acquired $ARENA is sent to the burn address — supply permanently shrinks. Half is paired to PumpSwap LP — depth grows. Holders win twice.
§ IV — SEEDERS
You can be the house.
Anyone can deposit SOL as liquidity to any market in pending_seed or live state. Seeders earn 1% of all trade volume on that market, distributed pro-rata by share of seed at the time of each trade. Principal is locked until the market resolves; payout is lump-sum (principal share + accumulated LP fees).
Risk: in lopsided markets the LMSR house pays out more than escrow holds, so seeder principal can be partially consumed. LP fee yield offsets this over the market’s lifetime.
SEEDER MECHANICS
Earn1% of all trade volume
DistributionPro-rata, time-weighted
Min seedAny amount > 0
Cap200 seeders / market
LockUntil resolution
Lock cutoffFinal 10% of lifetime
PayoutPrincipal + LP fees lump sum
LP fees earned0.0000 SOL
§ V — SOLVENCY INVARIANT
Winners always paid in full.
For every live market, b = total_seed / ln(2). Worst-case LMSR house liability is b × ln(2) = total_seed. By construction, escrow always covers any payout. The system is solvent by math, not by promise.
| seed (SOL) | implied b | curve feel |
|---|
| 0.5 | 0.72 | jagged |
| 1.0 | 1.44 | rough |
| 3.47 | 5.0 | smooth |
| 7.0 | 10.0 | very smooth |
| 14.0 | 20.0 | institutional |
§ VI — STATUS
$ARENA TOKEN
not yet launched
crons dormant until ARENA_MINT set
LOOP A · CLAIM + SEED
dormant
awaiting $ARENA launch
LOOP B · SWEEP + BUY/BURN
dormant
no skim accrued yet
MARKETS
—
real escrow payouts validated
BUY/BURN LOG
no cranks executed yet — feeding the treasury
SEED DISTRIBUTION LOG
no distributions yet — seed wallet fills first
SWEEP LOG
no sweeps yet — first prediction trades will trigger it