🛠️Getting set up

4.1 Token Types

4.1.1 Outcome Tokens

• Purpose: Represent possible outcomes of prediction markets.

• Lifecycle:

  1. Minted when a market is created.

  2. Traded during the market's active period.

  3. Settled when the market concludes.

• Value: Derived from the perceived probability of the outcome and the total liquidity in the market.

• Supply: Dynamic, based on market demand and liquidity provision.

4.1.2 Memecoins

• Origin: Created from winning outcome tokens after market settlement.

• Purpose: Long-term value retention, community engagement, and governance.

• Features:

  1. Tradeable on DeHype and potentially on external exchanges.

  2. Used for governance voting on platform decisions.

  3. Potential for additional utility as decided by token holders.

• Supply: Fixed at the time of conversion from outcome tokens.

4.2 Liquidity Management

1. Initial Liquidity Provision:

   • Market creators must provide a minimum initial liquidity in SOL.

   • Additional liquidity can be added by any user.

2. Automated Market Maker (AMM):

   • Utilizes a constant product formula (x * y = k) for efficient price discovery.

   • Ensures continuous liquidity for both outcome tokens.

3. Liquidity Provider (LP) Rewards:

   • LPs earn a share of trading fees proportional to their contribution.

   • Additional incentives may be provided through yield farming programs.

4. Liquidity Transfer Mechanism:

   • Upon market settlement, liquidity from losing tokens is automatically transferred to winning tokens.

   • This process amplifies the value of winning tokens and creates a strong foundation for the resulting memecoin.

4.3 Token Distribution

Platform Token (HYPE)

While outcome tokens and memecoins are the primary focus, DeHype also introduces a platform token (HYPE) for overall ecosystem governance and incentives.

Total Supply: 1,000,000,000 HYPE

Distribution:

• 30% (300,000,000 HYPE): Community Rewards and Liquidity Mining

• 25% (250,000,000 HYPE): Team and Advisors (vested over 3 years)

• 20% (200,000,000 HYPE): Treasury for Future Development

• 15% (150,000,000 HYPE): Initial DEX Offering (IDO)

• 10% (100,000,000 HYPE): Strategic Partnerships and Marketing

Vesting Schedule:

• Team and Advisor tokens: 1-year cliff, then linear vesting over 2 years

• Community Rewards: Released over 4 years to incentivize long-term participation

• Treasury: Locked for 6 months, then released quarterly based on community voting

Memecoin Distribution

For each memecoin created from a settled market:

• 70%: Distributed to holders of winning outcome tokens

• 15%: Added to memecoin liquidity pool

• 10%: Platform reserve for development and marketing

• 5%: Community rewards pool

This tokenomics model is designed to create a self-sustaining ecosystem that rewards accurate predictions, incentivizes liquidity provision, and fosters long-term community engagement through the creation and governance of memecoins.