Economics of VoidAI

Introduction

VoidAI creates a self-sustaining DeFi ecosystem around Bittensor’s tokens—native TAO and subnet-specific alpha tokens—by combining secure cross-chain bridges, proof-verified liquidity rewards, and a unified treasury.

As new Bittensor subnets launch and additional blockchains join Chainlink’s CCIP network, powerful network effects multiply liquidity, trading volume, and overall value.

A critical component of this ecosystem is token-holder governance, where the community determines which new alpha trading pairs to support by staking wrapped SN106 tokens in dedicated voting contracts.

Trust-Minimized Cross-Chain Bridges

Solana Bridge (v2): Users lock their TAO or Alpha tokens on Bittensor to receive wrapped tokens (wTAO or wALPHA) on Solana for trading and liquidity provision. The reverse process burns wrapped tokens to unlock the original assets on Bittensor.

CCIP Bridge (v3): Leveraging Chainlink’s decentralized oracle network, users can lock wTAO or wALPHA on Solana and mint corresponding tokens on any CCIP-enabled Ethereum-compatible and non-EVM chain. The process is fully atomic—either the lock and the mint both succeed, or neither does. To return native assets, users burn the wrapped tokens on the EVM or non-EVM chain, triggering an unlock on Solana and a final redemption on Bittensor.

All bridge operations incur a small flat fee, plus a percentage charge; 100% of these fees flow directly into VoidAI’s treasury to fuel liquidity and token buybacks.

Verifiable-LP Subnet (SN106)

To ensure that rewards are allocated only to genuine liquidity provision, VoidAI operates a specialized SN106 subnet on Bittensor. Validators on this subnet verify that miners have deposited liquidity pool tokens (representing an ownership share of the liquidity pool) in wTAO/wALPHA or wTAO/USDC and have maintained high uptime. Only those verified deposits receive SN106 emissions.

Emission Distribution:

• 41 percent goes to liquidity providers (the miners who deposit liquidity pool tokens into the smart contract)
• 41 percent goes to validators (the nodes that verify deposits and uptime)
• 18 percent is allocated to the subnet owner

Protocol-Owned Liquidity and Treasury Model

VoidAI channels every source of revenue—bridge fees, trading fees of 0.32 percent on swaps, staking yields, validator commissions, arbitrage profits, and returns from crowdloan participation—into a single treasury. The treasury then deploys those funds in two equal parts:

• Deepening Liquidity Pools: Half of all proceeds are seeded into TAO/USDC pools on Solana, Ethereum, Base, and other platforms, ensuring ultra-low slippage and substantial market depth.
• Building SN106 Reserves: The other half is used to purchase and hold SN106 Alpha tokens, which will be utilized to enhance liquidity for wrapped SN106 on Solana, Ethereum, Base, and other platforms.

These operations form a compounding loop: deeper pools generate more trading fees, which replenish the treasury, allowing further liquidity deepening and reserve accumulation.

Revenue Streams Explained

1. Trading Fees: Each swap of wTAO or wALPHA on Raydium (Solana), Uniswap (Ethereum), and Aerodrome (Base) incurs a 0.32 percent fee.
2. Bridge Fees: Every cross-chain lock, mint, burn, and unlock operation carries a small flat fee plus a percentage charge.
3. Staking Yields: The TAO and Alpha tokens locked via the bridge are automatically delegated to VoidAI’s validators on Bittensor, earning standard staking rewards.
4. Validator Commissions: The Validator take and child key fees
5. Arbitrage Profits: Treasury-funded bots capture price discrepancies across DEXs, adding to overall returns.
6. Subnet Incubation Proceeds: Treasury-funded incubations of promising subnets
7. API Access Fees: Third-party applications pay for access to subnet commodities

Each of these revenue streams flows back into liquidity pools or Alpha reserves, perpetuating growth.

Network Effects

• Subnet Proliferation: Each new Bittensor subnet introduces an Alpha pool, which can be bridged, thereby increasing overall liquidity opportunities.
• Cross-Chain Expansion: Every additional CCIP-enabled chain brings its DeFi community and TVL into play.

Token-Holder Governance & New Subnet Activation

To decide which new alpha trading pairs VoidAI should support, the community uses proposal-specific voting contracts:

1. Proposal Creation: A new proposal contract is deployed for each candidate alpha trading pair.
2. Token Deposit: Token holders deposit wrapped SN106 Alpha (wSN106) into that proposal’s contract.
3. Voting Power: Each deposited token grants one vote; for example, a user with 100 tokens locked has twice the voting weight of someone with 50 tokens in the same proposal.
4. Lock Duration: Tokens remain locked in the contract for the full voting period, preventing withdrawal or reuse elsewhere until voting concludes.
5. Result & Unlock: Once voting ends, tokens are automatically released back to each holder. If the proposal passes, VoidAI moves forward with adding the new pair or subnet.

This mechanism ensures that alpha pair expansions are directly driven by stakeholders who have a vested interest, aligning protocol growth with community demand.

10. Long-Term Sustainability

• Controlled Emissions: Regular halving slows new token issuance.
• Deflationary Offset: Half of all collected fees are used to buy and hold SN106 tokens, offsetting emissions.
• Continuous Innovation: Effortless onboarding of new CCIP chains and treasury-backed incubation of promising subnets ensure the ongoing vitality of the ecosystem.