# Tokenomics
***PromptHub*** introduces a native token, **$PHUB**, to coordinate economic incentives, access control, governance rights, and usage-based royalties across the ecosystem. Tokenomics in ***PromptHub*** is designed to promote fair attribution, long-term alignment with creators, and sustainable funding for protocol maintenance and innovation. ``` ┌───────────────────────────────────────────────────────────────────────────────┐ │ $PHUB TOKEN FLOW & ECONOMIC CYCLE │ │ │ │ │ │ ┌───────────────┐ ┌────────────────┐ │ │ │ │ Usage Fees │ │ │ │ │ Prompt │────────────────────────────▶│ Prompt │ │ │ │ Users │ │ Creators │ │ │ │ │◀────────────────────────────│ │ │ │ │ │ Prompt Services │ │ │ │ └───────────────┘ └────────────────┘ │ │ │ ▲ │ │ │ │ │ │ │ │ 60% │ │ │ │ Creator │ │ ▼ │ Revenue Share │ │ ┌───────────────┐ ┌────────────────┐ │ │ │ │ Transaction Fees │ │ │ │ │ Trading │────────────────────────────▶│ Protocol │ │ │ │ Platform │ │ Treasury │ │ │ │ │◀────────────────────────────│ │ │ │ │ │ Incentives & Development │ │ │ │ └───────────────┘ └────────────────┘ │ │ │ │ │ │ │ │ ┌───────────────┐ │ │ │ │ │ │ │ │ │ Governance │◀────────────────────────────────────┘ │ │ │ Participants│ 15% Community Rewards │ │ │ │ │ │ │ │ │ │ └───────────────┘ │ │ │ │ │ │ 10% Deflationary Burn │ │ ───────────────▶ │ │ │ └───────────────────────────────────────────────────────────────────────────────┘ ``` ### 🔍 Token Overview | Attribute | Value | | ------------ | ---------------------- | | Token Name | PromptHub Token | | Symbol | $PHUB | | Chain | Solana SPL | | Supply Cap | 1,000,000,000 $PHUB | | Decimals | 9 | | Initial Mint | 100% pre-defined split | ### 💼 Token Utility $PHUB serves the following key functions: * **Prompt Invocation Fees**: Required to execute premium prompts gated via PromptVault. * **Royalty Distribution**: Disbursed to original prompt authors and module creators based on usage. * **DAG Execution Gas**: Used to power multi-step workflows involving PromptDAG graphs. * **Staking for Ranking**: Prompt authors or validators may stake $PHUB to boost discoverability. * **Governance Participation**: Voting rights in PromptDAO for protocol upgrades, treasury spending, and parameter tuning. * **Bounties and Rewards**: Used to fund developer grants, audits, and ecosystem integrations. ### 💎 Commercial Value of Prompt Assets Prompts in PromptHub are not just functional tools but true digital assets with commercial value: * **Monetization through Usage**: Prompt creators earn revenue each time their prompt is called or included in DAG workflows * **Asset Appreciation**: High-quality prompts gain reputation and value over time through proven performance and user ratings * **Licensing Tiers**: Authors can set multiple access tiers - from free public use to premium enterprise licensing * **Derivative Works**: Revenue sharing for forked or derived prompts ensures original creators continue earning from their intellectual property The PromptHub economic model creates a vibrant marketplace where prompt engineering becomes a profitable profession and high-value intellectual property. ### 📊 Token Allocation | Category | Percentage | Lock/Vesting Details | | ------------------------- | ---------- | --------------------------------------------- | | Public Circulating Supply | 90% | PumpFun-style fully released at launch | | Core Team | 5% | 12-month lock, linear 6-month vest thereafter | | Creator Incentives | 3% | Distributed via achievement-based milestones | | Validator Rewards | 2% | Released through work-based qualification | #### 🌟 Creator Incentives Program The 3% allocation for creators is distributed through a transparent, achievement-based system: 1. **Qualification Tiers**: * **Bronze Tier**: Creating at least 5 quality prompts with community rating >7/10 * **Silver Tier**: 15+ quality prompts with >8/10 rating and at least 100 unique users * **Gold Tier**: 30+ prompts with >9/10 rating, 1,000+ users, and recognized innovations 2. **Reward Distribution**: * 40% allocated to initial ecosystem seeding (first 3 months) * 30% for mid-term growth (months 4-12) * 30% reserved for long-term sustainability (year 2+) 3. **Achievement Milestones**: * **Prompt Quality**: Based on community ratings, validation scores, and originality * **Usage Metrics**: Number of unique users, total executions, and retention rates * **Prompt Composability**: How effectively the prompt is used in DAGs and referenced by others * **Specialized Domain Contributions**: Extra rewards for underserved but critical domains 4. **Distribution Mechanism**: * Monthly reward cycles with transparent on-chain distribution * Quadratic funding approach to balance between popular creators and niche specialists * All distributions approved by a multi-sig of community representatives and core team * Achievement data publicly verifiable through PromptSig execution logs #### 🛡️ Validator Rewards Structure The 2% validator allocation incentivizes critical security and quality assurance work: 1. **Validator Roles**: * **Prompt Verifiers**: Test and validate functionality claims of submitted prompts * **Security Auditors**: Review prompt code for vulnerabilities or malicious behavior * **Quality Raters**: Provide structured evaluation of prompt effectiveness and output quality * **Dispute Resolvers**: Address conflicts regarding prompt ownership, similarity, or licensing 2. **Qualification Process**: * Validators must stake a minimum of 5,000 $PHUB tokens * Must complete a certification process demonstrating domain expertise * Performance tracked via accuracy score based on community consensus * Slashing conditions apply for dishonest validation or collusion 3. **Reward Disbursement**: * Base rewards for each prompt verification (adjusted by complexity) * Bonus multipliers for specialized domains requiring rare expertise * Reputation-weighted rewards increasing with validation history accuracy * 50% of rewards require 6-month vesting to ensure long-term alignment 4. **Progression System**: * Validators advance through tiers based on work quality and quantity * Higher tiers unlock greater reward multipliers and governance weight * Specialized validator badges showcase domain expertise (legal, medical, technical) * Top-tier validators invited to join the Validator Council with enhanced protocol influence ### 💰 Revenue Model PromptHub does not charge gas to register free prompts. However, monetized prompts invoke a small fee paid in $PHUB, distributed as: * **60% to Prompt Creator** * **15% to DAO Treasury** * **15% to Validator/Curation Pools** * **10% Burn (deflationary component)** Additional fees can apply for: * DAG execution (multi-prompt orchestration) * Large prompt payloads * Private vault queries