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