Tokenomics

Designed for Growth and Stability

Overview

The tokenomics of $CHECK are designed to balance sustainability, fairness, and long-term growth. With a fixed supply and deflationary mechanics, the model aligns incentives across users, contributors, and stakeholders while ensuring transparency at every step. All allocations and schedules are verifiable on-chain, reinforcing trust and accountability within the ecosystem.

Supply and Distribution

$CHECK has a fixed supply of one hundred billion tokens minted at genesis on Polygon. No additional minting is possible, making $CHECK a capped and deflationary asset. Distribution is structured to provide immediate accessibility while supporting long-term development and ecosystem health.

Allocation Breakdown:

• Circulating – 25%: Distributed to the public through strategic sales, community airdrops, and rewards for early users.

• Team – 20%: Reserved for the founding team and developers, these tokens are subject to strict vesting schedules to align their incentives with the platform's long-term success.

• DAO Treasury – 15%: Managed by the community through the DAO, these funds are allocated for development grants, partnerships, bounties, and other community-driven initiatives.

• Liquidity – 12.5%: Dedicated to providing liquidity on both decentralized exchanges (e.g., Uniswap) and centralized exchanges (e.g., Binance).

• Marketing – 10%: Allocated for marketing efforts, user acquisition, and partnerships.

• Reserves – 10%: Held as a strategic buffer for unforeseen needs, additional liquidity, or future ecosystem funding.

• Associates – 5%: Allocated to contributors in the Paycheck Labs ASC Program who bring specialized skills such as recruitment, social media influence, visual design, and other expertise.

• Advisors – 2.5%: Reserved for advisors who contribute specialized expertise, such as legal consultants, strategic planners, or industry experts.

Structured Vesting and Strategy

At launch, 25% of supply enters circulation, while the remainder unlocks gradually through structured vesting. This disciplined release model prevents sudden inflation and ensures that contributors, associates, and advisors earn their allocations over time. It protects the token’s value while aligning rewards with sustained contributions.

Beyond vesting, major allocations such as the DAO Treasury, Reserves, and Marketing fund are positioned as strategic tools for the ecosystem. The DAO Treasury acts as a community-controlled war chest, funding grants, partnerships, and bounties that drive long-term growth. Reserves provide a safeguard against unforeseen challenges while equipping governance with the flexibility to seize new opportunities. Marketing funds not only support adoption but also return value to the community through targeted campaigns and incentive programs.

Together, these practices combine predictability with adaptability. By locking tokens where necessary and deploying them only with purpose, the platform ensures that allocation decisions reinforce stability, advance strategic initiatives, and maintain confidence in the token's long-term value.

Deflationary Mechanisms

The protocol’s smart contracts embed multiple mechanisms to enforce a deflationary policy:

• Staking Check Burns: When users mint a Staking Check using $CHECK, the 0.05% minting fee is burned in full. Unlike other check types where fees are distributed to treasuries and stakers, this mechanism ensures staking directly reduces supply.

• Fee Collection and Burning: Fees collected in other tokens can be routed to a fee collector contract, which periodically executes a buy-and-burn of $CHECK on the open market.

• Burn Reserve: A portion of $CHECK tokens in the community allocation may be set aside as a burn reserve, to be destroyed on a schedule or upon reaching usage milestones.

• DAO-Controlled Adjustments: The DAO can vote to adjust the burn rate or allocate DAO Treasury funds for additional buybacks when needed.

Together, these measures ensure that as Total Value Locked (TVL) and transaction volume grow, $CHECK supply is steadily reduced, reinforcing scarcity while aligning with long-term holder value.

Cross-Chain Integrity

While $CHECK originates on Polygon, cross-chain functionality is enabled through official bridge contracts and omnichain token standards such as LayerZero’s OFT. This ensures the total supply remains fixed and auditable across chains while extending usability to networks like Ethereum, Arbitrum, Base, and BNB Chain. By maintaining consistent supply records and trusted bridging mechanisms, the token preserves its integrity across every deployment. This approach allows users to interact with $CHECK wherever they are while keeping the ecosystem unified under one verifiable standard.

Transparency and Audits

All allocations, locks, and vesting schedules are public and verifiable on-chain. Governance approval is required for any changes to allocation or treasury usage. The $CHECK contract was audited by Hacken with zero vulnerabilities found, and additional audits are planned as the ecosystem expands. These practices ensure that both code and capital remain accountable to the community. By pairing open records with independent reviews, the platform reinforces its commitment to security, trust, and long-term reliability.