Tokenomics

Introducing $GAIB

The $GAIB token is the central coordination mechanism of the GAIB network and will power a range of utilities including:

1. Governance
2. Revenue sharing for $GAIB stakers
3. Bootstrapping emissions
4. Incentives (airdrop, TVL program, referrals, ongoing rewards and partnerships)

$GAIB utilities

Governance:

Staked $GAIB (sGAIB)

$GAIB stakers will be able to participate in protocol governance, voting on key initiatives and parameters which will shape the future direction of the GAIB network. Tokenholders’ role in governance will evolve as the GAIB protocol matures and progresses from Phase I to Phase II of the progressive decentralization roadmap (see below).

In order to vote, $GAIB tokenholders will need to stake their $GAIB tokens to receive ‘sGAIB’. By staking $GAIB via the GAIB staking portal, non-transferable sGAIB will be minted to the stakers wallet on a 1:1 basis to the amount of $GAIB staked.

sGAIB can be redeemed at any time for the equivalent amount of $GAIB subject to a 21-day cooldown period.

As explained below, sGAIB will also form the key unit of account in the calculation of revenue sharing.

Progressive decentralization roadmap

Phase I: The Atreides Council

Initially, the network’s governance will be handled by a security council, known as The Atreides Council, consisting of GAIB protocol core contributors and partners.

During Phase I, GAIB community members can discuss proposed changes in a dedicated forum which will be monitored by The Atreides Council. After community discussion concludes, proposals will undergo a snapshot vote to poll the community for feedback / consensus. sGAIB tokenholders will be approved to participate in snapshot voting and will receive voting power pro-rata to their share of the total sGAIB supply.

While these votes are advisory and may influence the decisions of The Atreides Council, the council retains final authority over all decision making during this initial governance phase.

Phase II: Fremen Rule

Phase II of the progressive decentralization roadmap sees governance transition to a fully onchain tokenholder-led model, powered by sGAIB and known as Fremen Rule.

Prior to Phase II, all core contracts are controlled by The Atreides Council.

Over time, as the GAIB protocol matures, control will progressively be handed off to Fremen Rule, enabling full community control via onchain proposals. This ensures a safe transition to decentralized governance.

The mechanics of transition from Phase I to Phase II governance will be detailed in due course and may involve an intermediate phase where control over certain contracts is provided to Fremen Rule before direction for all core contracts is decentralized.

Revenue sharing for $GAIB stakers (sGAIB tokenholders)

GAIB protocol fees

GAIB employs a simple, transparent fee structure designed to align incentives across borrowers, protocol participants, and $GAIB stakers. The framework consists of three core fees:

• Tokenization Fee - 1.00% p.a. subject to a minimum of 0.25% (Upfront)
  A one-time fee paid by borrowers at the time of deal origination based on loan tenor and calculated on the notional size of the financing.

  • Retained by the GAIB Treasury.
  • Reflects the role played by the GAIB team in originating and structuring financing opportunities.
  • Tokenization Fee supports ongoing incentivization of origination activity and sustainable ecosystem growth.

  To clarify how this operates, the Tokenization Fee is determined using the following formula: max(0.25%, 1.00% x Loan Term in Years). E.g.:

  • 1 to 3 month loans are charged an upfront Tokenization Fee equal to 0.25% of notional
  • 6 month loans are charged an upfront Tokenization Fee equal to 0.50% of notional
  • 12 month loans are charged an upfront Tokenization Fee equal to 1.00% of notional
  • 18 month loans are charged an upfront Tokenization Fee equal to 1.50% of notional
  • And so on

• Protocol Fee - 0.25% p.a. (Ongoing)
  An annualized fee, charged as a portion of gross interest collected by the sAID Fund.

  • Deducted on each payment date.
  • Distributed to $GAIB stakers who secure and operate the orchestration network.
  • Protocol Fee represents compensation for the smart contract and network infrastructure that underpins the protocol.

• Performance Fee - 15% of GPU Financing Earnings (Ongoing)
  A fee applied to the earnings generated from active GPU financing activities.

  • Initially routed to the GAIB Treasury and Protocol Reserve
  • Over time, GAIB may share these revenues with $GAIB stakers (real yield and / or buyback-and-distribute). This decision will be based on factors such as network performance, participation levels, and governance outcomes.
  • Performance Fees exist to reward prudent underwriting, maintenance of protocol stability, and active financing efforts by GAIB and its stakeholders.

Note, all fees will be charged / received in non-AID currencies.

Flexible distribution policy: Real-yield and buyback-and-distribute

Revenue may be shared with $GAIB stakers (sGAIB holders) in two ways:

1. Real Yield - paid directly in $AID or other currencies.
2. Buyback-and-Distribute - fees received are used to purchase $GAIB tokens on the open market, which are then distributed to sGAIB holders.

The choice of reward currency and distribution method is determined by the Atreides Council or Fremen Rule (depending on the current governance phase).

Excess GAIB Treasury utilized for buyback-and-burn of $GAIB tokens

From time-to-time, The Atreides Council or Fremen Rule (depending on the phase of the decentralization roadmap) may vote to utilize GAIB Treasury balances deemed excess to requirements to fund buyback-and-burn of $GAIB tokens.

GAIB Treasury and Protocol Reserve growth

Revenues directed to the GAIB treasury will be used to fund investment in growth initiatives and ongoing operations expected to benefit the network as a whole and increase the value accrual potential of $GAIB in the future.

Revenue directed to the Protocol Reserve will bolster the security / health of the GAIB network, reducing risk and increasing the attractiveness of the protocol and the $GAIB token.

During the earliest stages of the GAIB project lifecycle, we would expect a higher proportion of protocol revenues to be retained for the Protocol Reserve and / or reinvested for growth.

However, it is the GAIB team’s objective that the majority of protocol revenues are distributed to tokenholders over the medium- to long-term.

Topic for discussion - revenue sharing: In our view, and current market setting, revenue sharing for a token-led project is essential. However, debate to be had as to the timing and rigidity of revenue sharing arrangements. It may be the case that a discretionary approach is preferred to an algorithmic alternative in early phases. However, building trust with tokenholders will be critical as market’s natural position after much PTSD is to assume all teams are scammers unless code enforces otherwise. What we have proposed in this section 2 sets a minimum threshold where GAIB receives Tokenization Fees, whilst sGAIB holders receive the Protocol Fees - while the sharing of the Performance Fee is left up to GAIB’s discretion (at least initially).

Bootstrapping emissions

[10.0]% of total $GAIB supply will be used across the first three years post-TGE to supplement yields earnt by sGAIB holders.

This mechanism will allow for:

• Organic revenue growth across early years of the protocol life cycle (building to a level where yields from revenue sharing alone can provide sustainable long-term returns on sGAIB holdings)
• Bootstrapping of the GAIB Treasury and Protocol Reserve via higher revenue retention rates (with revenue sharing profile allocating a higher proportion of fees to sGAIB holders over time)

By using $GAIB bootstrapping emissions in early periods, in addition to yields paid via GAIB’s revenue sharing framework, nominal returns to sGAIB holders will be enhanced and, importantly, early network participants will be rewarded with greater ownership of the GAIB network, which can be used to increase sGAIB holdings to earn a greater share of GAIB network revenues in future periods.

Note: Bootstrapping emissions will not increase max $GAIB supply, which will remain fixed at 1 billion $GAIB.

Incentives (airdrop, TVL program, ongoing incentives and partnerships)

The $GAIB token serves as a core instrument for driving growth, engagement, and alignment across the protocol ecosystem. A portion of the token supply is allocated to support incentive programs that reward early adopters, liquidity providers, community contributors, and strategic partners. These programs are designed to bootstrap activity, foster long-term participation, and reinforce the protocol’s network effects.

Incentive mechanisms will include:

• Airdrop: Distribution of $GAIB tokens to early users, aligned communities, or specific target groups to recognize their contribution or encourage adoption.
• TVL Program: Rewards for users who deposit assets into the GAIB protocol or products. TVL programs will be conducted across multiple campaigns.
• Ongoing User Incentives: Periodic token distributions to support key user behaviors.
• Partnerships: Strategic token arrangements designed to incentivise and align with partner protocols that help extend the reach or functionality of the GAIB network.
• Co-marketing / incentives: $GAIB tokens may be used as part of co-incentivisation campaigns for partner protocol users / depositors (designed to grow GAIB TVL and user base).

Each of these programs is governed by the protocol’s incentive framework and may be subject to change over time based on performance, market conditions and governance input (Atreides Council or Fremen Rule depending on the phase of governance roadmap). The goal is to deploy $GAIB incentives in a capital-efficient, targeted manner that supports both growth and long-term sustainability.

$GAIB Tokenomics

[NOTE TO GAIB: Can you please set up a new google drive folder where you upload all of your existing token commitments (i.e. investor token warrants, details of / documentation behind TVL deals, advisory agreements etc) so we can calculate the actual tokenomics allocations?]