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Add RPM Tokenomics documentation
Added detailed tokenomics for the RPM token, including its utility, inflation model, staking economics, governance, fee structure, and community pool.
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‎docs/TOKENOMICS.md‎

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# Rampage L1 Tokenomics
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> **RPM Token Economics and Distribution Model**
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---
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## Token Overview
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| Parameter | Value |
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|-----------|-------|
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| **Token Name** | RPM |
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| **Base Denomination** | urpm (1 RPM = 1,000,000 urpm) |
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| **Chain** | Rampage L1 (Sovereign Cosmos SDK Chain) |
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| **Consensus** | CometBFT (Delegated Proof-of-Stake) |
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| **Initial Supply** | Defined at genesis |
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| **Inflation Model** | Dynamic, bounded |
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---
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## Token Utility
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The RPM token serves multiple critical functions within the Rampage L1 ecosystem:
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### 1. Network Security (Staking)
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- Validators and delegators stake RPM to secure the network
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- Staked RPM earns block rewards and a share of transaction fees
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- Staking creates economic alignment between validators and network health
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### 2. Governance
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- RPM holders participate in on-chain governance through the `x/governor` module
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- Voting power is proportional to staked RPM
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- Governance proposals include parameter changes, treasury allocation, and protocol upgrades
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- Constitutional constraints prevent governance attacks on core protocol parameters
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### 3. Transaction Fees
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- All transactions on Rampage L1 require RPM for gas fees
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- Minimum gas price is enforced by validators
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- Fee revenue is distributed to validators and delegators
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### 4. Truth Attestation
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- RPM is required to submit and stake on truth attestations
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- Economic incentives align attestors with accuracy
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- Slashing penalties for false attestation protect data integrity
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---
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## Inflation Model
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Rampage L1 uses a dynamic inflation model similar to the Cosmos Hub, with bounded parameters:
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| Parameter | Value |
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|-----------|-------|
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| **Inflation Min** | 7% |
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| **Inflation Max** | 20% |
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| **Inflation Rate Change** | 13% per year |
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| **Bonded Target** | 67% |
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| **Block Reward Distribution** | Proportional to stake |
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### How It Works
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- When the bonded ratio (staked tokens / total supply) falls below 67%, inflation increases to incentivize staking
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- When the bonded ratio exceeds 67%, inflation decreases
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- This creates a self-regulating economic mechanism that targets network security
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---
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## Staking Economics
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### Validator Rewards
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Validators earn rewards from two sources:
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1. **Block Rewards:** New RPM minted per block, distributed proportionally to stake weight
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2. **Transaction Fees:** All gas fees collected in each block
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### Commission
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Validators set a commission rate on rewards earned by their delegators:
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| Parameter | Constraint |
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|-----------|------------|
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| Initial Commission | Set by validator (0-100%) |
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| Max Commission | Set at validator creation (immutable ceiling) |
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| Max Commission Change Rate | Maximum daily commission increase |
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### Delegator Returns
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Delegators receive staking rewards minus the validator's commission:
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```
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Delegator Reward = (Delegator Stake / Validator Total Stake) * Block Rewards * (1 - Commission Rate)
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```
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---
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## Slashing
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Slashing protects the network by penalizing malicious or negligent validators:
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| Violation | Penalty | Jail Duration |
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|-----------|---------|---------------|
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| **Double Signing** | 5% of staked RPM | Permanent (tombstoned) |
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| **Downtime** (missing >95% of blocks in window) | 0.01% of staked RPM | 10 minutes |
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### Slashing Impact
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- Slashed tokens are burned (removed from supply)
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- Delegators staked with a slashed validator also lose proportional stake
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- Double signing results in permanent removal from the validator set
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---
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## Unbonding
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| Parameter | Value |
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|-----------|-------|
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| **Unbonding Period** | 21 days |
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| **Redelegation** | Instant (with cooldown) |
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During the unbonding period:
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- Tokens do not earn rewards
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- Tokens are still subject to slashing
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- After 21 days, tokens become liquid and transferable
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---
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## Governance Economics
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### Proposal Deposits
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- Governance proposals require a minimum RPM deposit
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- Deposits are returned if the proposal passes or fails to reach quorum
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- Deposits are burned if the proposal is vetoed (>33% NoWithVeto)
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### Voting Parameters
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| Parameter | Value |
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|-----------|-------|
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| Voting Period | 14 days |
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| Quorum | 33.4% of bonded stake |
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| Threshold | 50% Yes votes |
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| Veto Threshold | 33.4% NoWithVeto |
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### Constitutional Constraints
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The `x/governor` module enforces constitutional constraints on governance:
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- Certain parameters cannot be modified via governance (protocol constants)
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- Emergency proposals have shorter voting periods but higher quorum requirements
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- Validator weight decay for non-participating validators
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---
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## Fee Structure
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### Gas Pricing
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| Parameter | Value |
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|-----------|-------|
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| Minimum Gas Price | 0.001 urpm |
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| Gas Limit Per Block | Configurable |
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| Fee Burn Rate | 0% (all fees to validators) |
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### Fee Distribution
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- Block proposer receives a bonus share of fees
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- Remaining fees are distributed proportionally to all bonded validators
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- Community pool receives a configurable percentage
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---
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## Community Pool
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A percentage of all block rewards and fees is directed to the community pool:
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- Controlled by governance proposals
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- Used for ecosystem development, grants, and infrastructure
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- Cannot be spent without an approved governance proposal
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---
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## Token Distribution (Genesis)
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The genesis token allocation will be published prior to mainnet launch. The distribution is designed to:
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- Ensure sufficient decentralization of the validator set
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- Fund core development and ecosystem growth
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- Incentivize early validators and testnet participants
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- Establish a community pool for ongoing development
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Detailed allocation percentages will be included in the genesis ceremony documentation.
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---
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## Economic Security Model
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Rampage L1's economic security is derived from:
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1. **Stake-weighted consensus:** The cost of attacking the network is proportional to the value of staked RPM
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2. **Slashing penalties:** Malicious behavior results in permanent economic loss
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3. **Unbonding period:** Prevents rapid destabilization of the validator set
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4. **Constitutional governance:** Prevents economic parameter manipulation through governance attacks
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5. **Dynamic inflation:** Self-regulating mechanism to maintain target security ratio
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---
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> **Disclaimer:** Tokenomics parameters are subject to change through governance. Values listed reflect the initial configuration and may be modified via approved governance proposals, subject to constitutional constraints.
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---
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*Copyright 2025 Shea Patrick Kastl. Rampage L1 tokenomics are proprietary design elements protected under the NOTICE file. See [NOTICE](../NOTICE) for details.*

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