Tokenomics

STREET presents a new tokenomic model to the crypto space: dedicated meme rewards. The notion of minting a token to boost a base token, such as WELSH, only makes sense when the base token is a fixed-supply, full-distributed community token.

The big idea is - as STREET tokens are minted and rewarded to liquidity providers, the selling of these rewards puts constant buying pressure on the base token. As the base token has no more issuance, the creation of the rewards token is designed to create an economic model.

However, there are two major decisions that needs to be made regarding the tokenomics of the rewards token: Fixed Supply or Infinite Supply. This documentation highlights the pros and cons of both, including the initial token distribution.

The Great Debate: Infinite Supply vs Fixed Supply

Welsh is already a fixed-supply community coin. Street isn’t designed to be a community coin. Street is a meme rewards token designed to boost welsh. If the supply remains infinite, that means Street Rewards mint to Welsh Credit holders forever.

Infinite Supply - Default DOGE Model

Pros:

• ✅ Perpetual LP rewards - Liquidity providers earn forever
• ✅ Sustainable yield - Never-ending incentive to provide liquidity
• ✅ Proven model - DOGE reached $80B+ market cap with infinite supply
• ✅ Anti-hoarding - Encourages usage over speculation
• ✅ Economic growth - Accommodates expanding user base

Cons:

• ❌ Inflation pressure - Constant new token creation
• ❌ Dilution effects - Existing holders get smaller percentage over time
• ❌ Store of value concerns - Harder to maintain purchasing power

Fixed Supply - Capped supply at 10,000,000,000 tokens

Pros:

• ✅ Scarcity premium - Limited supply can drive value appreciation
• ✅ Store of value - No inflation reduces purchasing power erosion
• ✅ Speculation appeal - Fixed cap attracts different investor class
• ✅ Parity with WELSH - 10B STREET matches 10B WelshCorgiCoin supply

Cons:

• ❌ Finite LP rewards - Eventually no new tokens to distribute
• ❌ Yield sustainability - Long-term LP incentive challenges
• ❌ Growth limitations - Fixed supply may constrain ecosystem expansion
• ❌ Early adopter bias - Benefits early participants disproportionately

At the time of launching STREET, it is impossible to determine the proper choice for STREET tokenomics: Fixed or Infinite Supply. The good news is that this decision is built into the protocol via a Kill Switch design.

The Kill Switch

The STREET contract features a unique one-way kill switch that gives the community ultimate control over final tokenomic decision. This irreversible decision allows transitioning from DOGE-style infinite supply to Bitcoin-style fixed supply. The idea is to start with infinite supply for growth and adoption. At any time the community can can decide when to cap the supply. It’s one-time switched, though. Once capped, it’s permanently capped forever.

;; KILL SWITCH MECHANISM (ONE-WAY ONLY)
(define-data-var kill-switch bool false) ;; Default: infinite supply
(define-constant TOKEN_SUPPLY u10000000000000000) ;; 10B tokens (parity with WELSH)
 
(define-public (flip-kill-switch)
  (begin
    (asserts! (is-eq (var-get kill-switch) false) ERR_KILL_SWITCH_FLIPPED)
    (var-set kill-switch true) ;; CANNOT BE REVERSED
    (ok {kill-switch: true})
  )
)
 
;; SUPPLY LOGIC: INFINITE OR CAPPED AT 10B (WELSH PARITY)
(asserts!
  (or
    (not (var-get kill-switch))  ;; FALSE = Infinite supply (DOGE model)
    (<= (+ (ft-get-supply street) amount) TOKEN_SUPPLY)  ;; TRUE = 10B cap (WELSH parity)
  )
  ERR_EXCEEDS_TOTAL_SUPPLY)

Timeline

In the fixed supply scenario, the emission mints continues until the total supply cap of 10B tokens is reached.

(define-constant STREET_MINT_CAP u5000000000000000)
(define-constant TOKEN_SUPPLY u10000000000000000)
;; 5B tokens remain for emissions
 
(define-public (emission-mint) ;; contract has to call mint
  ;; existing code
  (begin
    (asserts!
      (or
        (not (var-get kill-switch)) ;; checks kill switch
        (<= (+ (ft-get-supply street) EMISSION_AMOUNT) TOKEN_SUPPLY) ;; stops at total supply
      )
      ERR_EXCEEDS_TOTAL_SUPPLY)
    (try! (ft-mint? street EMISSION_AMOUNT .rewards))
    ;; existing code
  )
)

Emitting 10,000 tokens every Bitcoin block until the gives community ample time to mature governance and make an informed decision. To the best of our knowledge, no one has ever launched an infinite supply token with the sole purpose of boosting a fixed-supply token. At the programmed emission rate, it will take about 5 years for the supply cap to be reached, so the community has plenty of time to debate, model and decide the best fate of the project.

Initial Distribution

Regardless of the Fixed vs Infinite supply debate, a hypothetical supply of 10,000,000,000 tokens was used to calculate the initial token distributions for STREET. We have to draw a line somewhere.

Five billion STREET is set aside for the rewards emissions, even if the kill switch is flipped. This 5 billion would represent 50% of the total supply.

Another 5 billion STREET (50% of total supply) is set aside to follow a strategic allocation designed to bootstrap the Welsh Street ecosystem while ensuring a fair distribution:

;; STREET MINT ALLOCATION (5 Billion Total)
(define-constant STREET_MINT_CAP u5000000000000000) ;; 5B tokens (50% of supply)
 
(define-public (street-mint (amount uint))
    (begin
        (asserts! (<= (+ (var-get street-minted) amount) STREET_MINT_CAP) ERR_EXCEEDS_STREET_MINT_CAP)
        (try! (ft-mint? street amount tx-sender)) ;; Mints to deployer for distribution
    )
)

Distribution Breakdown

Based on a 10 Billion Hypothetical Supply Cap: