8. Tokenomics

The $KTQ supply is structured to reinforce an economy where execution produces value and participation requires commitment.

There is no variable inflation. There is no staking emissions schedule. All token flow is tied to real usage.

8.1 Total Supply

Total Supply: 1,000,000,000 $KTQ (fixed)

No additional minting function exists.

8.2 Allocation Model

Allocation	% of Supply	Mechanism	Purpose
Machine & Operator Rewards	35%	Distributed only upon verified execution	Direct linkage to productive output
Network Expansion Fund	20%	Strategic deployment + machine onboarding	Scales the Assembly footprint
Agent Developer Incentive Pool	15%	Streamed based on Agent usage	Sustains innovation in behavior modules
Treasury Reserve	15%	Controlled via governance	Liquidity, partnerships, grants
Core Contributors	10%	Allocated at launch	Aligns incentives with execution responsibility
Liquidity Provision	5%	Deployed into DEX liquidity pools	Market functionality

This model emphasizes productive circulation, not front-loaded insider control.

8.3 Circulation Dynamics

$KTQ flows through the economy as follows:

Operators spend KTQ → to request machine labor
Machines receive KTQ → for verified execution
Agent Developers receive KTQ → when their behavior is used
Protocol receives KTQ → through coordination fees
Treasury reallocates KTQ → to expand machine capacity

Circulation is continuous and purpose-driven.

8.4 Supply Discipline & Scarcity Controls

Supply scarcity increases through:

Mechanism	Effect
Coordination Fees	Recirculates value into expansion resources
Machine Bond Slashing (Phase II)	Removes supply from unreliable machines
Optional Governance-Controlled Burns	Reduces supply during high utilization
Agent Competition	Unused Agents stop earning → incentive refocus on best behaviors

The token becomes more scarce as machines improve — not as time passes.

8.5 Treasury Governance and Deployment

Treasury funds:

• Machine onboarding

• Developer bounties

• Operator grants

• Demonstration environments

• Infrastructure growth

This ensures long-term network expansion without emissions.

8.6 Economic Integrity

There is no reward without execution, which prevents:

• Value leakage to passive holders

• Inflationary dilution

• Reward farming without contribution

$KTQ is a productive asset, not a speculative placeholder.