Protocol Mechanics of the $BOTG Token

The $BOTG token is designed to underpin a sustainable and decentralized ecosystem through a series of carefully engineered tokenomic mechanisms.

This framework is built to be fully permissionless and to sustain utility indefinitely on the Permaweb. The system is structured around automated buybacks, strategic token LP, and robust holder incentives—all executed by autonomous agents in the future to ensure transparency, security, and continuous value alignment.

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1. Automated Buyback & LP Mechanisms

1.1 Fee-Driven Buybacks

• Allocation: 5% of all fees generated by the Botega platform—including transaction fees, settlement fees, and fees from agents—will be dedicated to buying back $BOTG tokens.

• Execution: An autonomous agent will execute the buyback process. Tokens acquired through this mechanism will be LPed and locked to enhance the ecosystem Liquidity. Activation is scheduled for the coming weeks following the PI launch, with details published retrospectively to maintain market integrity and avoid frontrunning.

1.2 PI Index Delegated Funds Buybacks (Coming Soon)

• Allocation: 10% of all funds delegated to Botega from the PI Index will be used to repurchase $BOTG tokens.

• Rationale: This mechanism is designed to reflect community engagement. As more funds are delegated, the protocol will utilize a portion of these funds to purchase and LP additional $BOTG tokens. Activation is scheduled for the coming weeks following the PI launch, with details published retrospectively to maintain market integrity and avoid frontrunning.

1.3 Summary of Buyback Mechanisms

Mechanism	Allocation	Execution	Status
Fee-Driven Buybacks	5%	Autonomous agent (future execution)	Coming Soon (post-PI launch)
PI Index Delegated Funds Buybacks	10%	Planned via autonomous agent mechanism	Coming Soon (post-PI launch)

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2. Holder Incentives

2.1 Airdrop Eligibility

• Qualification: Holding a minimum of 10,000 $BOTG qualifies an account for any potential future airdrops distributed through the Botega platform.

2.2 Trading Fee Reduction (Coming Soon)

• Incentive Structure: Users who hold and lock a specified amount of $BOTG tokens can benefit from reduced trading fees on swaps and through agent interactions.

• Locking Requirement: A minimum locking period of 6 months is required to qualify.

• Fee Reduction Tiers:

BOTG Holding	Fee Reduction
1,000 $BOTG	1%
10,000 $BOTG	10%
100,000 $BOTG	25%

• Status: This functionality is under development and will be available soon.

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3. Sustainability

3.1 Scarcity Through BuyBack

• Mechanism: Continuous repurchase and LP of tokens—via both fee-driven mechanisms and PI Index delegated funds (when active)—are designed to systematically reduce the circulating supply over time.

3.2 Alignment of Interests

• Community-Driven Approach: Holder incentives such as airdrop eligibility and fee reductions encourage long-term participation, aligning individual benefits with the broader success of the platform.

3.3 Fully Permissionless Protocol

• Design Philosophy: The entire protocol is built to be fully permissionless, ensuring that every participant can interact with the system without centralized restrictions. This design supports an ever-evolving ecosystem that will sustain utility on the Permaweb indefinitely.