Four numbers decide what happens to a fee, and each is a boundary the fee has to pass. Not one of them has been approved, and nobody has the authority to move them, because no authority has been designed.
◇PROPOSED×NOT DEPLOYED
1Hook wall · fee aperture0.30% · range 0–1.00%
2Partition80 / 20 · 20% never to stakers
3Price-limit barrier1.00% · range 0.25–3.00%
4Custody boundaryone contract holds principal
5Authority to change any rulenone designed · 8 of 8 unresolved
6
7
1Hook wall · fee aperture0.30% · range 0–1.00%
2Partition80 / 20 · 20% never to stakers
3Price-limit barrier1.00% · range 0.25–3.00%
4Custody boundaryone contract holds principal
5Authority to change any rulenone designed · 8 of 8 unresolved
Every eligible trade in the TAON/TAO market pays a small protocol fee.
02
Eligible fees buy TAO
Most of each fee is used to buy TAO, which goes into a shared reserve.
03
Stakers share the reserve
A TAON position accrues a proportional claim on the TAO the reserve is funded with.
On a 100 τ trade, 0.3000 τ is captured, 0.2400 τ of it buys TAO for the reserve and 0.0600 τ is kept for running costs. If the purchase would lose more than 1.00% to price movement, it does not happen. None of the 8 parameters has been approved: 8 of 8 have nobody with the authority to change them, because no authority has been designed. ×NOT DEPLOYED
The route, and the rule at each stage
select a stage to mark its parameters below
Standing of the rules
Parameters proposed
8
none approved, modeled against real liquidity, or reviewed◇PROPOSED
With an authority to change them
0 of 8
no authority has been designed×UNAVAILABLE
With a delay on a change
0 of 8
no timelock has been specified×UNAVAILABLE
Pause authority
Unresolved
the rule is specified for acquire and position; who may trigger it is not×UNAVAILABLE
Scenario the interface models
◇SIMULATION
One scenario input can tighten a rule. Where it does, both values are shown, named apart. The scenario is chosen on the dashboard; this page models standard activity.
Standard activity enforces every parameter at its proposed value. No qualifier applies.
Protocol specification
The rules above, stated exactly: every parameter, the architecture it would run in, the governance that does not exist behind any of it, the contracts nobody has written, and the risks.
Framing
Parameter registry
Every value is proposed. A value with no authority and no delay behind it is a suggestion, and the registry says so in the same row rather than in a footnote.
◇PROPOSED
The registry scrolls sideways.
Parameter registry. Each row gives the proposed value, the stage it governs, the range it may move within, the authority that could change it, the delay that would apply, the evidence behind it and its status.
Parameter
Proposed value
Allowed range
Modeled value
Authority
Delay
Evidence
Status
Protocol feeCharged by the v4 hook on swaps through eligible TAON pools only. The token itself has no transfer fee.
30 bps
0–100 bps
30 bpsas proposed
Unresolved
Unresolved
Matches a common Uniswap v4 fee tier. Not modeled against real flow.
◇PROPOSED
Acquisition shareShare of the captured fee used to acquire TAO for the reward reserve.
80%
Must total 100% with the treasury share
80%as proposed
Unresolved
Unresolved
Asserted by test: the two shares always account for the whole captured fee.
◇PROPOSED
Treasury shareShare of the captured fee retained for protocol operations. Never paid to stakers.
20%
Must total 100% with the acquisition share
20%as proposed
Unresolved
Unresolved
No operating budget has been modeled, so the split is a placeholder proportion.
◇PROPOSED
Execution thresholdPending capital must reach this before an acquisition runs, so gas does not consume small batches.
0.1 TAO
Above the gas cost of one acquisition
0.1 TAOas proposed
Unresolved
Unresolved
Robinhood Chain gas costs for a v4 swap have not been measured.
◇PROPOSED
Execution cooldownMinimum gap between acquisitions. Limits how precisely an observer can front-run the executor.
1h
15m–24h
1has proposed
Unresolved
Unresolved
Chosen to blunt front-running, not derived from observed mempool behaviour.
◇PROPOSED
Stake lockHow long a stake must be held before it can be withdrawn. Stops a staker from entering purely to capture a pending credit.
24h
0–7d
24has proposed
Unresolved
Unresolved
Stops a position entering purely to capture a pending credit. Not tuned.
◇PROPOSED
Slippage ceilingAn acquisition that would exceed this reverts rather than filling at a bad price. The batch is retried later.
100 bps
25–300 bps
100 bpsas proposed
Unresolved
Unresolved
TAO book depth on chain 4663 is unmeasured, so this is unvalidated.
◇PROPOSED
Claim thresholdSmallest claimable amount, so a claim cannot cost more in gas than it returns.
0.0005 TAO
Above the gas cost of one claim
0.0005 TAOas proposed
Unresolved
Unresolved
Prevents a claim costing more in gas than it returns. Gas cost unmeasured.
◇PROPOSED
Parameter
Protocol feeCharged by the v4 hook on swaps through eligible TAON pools only. The token itself has no transfer fee.
Proposed value
30 bps
Allowed range
0–100 bps
Modeled value
30 bpsas proposed
Authority
Unresolved
Delay
Unresolved
Evidence
Matches a common Uniswap v4 fee tier. Not modeled against real flow.
Status
◇PROPOSED
Parameter
Acquisition shareShare of the captured fee used to acquire TAO for the reward reserve.
Proposed value
80%
Allowed range
Must total 100% with the treasury share
Modeled value
80%as proposed
Authority
Unresolved
Delay
Unresolved
Evidence
Asserted by test: the two shares always account for the whole captured fee.
Status
◇PROPOSED
Parameter
Treasury shareShare of the captured fee retained for protocol operations. Never paid to stakers.
Proposed value
20%
Allowed range
Must total 100% with the acquisition share
Modeled value
20%as proposed
Authority
Unresolved
Delay
Unresolved
Evidence
No operating budget has been modeled, so the split is a placeholder proportion.
Status
◇PROPOSED
Parameter
Execution thresholdPending capital must reach this before an acquisition runs, so gas does not consume small batches.
Proposed value
0.1 TAO
Allowed range
Above the gas cost of one acquisition
Modeled value
0.1 TAOas proposed
Authority
Unresolved
Delay
Unresolved
Evidence
Robinhood Chain gas costs for a v4 swap have not been measured.
Status
◇PROPOSED
Parameter
Execution cooldownMinimum gap between acquisitions. Limits how precisely an observer can front-run the executor.
Proposed value
1h
Allowed range
15m–24h
Modeled value
1has proposed
Authority
Unresolved
Delay
Unresolved
Evidence
Chosen to blunt front-running, not derived from observed mempool behaviour.
Status
◇PROPOSED
Parameter
Stake lockHow long a stake must be held before it can be withdrawn. Stops a staker from entering purely to capture a pending credit.
Proposed value
24h
Allowed range
0–7d
Modeled value
24has proposed
Authority
Unresolved
Delay
Unresolved
Evidence
Stops a position entering purely to capture a pending credit. Not tuned.
Status
◇PROPOSED
Parameter
Slippage ceilingAn acquisition that would exceed this reverts rather than filling at a bad price. The batch is retried later.
Proposed value
100 bps
Allowed range
25–300 bps
Modeled value
100 bpsas proposed
Authority
Unresolved
Delay
Unresolved
Evidence
TAO book depth on chain 4663 is unmeasured, so this is unvalidated.
Status
◇PROPOSED
Parameter
Claim thresholdSmallest claimable amount, so a claim cannot cost more in gas than it returns.
Proposed value
0.0005 TAO
Allowed range
Above the gas cost of one claim
Modeled value
0.0005 TAOas proposed
Authority
Unresolved
Delay
Unresolved
Evidence
Prevents a claim costing more in gas than it returns. Gas cost unmeasured.
Status
◇PROPOSED
Unresolved8 of 8 authorities and 8 of 8 delays. Until both exist a proposed number is not a rule anyone is bound by.
The two shares must account for the whole fee. That is asserted by a test, not assumed: if a future edit made them sum to anything but 100%, the build fails rather than quietly leaking capital.
Four responsibilities, one custody boundary
No single contract both holds user principal and executes market orders. That separation is what lets acquisition pause without freezing claims.
The diagram scrolls sideways. Every box is also described in the mechanism sections below.
Mechanism
The four rules that need more room than the chain gives them.
Unresolved governance
Eight questions the design has not answered. They are listed rather than omitted, because an unanswered governance question is a risk whether or not a website mentions it.
TAONIC is not TAO, not wrapped TAO, and not an official product of the Bittensor Foundation, Robinhood Markets, Inc., or anyone else. It is not a Bittensor subnet and performs no validator, miner or emissions role. Rewards are denominated in τ and would depend entirely on eligible volume that has not happened. Current readiness