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Mentat

Tokenomics

Economics that reward the proof.

Mentat's fee model aligns three things: market quality (creators escrow stake), timely settlement (proof submitters earn a bounty that shrinks with delay), and protocol sustainability (a transparent Treasury funds AI usage, audits, and incentives).

The MVP launches without a governance token. Fees are denominated in the market quote asset — USDC by default — and configured at market creation. The numbers below are the protocol defaults; UIs are encouraged to keep them consistent so discovery and expectations stay legible across markets.

Fee structure

Three fees, every split documented.

Trading fee

2.0% of trade volume

Split · 1.0% → LPs · 0.75% → Treasury · 0.25% → market creator

Charged on every swap/order fill. Denominated in the market quote asset (e.g. USDC).

Settlement fee

0.5% of resolved pool

Split · 0.35% → proof submitter bounty pool · 0.15% → Treasury

Deducted when the market settles. Funds the zkTLS proof bounty for the same market.

Dispute bond

Variable · 100 USDC minimum

Split · Returned on successful challenge · forfeited to proof submitter on failure

Posted by challengers during the post-settlement dispute window.

Creator stake

Skin in the game, by default 50 USDC.

Every market requires a creator stake — default 50 USDC — escrowed in the Solana program. Refunded automatically on clean resolution. Slashed if any of the following hold:

  • Market resolves INVALID due to ambiguous criteria.
  • Curator or governance forcibly closes the market before trading opens.
  • Creator is linked to malicious activity — prompt injection, duplicate spam, policy violations.

Slashed stake distributes 50% to Treasury, 25% to affected LPs, and 25% to the curator pool.

Proof submitter incentives

Faster proofs pay more.

The settlement fee feeds a per-market proof bounty pool. Whoever submits a valid zkTLS attestation earns a share that decays with latency:

SLA window

≤ 30 min after outcome data appears

100% bounty

SLA window

30 min – 6 h

50% bounty

SLA window

> 6 h

10% bounty · remainder routes to Treasury

If no proof arrives before the resolution deadline, the market can be disputed or marked INVALID — escrowed funds return to traders, and the bounty pool flows to Treasury.

Curators & Treasury

Off-chain reputation, on-chain stipend.

Curators earn reputation points tracked off-chain in the MVP. Each week, active curators share a stipend funded from Treasury — target allocation is 10% of weekly protocol revenue. Future phases may require curators to stake a Mentat governance token; for now, the focus is rapid iteration and accurate approvals.

The Treasury pays for AI model usage, security audits, bug bounties, and liquidity incentives. Disbursements are controlled by the core team multisig initially. A public dashboard reports incoming fees and outgoing spend so the flow stays externally verifiable.

Lifecycle

Fee flow, step by step.

  1. 01

    Creation

    Creator deposits stake. Trading and settlement fee parameters are written into the market account.

  2. 02

    Trading

    Each trade routes fees to LPs, Treasury, and the creator instantly — no rebate cycles, no off-chain accounting.

  3. 03

    Resolution

    Proof bounty and settlement fee are released when a valid zkTLS proof lands and the market settles.

  4. 04

    Disputes

    Bonds enter escrow during the challenge window. Success routes funds to the challenger; failure rewards the proof submitter.

  5. 05

    Post-resolution

    Stake refund or slash is executed based on outcome. Treasury ledger updates publicly.

Future

What we have not built yet.

MVP economics intentionally exclude a governance token. The parameters below are explicit candidates for later milestones, not present-day claims:

  • Mentat governance token for ballot-weighted parameter changes.
  • Dynamic fee tiers keyed to market risk, liquidity depth, or curator reputation.
  • Insurance fund for systemic failures (proof provider outage, oracle compromise).
  • Optional revenue share to communities hosting market embeds.

All parameters live in the repo.

Fee splits, slash conditions, SLA tiers — read the source. The on-chain program is the source of truth; this page is a faithful summary of the MVP defaults.

View tokenomics doc Settlement design →