Bonded Model

The framework

Bonded tokenomics is the system that sits between rewards and the open market. Instead of paying incentives in liquid GYND, Gyndore pays them as bGYND: a receipt token backed 1:1 by GYND already held in the bonding contract. Converting that receipt into liquid GYND is a purchase, not a free claim, so every exit leaves capital inside the protocol.

The goal is alignment on three axes at once. Protocol growth gets deeper owned liquidity. Users keep a real claim on DEX fee revenue in USDC whether they hold GYND or bGYND. Long-term token value is supported by buybacks and owned pools rather than by printing more supply.

Against emissions

Most token models fund growth by minting more of the token and handing it out. That works until emissions outrun demand: supply expands, rewards hit the market, and liquidity providers become sellers instead of owners. Gyndore refuses that loop. Community rewards are distributed as bGYND against GYND that already exists, and the only path to liquid GYND from those rewards is paying USDC into the protocol.

The comparison is the design brief. Supply stays fixed. Incentives do not create free-floating sell pressure the moment they land. Liquidity growth is funded by conversion capital, not by another mint. Value accrual and revenue distribution stay tied to real trading fees paid in USDC.

Two sides of one model

GYND is the liquid, fixed-supply fee token. bGYND is the bonded incentive side of the same system. Both stake into the same pool on the same terms, with 1 bGYND counting as 1 GYND, so earning USDC never requires converting first. The difference appears only when someone wants liquid GYND from a bGYND reward.

The full community rewards allocation, 50% of supply, is distributed as bGYND. It is used primarily to reward liquidity providers and align them with long-term liquidity growth, and it also funds eligible community-focused airdrops through the GLB process. Supply & allocation has the bucket breakdown.

The unbonding cycle

Unbonding is a purchase. The holder pays 70% of GYND's current market value in USDC, burns the submitted bGYND, waits through a 24-hour cooldown, and then claims 1 GYND for each bGYND submitted. New requests are accepted only while GYND trades above $0.10. The market price can move while a request is pending.

Staking and unbonding are not a sequence. Holding and staking bGYND is already a complete position that earns the same USDC as GYND. Unbonding is a separate decision to buy the liquid token and, in doing so, fund the protocol.

Because bGYND is distributed as an incentive rather than sold, paying 70% of market value for the underlying GYND leaves a 30% gap before gas and any price movement during the cooldown. That gap is intentional: it prices the conversion as a purchase and keeps the captured USDC inside the ecosystem.

Where capital goes

USDC captured on conversion is allocated dynamically between protocol-owned liquidity and GYND buybacks according to market selling pressure. Both destinations point back at the fee engine.

• Protocol-owned liquidity buys blue-chip assets such as cbBTC and USDC and adds them to the protocol's own pools. That lifts TVL and deepens liquidity. Deeper pools mean less slippage and more volume through the DEX, which in turn means more fee revenue for stakers.
• GYND buybacks purchase GYND from the open market and add it to the treasury, where it is staked like any other holder and earns the same USDC rewards. More captured capital moves to buybacks when the protocol needs stronger immediate support against selling pressure.

Growth, Balance, Defence

The split between owned liquidity and buybacks is not fixed. The protocol shifts across three modes as selling pressure changes, so the same conversion capital can emphasize long-term depth or near-term market support without leaving the ecosystem.

Growth leans into owned liquidity while conditions are calm. Balance splits the flow when pressure is mixed. Defence prioritizes buybacks when the market needs stronger immediate support. In every mode, the capital remains inside Gyndore as long-term assets the protocol keeps.

The flywheel

Put together, the loop is self-reinforcing. bGYND incentives attract liquidity providers. Deeper pools generate more trading volume. Volume pays GYND and bGYND stakers in USDC. Conversions add owned liquidity and buybacks underneath the whole system, so the next turn of the loop starts from a stronger base.

Nothing in that loop depends on a later governance decision. The splits and destinations are written into contracts with no admin key and no upgrade path, so the only real variable is how much the protocol gets used. The Big Picture walks the same flywheel from the protocol side.

Emissions schedule

Emissions of bGYND are tuned daily rather than run on a fixed calendar schedule, so incentives can respond to conditions instead of printing on autopilot. For most people the path stays simple: provide liquidity, earn bGYND, and stake it for the same USDC share as GYND. They can also unbond it. Converting is a purchase that sends capital into protocol-owned liquidity and GYND buybacks, and the 70% conversion price leaves an arbitrage gap for anyone who wants the liquid token.

For the tokens themselves, contracts, and allocation table, read GYND & bGYND. For how trading fees reach stakers, read Fees & Revenue. For what can go wrong, read the Disclaimer.