Protocol economics

A market with
a memory.

Every trade moves a transparent curve and routes value to the face, its key holders and the protocol. No hidden spread. No discretionary pricing.

Curven² × 100
Total fee13%
Settlement$faces
01

The model

A key is a liquid position in one person's market. Buying walks the price up the curve. Selling walks it down. The contract is always the counterparty.

Price of key nn² × 100denominated in $faces
01Deterministic

The same supply always produces the same next-key price.

02Continuous

Every market can be bought or sold without waiting for an order.

03Auditable

Reserve, supply and fees are visible in contract state.

02

The 13% split

The fee is charged on buys and sells, then divided atomically inside the same transaction.

One trade
100%
plus 13% in fees on top
curve100%

Locked in the vault. This is what a seller gets back when they walk the curve down — it is not a fee, it is the position itself.

the account5%

Accrues to whoever the account belongs to, from the very first trade — even before they have claimed it.

key holders3%

Split between everyone holding that account's keys, in proportion to how many they hold. This is what makes a key pay while the person stays quiet.

protocol5%

Keeps the lights on. Sent straight to the treasury on every trade.

The split is not a dashboard calculation. It is enforced by the market contract at settlement.

03

Worked example

Buying one key when 10 keys are already out.

Curve price10,000 $faces
To the face · 5%500
To key holders · 3%300
To the protocol · 5%500
You pay11,300 $faces
Immediate sell returns8,700 $faces

A round trip costs about 26%. The system rewards conviction, not high-frequency churn.

04

Price curve

Early keys price uncertainty. Later keys price proven demand. The step between them is public before anyone trades.

0key 1
2Kkey 5
8Kkey 10
58Kkey 25
240Kkey 50
980Kkey 100

Key one belongs to the face and cannot be sold. It anchors the curve so the next key can never become free again.

05

Incentives

For the face5%

Attention becomes an asset.

Their share accrues before they claim and remains withdrawable afterward.

For key holders3%

Holding has cash flow.

Every trade in that face's market contributes to the holder pool.

For the protocol5%

The network funds itself.

Protocol fees power rewards and the long-term operation of faces.