Tokenomics Deep Dive

Complete breakdown of IFR fee mechanics, deflation model, token allocation, fair launch design, and fee-exempt addresses.

1. Fee-on-Transfer Mechanics

Every standard ERC-20 transfer of IFR triggers an automatic fee mechanism built directly into the token's _update function. This is not an external router or wrapper — the fee logic lives inside the token contract itself, making it impossible to bypass on any DEX or wallet transfer.

Fees are only applied on normal transfers between non-exempt addresses. Minting (from address(0)) and burning (to address(0)) are excluded. If either the sender or the recipient is marked as feeExempt, the entire fee is waived.

Fee Breakdown

Calculation Example

Contract Logic

The fee mechanism is implemented by overriding OpenZeppelin's _update internal function. All fee calculations use basis points (1 bps = 0.01%) for precision with integer arithmetic.

function _update(address from, address to, uint256 value) internal override {
    // Only apply fees on normal transfers (not mint/burn)
    // and when neither party is exempt
    if (from != address(0) && to != address(0)
        && !feeExempt[from] && !feeExempt[to])
    {
        uint256 burnSender    = (value * senderBurnBps)    / 10_000;
        uint256 burnRecipient = (value * recipientBurnBps) / 10_000;
        uint256 poolFee       = (value * poolFeeBps)       / 10_000;
        uint256 totalBurn     = burnSender + burnRecipient;
        uint256 netAmount     = value - totalBurn - poolFee;

        // Net amount to recipient
        super._update(from, to, netAmount);
        // Pool fee to receiver
        super._update(from, poolFeeReceiver, poolFee);
        // Burn — tokens go to address(0), totalSupply decreases
        super._update(from, address(0), totalBurn);
    } else {
        super._update(from, to, value);
    }
}

2. Deflation Model

Inferno is a purely deflationary token. There is no minting function beyond the initial supply creation in the constructor. Every taxed transfer permanently removes tokens from circulation by sending them to address(0), which decreases totalSupply.

Key Properties

• Initial supply: 1,000,000,000 IFR (1 billion)
• Burn rate per transfer: 2.5% of the transferred amount (2.0% sender burn + 0.5% recipient burn)
• No minting function exists — supply can only decrease, never increase
• Pool fee (1.0%) goes to poolFeeReceiver and does not reduce supply
• Burn rate is volume-dependent, not time-dependent — more trading = faster deflation

Projected Supply Scenarios

The following table illustrates how supply decreases based on cumulative transfer volume. These are simplified examples assuming uniform transfer sizes and no fee-exempt transfers.

Fee Governance

The owner (Governance contract with 48-hour timelock) can adjust the three fee rates via setFeeRates(). The hard cap of 500 bps (5%) is enforced on-chain — the sum of all three rates can never exceed this limit, even through governance action.

function setFeeRates(
    uint256 _senderBurnBps,
    uint256 _recipientBurnBps,
    uint256 _poolFeeBps
) external onlyOwner {
    require(_senderBurnBps + _recipientBurnBps + _poolFeeBps <= 500, "fees>5%");
    senderBurnBps    = _senderBurnBps;
    recipientBurnBps = _recipientBurnBps;
    poolFeeBps       = _poolFeeBps;
}

3. Token Allocation

The total initial supply of 1,000,000,000 IFR is distributed across six categories at deployment. All allocations are executed in the deploy script — there is no ongoing emission or inflation mechanism.

Allocation Visualization

Unlock Schedule Details

DEX Liquidity (40% — 400M IFR)

• Held by LP Reserve Safe for governance-controlled LP expansion
• Initial Uniswap V2 LP is already live via BootstrapVaultV3 finalise()
• Reserve additions require explicit governance timing

Liquidity Reserve (20% — 200M IFR)

• The initial smart-contract timelock ended 01.09.2026. All 200M IFR remains held and was NOT used for Bootstrap (Plan B decision, 08.03.2026).
• The contract currently permits at most 50M IFR per 90-day period. Capacity does not transfer automatically or accumulate as an automatic LP addition; 0 IFR has been withdrawn.
• Purpose: supplemental liquidity, market-making, or strategic partnerships

Team Vesting (15% — 150M IFR)

• Locked in the Vesting contract with a 12-month cliff
• After the cliff: linear vesting over 36 months
• Total vesting period: 48 months (4 years)
• Prevents team dumps and aligns long-term incentives

Treasury (15% — 150M IFR)

• Held in Gnosis Safe multisig (0x5ad6193eD6E1e31ed10977E73e3B609AcBfEcE3b)
• 150M IFR funded BootstrapVaultV3 in two Treasury transfers: 144.75M IFR plus a 5.25M IFR top-up
• Remaining balance used for development, operations, and strategic initiatives
• All disbursements require multisig approval

Community & Grants (6% — 60M IFR)

• Sent to Community Safe: 57.9M received after 1.5M burn (2.5%) + 0.6M pool fee (1%) = 2.1M total deducted (EOA not feeExempt)
• 50M allocated to Bootstrap funding via BootstrapVaultV3
• ~7.9M retained as operational reserve (after burn)

Builder Ecosystem (4% — 40M IFR)

• Dedicated pool managed by the PartnerVault contract (Mainnet: 0xc6eb7714bCb035ebc2D4d9ba7B3762ef7B9d4F7D)
• Partner rewards are not active. Planned distribution: IFR only for verified checkout redemptions at registered pilot partners, valued in EUR, vested over 6–12 months
• Hard budget per partner; the pool is never refilled
• All allocations vest linearly — no instant dumps
• Builder tokens grant DAO voting rights in Phase 4+

Note: BuybackVault and BurnReserve are not genesis allocations. The 1% IFR transfer-pool fee accrued in FeeRouterV1 until Proposal #21 (05.10.2026) and goes to BuybackController since; it is not automatically forwarded to either contract. Bootstrap was funded via Plan B from Treasury + Community Safe — not a standalone genesis bucket.

Bootstrap Event (Plan B — COMPLETED ✅ 05.06.2026)

• Funded via Plan B: Treasury Safe (144.75M initial + 5.25M top-up) + Community Safe (50M) = 200M IFR in BootstrapVaultV3
• Bootstrap period: 07.03.2026 – 05.06.2026 — finalise() executed 05.06.2026 23:51 UTC
• totalETHRaised: 0.030 ETH — LP Token: 0xbE495E9c0d8cc2DCf95570cf95B63c4844dF31A0
• BootstrapVaultV3 contract: 0xf72565C4cDB9575c9D3aEE6B9AE3fDBd7F56e141 — FINALIZED — Block 25254575 — TX: 0x949848bd…
• Proposal #15 executed 08.06.2026: LP Token feeExempt = true
• Proposal #16 executed 09.06.2026: CommitmentVault P0 = 300,000,000 wei

LP Allocation — Phased Release

Iron rule: ETH always stays in the LP — never withdrawn by the team.

BuybackVault (protocol contract — not a genesis allocation)

• Accepts ETH for a governed ETH-to-IFR buyback; it does not receive the 1% IFR transfer-pool fee automatically
• Not pre-funded at genesis. Current balance: 0 IFR.
• BuybackController.sol — Deployed 14.04.2026 (0x1e05...F7c):
  • 50/50 split: buyback+burn / LP deepening
  • Permissionless execute() with 24h cooldown
  • Slippage protection (minIFR/minETH parameters)
  • Governance wiring: Proposal #13 (feeExempt) executed 16.04.2026, Proposal #14 (native-ETH feeCollector) executed 18.04.2026. Execution remains trigger-, cooldown- and balance-dependent; since Proposal #21 (05.10.2026) the 1% IFR pool fee goes to BuybackController; the IFR previously held by FeeRouterV1 was recovered to the Treasury Safe on 07.10.2026 (Proposals #22/#23).

BurnReserve (protocol contract — not a genesis allocation)

• Receives IFR only through explicit transfers or buyback execution; it is not the automatic 1% fee receiver
• Not pre-funded at genesis. Current balance: 0 IFR.
• Structured token burning to accelerate deflation
• Burns are executed via governance — transparent and verifiable on-chain

4. Fair Launch Model (CFLM)

Inferno uses a Community Fair Launch Model (CFLM), which guarantees that no individual or group receives preferential access to tokens before public trading begins.

Core Principles

How It Works

1. The deploy script mints the entire 1B IFR supply to the deployer
2. The deployer distributes tokens to all allocation contracts (Vesting, LiquidityReserve, Treasury, Community wallet)
3. 40% is paired with ETH on Uniswap V2, creating the initial liquidity pool
4. Executed Proposal #7 set the Deployer EOA feeExempt = true; the active exemption is publicly disclosed and remains governance-revocable
5. Ownership of InfernoToken (and all admin functions) is transferred to the Governance contract with its 48-hour timelock
6. From this point, no single entity has privileged access to the token

5. Fee Exempt Addresses

Certain protocol contracts are marked as feeExempt to ensure that internal protocol operations (vesting releases, reserve unlocks, buyback executions, burns) are not taxed. Without these exemptions, protocol mechanisms would lose tokens to fees on every internal transfer, breaking the intended allocation math.

Exempt Contracts

Exemption Rules

• If either the sender or recipient is feeExempt, the entire transfer is fee-free
• Exemptions are set via setFeeExempt(address, bool) by the owner (Governance contract)
• The Deployer EOA is currently exempt under Proposal #7; this is an active disclosed governance-controlled exception, not a revoked historical permission
• Adding or removing exemptions requires a governance proposal with 48-hour timelock

// Setting fee exemption (onlyOwner = Governance contract)
function setFeeExempt(address account, bool exempt) external onlyOwner {
    feeExempt[account] = exempt;
    emit FeeExemptUpdated(account, exempt);
}

// Fee check in _update:
// Both sender AND recipient must be non-exempt for fees to apply
if (from != address(0) && to != address(0)
    && !feeExempt[from] && !feeExempt[to])
{
    // ... apply fees
}

6. PartnerVault & Partner Rewards

The Builder Ecosystem Pool (4%, 40M IFR) sits in the PartnerVault contract on Ethereum Mainnet. Partner rewards are not active: no partner is registered and no reward has been paid (verified on-chain: totalAllocated, totalRewarded and totalClaimed are 0). The pool is never refilled.

Decided Model: Verified Checkout Redemptions

From the first pilot partner on, rewards follow one rule: IFR only for a real, seller-confirmed checkout redemption at a registered pilot partner. A lock alone never earns a reward.

7. Bootstrap Pricing (Phase 0)

In the initial bootstrap phase, all pricing is token-denominated. There is no USD pricing, no oracle, and no TWAP — this is a deliberate design decision for a zero-capital launch.

How It Works

Why Token-Denominated?

• Zero capital required — no initial liquidity needed for price feeds
• Manipulation-resistant — no oracle to exploit, no flash loan attacks on pricing
• Fully on-chain — the lock amount is a simple uint256, verifiable by any contract
• Automatic adjustment — as IFR price increases, the USD-equivalent cost rises naturally, reducing token emission pressure

8. Protocol Fee & FeeRouter

The FeeRouterV1 contract handles protocol-level fees on IFR swaps. These are separate from the token's built-in transfer fees (2.5% burn + 1% pool fee).

Where the 1% IFR pool fee goes: from Proposal #6 until Proposal #21 the token's poolFeeReceiver was FeeRouterV1. FeeRouterV1 forwards only native-ETH swap fees and has no IFR withdrawal function; the IFR it held was recovered to the Treasury Safe on 7 October 2026 by a governed batch (CWA-02). Since Proposal #21 (executed 5 October 2026, block 26,124,660) pool fees go to BuybackController, where the IFR stays recoverable by Governance via withdrawIFR (the deployed controller is dormant, JUL-08, so nothing is used automatically). FeeRouterV1 holds 0 IFR since that recovery.

Permanently lost IFR: only CV-01 — 26,418,467.99 IFR in CommitmentVault V1 price-conditioned tranches that can never unlock (not burned; still counted in totalSupply), 2.651% of totalSupply at block 26,151,369 (9 October 2026). The 734,545.07 IFR held by FeeRouterV1 are not lost: they were recovered to the Treasury Safe on 7 October 2026 by a governed batch (CWA-02, Proposals #22 and #23, block 26,143,797) and are unallocated Treasury IFR. FeeRouterV1 holds 0 IFR. Details: Transparency.

Fee Structure

Discount Vouchers (IFR Points)

Users earn points through verified actions in the IFR ecosystem. Points can be redeemed for a signed EIP-712 discount voucher, applied against the FeeRouter protocol fee at swap time. A voucher waives that fee up to the current on-chain protocol fee (currently 5 bps, 0.05%); it never reduces the IFR token transfer fee or burn.

Contract Address (Mainnet)

0x4807B77B2E25cD055DA42B09BA4d0aF9e580C60a — Etherscan