Core Protocol Framework

1. ERC7527-smt Protocol: Interstellar NFT Minting and Fund Allocation

This protocol serves as the entry point to the ecosystem, managing the minting of Interstellar NFTs and the automated allocation of the resulting funds.

• Protocol Overview

  • Standard: A customized development based on EIP-7527.

  • Core Features:

    • Dynamic Fund Routing: Minting revenue is automatically distributed by the smart contract to various purpose-driven pools.

    • Black Hole Liquidity: A portion of the funds is used to add liquidity (LP), with the LP tokens being permanently locked in a black hole address to enhance price stability.

    • Permissionless Control: The contract is open-source with no admin keys, operating entirely based on preset rules to achieve decentralized governance.

• Fund Allocation Rules When a user mints an Interstellar NFT, the ERC7527-smt smart contract allocates the funds as follows:

  • Instant Rewards (approx. 17.5%):

    • Phase 1: 100 days (currently ended) Level 2 10% each (direct 10% + 10%)

    • Phase 2: 100 days (starting from the date of group purchase launch) Level 2 5% each (direct 5% + indirect 5%)

    • Phase 3: 100 days (after the 97% discount for group purchase ends) Level 2 2.5% each (direct 2.5% + indirect 2.5%)

  • Group Buying Reward Pool (approx. 10%): Used to incentivize user participation in group buying activities,SMT Settlement.

  • Contract Reserve Fund (70%): The core of the protocol, further managed by a 7/2/1 rule:

    • 70% (Main Reserve Pool): Used for market making and price stability, algorithmically purchasing SMT under specific conditions.

    • 20% (NFT Buyback Pool): When a user triggers an NFT buyback, these funds are used to add SMT/BNB liquidity, serving as the sole source for NFT buybacks.

    • 10% (Auto-LP Pool): Each time a user triggers a specific action, 10% of the funds in this pool are used to add SMT/BNB liquidity, which is then sent to the black hole.

• Fund Flow Diagram

  graph TD
      A[Interstellar NFT Minting Revenue] --> B[ERC7527-smt Smart Contract]
      B --> C1[Instant Rewards: ~17.5%]
      B --> C2[Group Buying Reward Pool: 10%]
      B --> D[Contract Reserve Fund: 70%]
  
      C1 --> C11(Multi-level Referrers)
      C2 --> C21(Successful Group Buyers)
  
      D --> D1[Main Reserve Pool: 70% of 70%]
      D --> D2[Auto-LP Pool: 10% of 70%]
      D --> D3[NFT Buyback Pool: 20% of 70%]
  
      D1 --> D11{Market Management Trigger}
      D11 --> |Price Too Low| D111[Buy SMT, Add LP, Send to Black Hole]
      D11 --> |Price Too High| D112[Buy SMT, Send to Black Hole]
  
      D2 --> D21[User-Triggered LP Addition]
      D3 --> D31[User-Triggered NFT Buyback]

• Main Reserve Pool Invocation Rules

  • Condition 1: Price Stabilization (Buy SMT & Add LP)

    • Trigger: When SMT price $P_{smt} < 0.95 \times MA_7$ (7-day moving average) and volatility > 5%.

    • Action: Use the reserve fund to buy SMT from the DEX, add it as LP with BNB in a 1:1 ratio, and then send the LP tokens to the black hole.

  • Condition 2: Enhancing Deflation (Buy SMT & Burn)

    • Trigger: When SMT price $P_{smt} \geq 1.05 \times MA_7$ and volatility > 2%.

    • Action: Directly buy SMT from the market and transfer it to the black hole address to enhance deflation.

2. IBO (Initial Burn Offering) Dynamic Production Reduction Protocol

Inspired by the Bitcoin halving mechanism, this protocol introduces a dynamic token (SMT) production model driven by community consensus.

• Core Concept: Anyone can mint SMT (governance token) by burning GUP (utility token). The difficulty of minting increases dynamically with the total network-wide burn amount.

• Consensus Mechanism: CCO (Community Consensus Offering) + POP (Proof of Position), ensuring actions align with the collective interest through proof of participation.

• Minting Difficulty Formula D(t)=D0​×(1+γ)n

  • $D(t)$: Minting difficulty at time t.

  • $D_0$: Initial difficulty, 10 GUP = 1 SMT.

  • $\gamma$: Difficulty growth rate, 1%.

  • $n$: Number of difficulty adjustments, calculated as the total GUP burned B(t) divided by 1 million. $n = \lfloor B(t) / 1,000,000 \rfloor$.

• Terminal Condition: When difficulty $D(t) \geq 1000$, the protocol enters a constant difficulty phase (1000 GUP = 1 SMT).

• Key Phase Data Forecast Table

Phase	Cumulative GUP Burned (Millions)	Difficulty Factor (GUP/SMT)	SMT Output (per 1M GUP)	Estimated Time Interval
0	0	10	100,000	-
1	1	10.1	99,010	~30 days
2	2	10.2	98,039	~10 days
3	3	10.3	97,087	~5 days
...	...	...	...	...
Final	≥ 462	1000	1,000	~0.5 hours

• Anti-Whale Mechanism To prevent manipulation of early production, a daily burn limit and slippage tax are implemented.

  • Daily Burn < 100k GUP: No restrictions.

  • 100k < Daily Burn ≤ 500k GUP: The excess amount must be spread over time and is subject to a 1%-5% dynamic slippage tax (collected SMT is burned).

3. Interstellar NFT Health Value Dynamic Decay Protocol

The earning power (GUP yield efficiency) of an Interstellar NFT decays over time to encourage sustained ecosystem activity.

• Health Value Calculation Formula H(t) represents the health value on day t: $$ H(t) = \begin{cases} 100% & 1 \le t \le 30 \ 100% - 0.15% \times (t-30) & 31 \le t \le 90 \ 91% - 0.2% \times (t-90) & 91 \le t \le 150 \ 79% - 0.25% \times (t-150) & 151 \le t \le 210 \ 64% - 0.5% \times (t-210) & 211 \le t \le 270 \ 34% - 0.1% \times (t-270) & 271 \le t \le 600 \end{cases} $$

• Health Value Decay Curve

  Health (%)
  100├─────────● (30, 100%)
     │           \
   90┤            ● (90, 91%)
     │             \
   80┤              ● (150, 79%)
     │               \
   70┤                ● (210, 64%)
     │                  \
     │                   \
   30┤                    ● (270, 34%)
     │                      \
    0└───────────────────────● (600, 1%)───> Days
       0        300        600

4. Interstellar NFT Health Value Recovery Protocol

To incentivize user retention and capital inflow, multiple methods are designed to restore an NFT's health value to 100%.

• Recovery Methods

  1. Invitation & Purchase: Referring a new user to purchase and stake an NFT grants the referrer a recovery weight. Recovery amount $ \Delta H = \min(20\% \times P_{\text{downline}}, 100\% - H_{\text{current}})$.

  2. NFT Upgrade: Upgrading a lower-tier NFT to a higher tier automatically restores its health to 100%.

  3. Paid Recovery: Users can pay in USDT or SMT to restore health, with the price dynamically adjusted based on the current health bracket.

• Paid Recovery Cost

Health Range	Unit Cost of Recovery (USDT/P)
90% -> 100%	3.5
80% -> 90%	3.0
60% -> 80%	0.9
1% -> 60%	0.3

5. Market Making and Price Stability Protocol

This protocol aims to maintain the relative stability of the SMT price through algorithmic operations funded by the reserve pool.

• Core Price Model

  1. Base Price: $P_{\text{base}} = \frac{R}{Q_{\text{mint}}}$, where R is the injected reserve amount and $Q_{\text{mint}}$ is the daily minting output.

  2. Support Price: $P_{\text{support}} = P_{\text{base}} \times (1 - \delta)$, where $\delta$ is an adjustable volatility threshold (e.g., 5%-10%). When the market price drops below the support price, a reserve-funded buyback is triggered.

  3. Market Price: Determined by secondary market trading (LP depth, volume, sentiment).

• Mechanism Flow: GUP burn rate determines minting difficulty -> difficulty affects daily SMT output -> output determines the required reserve injection to maintain the base price -> market price volatility triggers buybacks to stabilize the price.

6. Liquidity 80/20 LP Vesting Consensus Protocol (ERC7680-LLCP)

Referencing ERC7660, this protocol establishes an LP lock-up and dividend model designed for smooth token release and enhanced liquidity depth.

• Core Rules

  • 80/20 Distribution: Of the SMT minted by a user, 80% goes to a liquid wallet (instantly available), and 20% goes to an LP wallet.

  • LP Handling: The SMT in the LP wallet must be paired with an equivalent value of BNB to form an LP, which then vests linearly over 15 periods (30 days each).

  • Liquidity Enhancement: When a user adds LP, the contract automatically buys SMT from the market equivalent to 10% of the user's provided SMT amount, adding both to the liquidity pool to deepen it.

• Vesting Schedule

  • First 10 Periods: 7% unlocks in odd-numbered periods, 6% in even-numbered periods.

  • Last 5 Periods: 7% unlocks each period.

• Perpetual Dividends: If a user does not withdraw their LP after the vesting period ends, they become eligible for a share of platform trading fees (e.g., 0.3%).

7. Dual-Turbo Rewards Protocol

This is a composite rewards system designed to incentivize users from multiple angles and accelerate community consensus.

• Reward Types

  1. NFT Staking Rewards: Staking different tiers of NFTs yields varying daily amounts of GUP (APY 100%-220%).

  2. Instant USDT Rewards:

     • Referral Rewards: Two-tier referral rewards that decay over time (e.g., 10%+10% initially, then 5%+5%, and finally 2.5%+2.5%).

     • Group Buying Rewards: Successful participation in group buying yields 3%-10% in USDT/SMT rewards.

  3. SMT Referral Rewards:

     • Direct Referrals: Earn GUP equivalent to 30% of the referred user's NFT power, which can be used to mint SMT.

     • Community Weight Rewards: Earn 1%-8% in GUP rewards based on the total power of your entire community/team.

8. Minting Tax Allocation Protocol

A 9% tax is levied on all SMT minting transactions, with the revenue distributed across the ecosystem.

• Tax Allocation Breakdown

  • Burn (3%): 33.3% of the tax is sent to a black hole address for deflation.

  • DAO Governance (3%): 33.3% of the tax goes to the DAO treasury for community governance and proposal funding.

  • POS Staking Rewards (1%): 11.1% of the tax rewards users who stake SMT.

  • LP Staking Rewards (1%): 11.1% of the tax rewards liquidity providers.

  • Airdrop (1%): 11.1% of the tax is allocated for new user acquisition and ecosystem partner airdrops.

9. Dual Liquidity Pool DEX Protocol

This protocol provides robust liquidity for SMT and grants users autonomous LP management capabilities.

• DEX Support: Priority will be given to establishing liquidity pools on Uniswap V3 (WBNB/SMT) and PancakeSwap (USDT/SMT).

• Liquidity Sources

  • Automated Contract Additions: Portions of the NFT minting revenue (10%, 20%, 70%) are automatically or trigger-based used to add liquidity.

  • User-Managed Liquidity:

    • Mandatory Vesting: 20% of a user's minted SMT must be added as locked LP.

    • Voluntary Staking: Users can choose flexible or fixed-term (7/30/90/180/360 days) LP staking for varying APYs.

• IDO Allocation: Users must stake LP to qualify for IDO whitelisting, with allocation weight determined by the amount staked.