VEIL Token Economics: Design Principles

The VEIL token is the economic engine of the network. This post covers the design principles behind the token economy — not as marketing material, but as engineering documentation.

Fixed Supply

Fixed supply at genesis, no hidden mint paths. 80-90% locked in a VM-enforced chain-owned liquidity (COL) vault with deterministic epoch-based releases capped at 0.15% per epoch. Launch float is intentionally low (3-5%). There is no fast unlock path.

Fee Routing

All protocol revenue routes through a 70/20/10 split: 70% to market depth (MSRB), 20% to buyback-and-make, 10% to operations. This is enforced at the VM level, not by governance vote.

VAI Stablecoin

VAI is designed as a native stablecoin backed by exogenous reserves with on-chain solvency checks enforced at consensus. VAI risk controls (G5) are implemented but production validation remains pending. No stability or peg claims should be assumed until G5 is closed.

Current Status

Tokenomics and treasury controls (G4) are implemented in design/runtime paths. Production parameter freeze is pending. No token distribution event has occurred or been scheduled.