The Standard Reserve mints 1000 Genesis Charter NFTs

The Standard Reserve has completed the mint of 1,000 genesis charter NFTs, raising 583.59 ETH, or roughly $1.47 million at Ether prices near the end of the sale. The launch gives charter holders a claim on future recorded STANDARD token balances, while placing immediate pressure on each holder’s share of daily issuance as new “branches” enter the network.

The 1,000 charters were split between a 601-wallet whitelist round and a 399-item public Dutch auction. Whitelist participants paid 0.15 ETH per charter, contributing 90.15 ETH in total, according to the protocol’s mint records. The public auction raised about 493.45 ETH, with most purchases filling between 1.23 ETH and 1.25 ETH. That placed the public-sale average near 8.24 times the whitelist price.

Each charter began with one branch, an account-like unit that receives recorded STANDARD output. The protocol then auctioned 100 expansion licenses on its first day, creating 100 further branches and raising the total to 1,100. That expansion immediately reduced the daily allocation assigned to each branch under the current formula.

Branch expansion cuts individual output

STANDARD has a hard supply cap of 1 billion tokens. The protocol says 100 million STANDARD was minted at genesis and placed into protocol-owned liquidity, while 900 million remains available for later issuance.

The system’s base issuance is 700,000 STANDARD a day. Rather than sending those tokens directly to wallets, the protocol records each branch’s accrued balance internally. A holder must close branches to convert part of that recorded balance into minted, transferable STANDARD.

With 1,100 active branches and the issuance multiplier set at 1, each branch records about 636.36 STANDARD per day, based on the 700,000-token daily base divided evenly across the network. Over a three-day epoch, the protocol’s fixed adjustment period, that would equal about 1,909.09 STANDARD if the multiplier and branch count remain unchanged.

The first 100 new branches reduced the per-branch daily allocation from 700 STANDARD, when there were 1,000 branches, to 636.36 STANDARD. Each branch’s share of the daily base fell from 0.1% to 0.0909%, a decline of roughly 9.1%.

That dilution effect is central to the model. If the protocol added 100 branches per day until reaching the stated 2,000-branch upper limit, each branch would receive 350 STANDARD daily at a multiplier of 1. That is about 55% of the 636.36 STANDARD rate at 1,100 branches.

The white paper permits the protocol to adjust the daily supply of expansion licenses within its rules. Expansion pricing, therefore, will determine how easily participants can add new branches and how quickly the daily issuance split becomes more competitive for existing charter holders.

Expansion licenses were paid for in STANDARD

The first auction of 100 expansion licenses started at 12,000 STANDARD each and closed at 11,888.34 STANDARD, according to on-chain auction data. The average fill was about 11,927.71 STANDARD, producing roughly 1.19 million STANDARD slated for burning.

At the current per-branch recording rate of 636.36 STANDARD a day, the average expansion license cost was equivalent to about 18.74 days of gross output from one branch. That comparison illustrates the protocol’s intended trade-off: a participant can use accumulated STANDARD to establish additional issuance capacity, but every added branch also lowers the allocation received by all active branches.

The protocol’s multiplier, known as m, adds a second variable to the issuance calculation. It starts at 1 and can move between 0.2 and 1.25. At 1,100 branches, a branch records about 795.45 STANDARD per day at the 1.25 ceiling and 127.27 STANDARD daily at the 0.2 floor.

Epochs last three days. Under the published policy rules, a negative net-flow epoch reduces m by 0.15, while a 0.1 increase requires consecutive positive signals. The system ties those signals to net Ether flows in its Uniswap v4 pool, using the pool’s recorded inflows and outflows to adjust subsequent issuance.

This design makes the token’s daily reward rate sensitive to both network expansion and pool activity. A growing branch count reduces the share assigned to each branch, while the multiplier can either soften or deepen that decline depending on the protocol’s Ether-flow measurement.

Claims require permanent branch closures

Charter holders do not receive transferable STANDARD simply by accumulating an internal balance. The protocol requires them to close branches. Closing one of 10 branches permits a holder to claim one-tenth of the recorded balance, subject to an exit fee that ranges from 2% to 60% under the protocol rules.

A closed branch is permanently removed and stops receiving new issuance. If a holder closes the final branch attached to a charter, the charter itself is destroyed. Half of the exit fee is permanently removed from supply, while the other half is assigned in the next epoch to accounts that remain active.

The arrangement gives the protocol a retention mechanism that is more restrictive than ordinary staking or lock-up designs. Participants can access accrued STANDARD, but doing so reduces their future issuance capacity. Exit fees also rise with the conditions specified by the system, making the cost of converting recorded balances dependent on network activity.

Genesis charters remain soulbound under the current contract state, meaning holders cannot transfer them. A marketplace page displayed a floor of 30,000 USDG and a top offer near 7,500 USDG, though those listings cannot result in completed charter transfers while the transfer function remains disabled.

Treasury routing links fees to protocol reserves

The protocol’s published parameters direct 70% of recurring Ether inflows, including transaction taxes and future charter-auction proceeds, to an active treasury. Routing depends on whether net flows are directed toward expansion or contraction treasuries.

Another 15% is designated for protocol-owned liquidity, with half of that portion converted into STANDARD to form trading pairs. The remaining 15% is assigned to the team.

STANDARD began trading after liquidity was added, accompanied by a temporary anti-sniping tax on purchases and sales. The tax began at 90% and declined over time. On-chain settings showed a 2% buy tax and a 3% sell tax by 10:00 Beijing time on Sept. 15.

The launch establishes a system where charter ownership, branch expansion, pool flows and token claims are closely connected. Charter holders seeking higher future output may want more branches, yet every successful expansion lowers the base allocation per branch. Meanwhile, claiming accumulated balances requires permanently giving up part of the position that generates them.