# HardwarePlay Tokenomics Model v1

Version: 1.0-draft
Date: 2026-04-12
Scope: Operational model for allocation, buyback, investor feed, and treasury reporting

## Legal Notice
This model is an operational and financial design draft. It is not legal, tax, accounting, or investment advice. Final implementation must be reviewed by Dutch legal and tax counsel before publication and launch.

## 1. Model Objective
Create a repeatable and auditable method to:
- calculate distributable margin per transaction category,
- route percentage-based allocations to treasury buckets,
- fund buyback and investor-support mechanisms from net economics,
- keep VAT and direct cost treatment compliant and transparent.

## 2. Core Model Principle
Always distribute from margin, never from gross inflow.

### 2.1 Primary formula
For each event type e in period t:

DistributableBase(e,t) = RevenueExVAT(e,t) - DirectCost(e,t) - RefundReserve(e,t)

AllocatedPool(e,t) = DistributableBase(e,t) * DistributionRate(e)

BucketAmount(e,t,b) = AllocatedPool(e,t) * BucketWeight(e,b)

Constraint:
- Sum of BucketWeight(e,b) across all buckets must equal 100%.

## 3. Transaction Event Catalog
Recommended launch event types:
- TAG_PRIMARY_SALE
- NFT_SECONDARY_FEE
- AD_SLOT_PUBLIC_SALE
- PAYMENT_OPERATOR_FLOW
- SERVICE_SUBSCRIPTION
- API_AUTOMATION_FEE

Optional additional types:
- BRAND_PARTNERSHIP_SETTLEMENT
- CAMPAIGN_PERFORMANCE_BONUS

## 4. Bucket Architecture
Standard buckets:
- OPS: platform operations and maintenance
- RESERVE: protocol and risk buffer
- GROWTH: commercial expansion and ecosystem growth
- INVESTOR_FEED: investor token support pool
- BUYBACK: periodic buyback budget

## 5. Suggested Start Parameters
These are proposed defaults and should be validated by legal/fiscal review.

### 5.1 Distribution rates by event
- TAG_PRIMARY_SALE: 35%
- NFT_SECONDARY_FEE: 85%
- AD_SLOT_PUBLIC_SALE: 45%
- PAYMENT_OPERATOR_FLOW: 25%
- SERVICE_SUBSCRIPTION: 40%
- API_AUTOMATION_FEE: 45%

### 5.2 Bucket weights by event
TAG_PRIMARY_SALE:
- OPS 35%
- RESERVE 20%
- GROWTH 10%
- INVESTOR_FEED 20%
- BUYBACK 15%

NFT_SECONDARY_FEE:
- OPS 20%
- RESERVE 10%
- GROWTH 10%
- INVESTOR_FEED 35%
- BUYBACK 25%

AD_SLOT_PUBLIC_SALE:
- OPS 20%
- RESERVE 15%
- GROWTH 10%
- INVESTOR_FEED 30%
- BUYBACK 25%

PAYMENT_OPERATOR_FLOW:
- OPS 40%
- RESERVE 20%
- GROWTH 5%
- INVESTOR_FEED 20%
- BUYBACK 15%

SERVICE_SUBSCRIPTION:
- OPS 30%
- RESERVE 20%
- GROWTH 10%
- INVESTOR_FEED 25%
- BUYBACK 15%

API_AUTOMATION_FEE:
- OPS 25%
- RESERVE 15%
- GROWTH 15%
- INVESTOR_FEED 25%
- BUYBACK 20%

## 6. Stable-Value Token, Investor Token, and NFT Linkage
### 6.1 Roles
- HPS (working name): settlement and utility rail in platform transactions.
- HPI (working name): investor support token fed by INVESTOR_FEED bucket.
- HP-NFT: ownership and rights layer linked to marketplace activity.

### 6.2 Economic linkage
- HP-NFT trading and ad-space sales generate event flows.
- Event flows create DistributableBase.
- DistributableBase funds BUYBACK and INVESTOR_FEED according to configured rates.
- HPS improves transaction consistency; HPI is fed through policy-based allocation.

## 7. VAT and Dutch Tax Treatment Framework (Operational)
### 7.1 Recommended order of treatment
1. Classify transaction type.
2. Determine taxable base and VAT treatment.
3. Remove VAT from gross to get RevenueExVAT.
4. Book direct costs.
5. Book refund reserve where applicable.
6. Calculate DistributableBase.
7. Apply distribution and bucket allocations.

### 7.2 Practical controls
- Never compute investor/buyback allocations on VAT-inclusive amounts.
- Separate ledger codes for each event type.
- Monthly reconciliation between payment processors, marketplace logs, and accounting entries.

## 8. Buyback Policy Template
Suggested policy skeleton:
- Cadence: monthly
- Funding source: BUYBACK bucket only
- Execution window: fixed business days
- Max spend cap per period: [insert cap]
- Token destination after buyback: [treasury hold or burn policy]
- Disclosure: period report including source amounts and execution totals

## 9. Investor Feed Policy Template
Suggested policy skeleton:
- Funding source: INVESTOR_FEED bucket only
- Conversion logic: [direct transfer, treasury hold, market operation]
- Publication cadence: monthly report
- No guarantee statement mandatory in all public communication

## 10. Monthly Waterfall Example
Illustrative numbers only.

Inputs (month M):
- TAG_PRIMARY_SALE RevenueExVAT: 100,000
- DirectCost: 58,000
- RefundReserve: 2,000
- DistributableBase: 40,000
- DistributionRate: 35%
- AllocatedPool: 14,000

TAG_PRIMARY_SALE bucket output:
- OPS 4,900
- RESERVE 2,800
- GROWTH 1,400
- INVESTOR_FEED 2,800
- BUYBACK 2,100

Repeat this for each event type and sum per bucket:
- Total OPS
- Total RESERVE
- Total GROWTH
- Total INVESTOR_FEED
- Total BUYBACK

## 11. KPI Layer
Track at least:
- Distributable margin ratio by event
- Investor feed coverage ratio
- Buyback funding ratio
- Marketplace contribution share
- NFT turnover versus ad-space turnover
- Cost-to-distribution ratio

## 12. Governance and Change Rules
Parameter changes require:
- documented proposal,
- internal financial approval,
- legal/tax review,
- version increment,
- publication date before effect.

## 13. Compliance Guardrails (Public Communication)
Always include:
- no guaranteed returns,
- no investment advice,
- token utility and risk disclosure,
- rights and limitations by asset class.

Avoid statements that imply guaranteed profit from HPI.

## 14. Implementation Roadmap (90 Days)
Phase 1 (Weeks 1-2):
- freeze event taxonomy,
- finalize accounting mappings,
- draft legal wording.

Phase 2 (Weeks 3-5):
- implement event-level allocation engine,
- generate monthly treasury reports.

Phase 3 (Weeks 6-8):
- dry run with historical sample data,
- compare expected versus actual margins.

Phase 4 (Weeks 9-12):
- legal/tax sign-off,
- publish public summary,
- activate buyback and investor feed policy.

## 15. Required Finalization Inputs
Before going live, confirm:
- final token names,
- final legal rights per token,
- final distribution rates by event,
- VAT treatment matrix per transaction type,
- buyback destination policy,
- investor feed operational mechanics,
- jurisdiction-specific legal text.

## 16. Linked Template
Use this file for monthly calculations and reporting:
- public/docs/tokenomics-model-v1-template.csv