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Whitepaper / Token Classification, Rewards & Voting

Token Classification, Rewards & Voting

How price, liquidity, volume and registry status map to categories, rewards (MEGY, CorePoint, Deadcoin Bonus) and voting.

Last updated:~3 min read

Coincarnation separates valuation (price), market structure (liquidity & volume), and registry status (admin/community decisions). This section explains how these layers combine into a final category and how that category drives MEGY distribution, CorePoint, Deadcoin Bonus, and voting.

Golden rule
  • Once a token is classified as deadcoin, no further MEGY is ever distributed for new Coincarnations of that asset.
  • CorePoint from Coincarnation contribution requires USD value > 0. If the token has truly zero USD value, contribution-based CP is not awarded; only a Deadcoin Bonus may apply.
  • Past rewards are never revoked, except for blacklisted tokens where the protocol may invalidate past contributions and offer refunds.

1. Category → Reward Matrix (at time of contribution)

Category at intakeUSD ValueMEGY from poolCorePoint (Contribution)Deadcoin BonusVoting
healthy> 0✅ Yes (pool-proportional)✅ Yes (USD-weighted CP)🚫 No🚫 No (no deadcoin vote)
walking_dead (metrics)> 0✅ Yes (pool-proportional)✅ Yes (USD-weighted CP)🚫 No (until it becomes deadcoin)⚠️ Maybe – if backend marks it voteEligible=true (WD → deadcoin vote).
deadcoin (registry, USD > 0)> 0🚫 No✅ Yes (Coincarnation contribution CP)✅ Yes (Deadcoin Bonus, extra CP)🚫 No (status already final)
deadcoin (price-layer, USD = 0)= 0 / not found🚫 No🚫 No (no USD → no contrib CP)✅ Yes (Deadcoin Bonus only)⚠️ Optional – can be escalated into registry deadcoin via admin/governance.
redlistn/a🚫 No for new intake (past contributions stay as originally classified).Past CP kept as-is; no new intake CP.No new bonusBy governance only
blacklistn/a🚫 No (intake fully blocked)🚫 No – past CP can be invalidated with optional refunds.🚫 NoAdmin / governance only (risk event).

2. Metrics Layer: USD Value, Liquidity & Volume → Category

After registry overrides, the system uses the metrics layer to classify tokens. Thresholds are stored in config (e.g. healthyMinLiq, healthyMinVol, walkingDeadMinLiq, walkingDeadMinVol) and can evolve over time.

ConditionCategoryReason
Price not found or usdValue ≤ 0deadcoinPrice-layer deadcoin (no usable valuation).
No DEX signal (no pools, liq = 0, dexSource = 'none')deadcoinMetrics-layer deadcoin (reason = 'no_data').
0 < liq < walkingDeadMinLiqwalking_deadIlliquid but with some on-chain signal (reason = 'illiquid').
liq ≥ healthyMinLiq and volume ≥ healthyMinVolhealthyStrong liquidity & volume (reason = 'healthy').
walkingDeadMinLiq ≤ liq < healthyMinLiq and volume ≤ walkingDeadMinVolwalking_deadAdequate liquidity but very low activity (reason = 'low_activity').
walkingDeadMinLiq ≤ liq < healthyMinLiq and volume > walkingDeadMinVolwalking_deadBorderline case, not yet healthy (reason = 'subhealthy').

3. Registry Locks & Time

Admin and community decisions can lock a token's status (e.g. walking_dead → deadcoin). Once locked, cron and metrics reclassification respect that decision. Future contributions follow the locked category, while all past rewards remain intact (except for blacklist cases where contributions may be invalidated with refunds). This ensures that early participants are not retroactively penalized when thresholds or policies evolve.