How 3Echo's Economics Work
Understanding liquidity/treasury mechanics, revenue splits, and redistribution rules for participation and platform utility.
This page explains the global liquidity model combining all revenue streams. For member-specific details, see Membership page. For project-specific details, see Projects page.
Important: Informational only. Tokens are designed for utility, access, and governance — not as investment instruments. Transferability and swap functionality may be limited, delayed, or unavailable under protocol rules (including during Phase 1). No secondary market, liquidity availability (including continuous liquidity), or price is guaranteed.
100% Community-Owned Tokens
No Team Tokens. No Preminted Supply. No Hidden Allocations.
Chain-Fi Labs operates as a revenue-based company. We earn through our 20% platform margin on revenue - not through token holdings. This means 100% of all tokens minted go directly to the community: creators, followers, and the ecosystem.
There is zero preminted supply allocated to founders, team members, or advisors. Every single token is minted from real revenue and distributed to users based on their contributions. This project is built for the community, owned by the community.
More usage may increase protocol revenue and the size of ecosystem distributions (subject to rules; no guarantees).
Revenue Split & Pool Funding
Every euro that enters 3Echo - whether from subscriptions or extra credit purchases - follows a transparent split designed to benefit the entire ecosystem.
The 20/80 Split
20% Platform Revenue: This is how Chain-Fi Labs earns - through revenue, not tokens. Retained for platform operations, development, and sustainability. The team receives zero tokens.
80% Community Ecosystem: 100% flows into the protocol liquidity/treasury pool under defined rules, and token issuance/distributions occur according to protocol parameters. The liquidity remains locked per protocol rules during Phase 1 to control transferability/unlock conditions; no price outcome implied.
Note: The protocol "liquidity/treasury pool" is a protocol-managed reserve used according to defined rules. Its existence does not mean tokens are redeemable on demand, or that swaps will be available at any given time/size/price.
Two-Tier Pool System: 50/50 Split
For Projects: When tokens are minted from project subscriptions (80% of subscription), they split 50/50:
- 50% → Project's internal pool - Creates the project's mini-economy, redistributed to their community
- 50% → Global distribution pool - Contributes to the ecosystem monthly distribution pool
For Individual Members: When tokens are minted from member subscriptions (80% of membership), they also split 50/50:
- 50% → Personal treasury - User's own tokens that can be used for feature access, boosting, and governance (transferability optional where supported)
- 50% → Global distribution pool - Contributes to the ecosystem monthly distribution pool
The Global Distribution Pool (Ecosystem Monthly Distribution Pool): Combines 50% from all projects + 50% from all members. This pool distributes tokens to projects based on traffic and members based on engagement across the platform.
This creates both local incentives (internal pools/personal treasuries) and platform-wide network effects (global distribution pool).
How the Two-Tier Pool System Works
Projects and members create their own token economies while contributing to the global ecosystem.
Step 1: Revenue → Global Liquidity Pool
- Projects: Pay subscription (e.g., €500/month) → 20% platform, 80% to protocol liquidity/treasury pool
- Members: Pay membership (e.g., €10/month) → 20% platform, 80% to protocol liquidity/treasury pool
- Global liquidity pool stays locked until Month 13
Step 2: Global Pool → Tokens Minted & Split
- Tokens are minted from global liquidity at current conversion rate (protocol parameter)
- 10% of tokens locked permanently
- 90% of tokens split 50/50 for both projects and members:
- Projects: 50% → internal pool, 50% → global distribution pool
- Members: 50% → personal treasury, 50% → global distribution pool
Step 3: Project Internal Pool → Project's Community
- Project's internal pool (50% of project tokens) redistributes monthly
- Each project configures their own distribution (e.g., 70% creators, 20% followers, 10% protocol reserve)
- Projects can adjust percentages to match their community model and goals
Step 4: Personal Treasury → Member Usage
- Member's personal treasury (50% of member tokens) can be used for feature access, boosting, and governance
- Members accumulate tokens monthly from personal treasury and ecosystem distributions
Step 5: Global Distribution Pool → Ecosystem Monthly Distributions
- Global distribution pool combines: 50% from all projects + 50% from all members
- This creates the ecosystem monthly distribution pool
- Distributions allocated monthly:
- Projects based on traffic and platform contribution
- Members based on engagement across the platform
- High-traffic projects and active users receive larger allocations from the ecosystem pool
Key Point: Each project has its own mini-economy (internal pool) and each member has their own personal treasury, while both contribute 50% to the global distribution pool. This creates the ecosystem monthly distribution pool that allocates tokens to projects based on traffic and members based on engagement. This creates both local incentives and platform-wide network effects.
Token Redistribution Mechanics
Every month, tokens flow from the global pool into each project's internal pool, where they are redistributed according to each project's own configuration. Projects can set their own distribution percentages to match their community model, allocating more tokens to high-quality content and genuine engagement within that project's community. Note: This is token redistribution, not liquidity redistribution - the liquidity stays locked in the global pool during the buildup phase.
Token Flow: Global Pool → Internal Pools & Global Distribution Pool
When tokens are minted from the global liquidity pool each month:
- 10% locked permanently - Removed from circulation forever
- 90% distributed - Split between project internal pools and global distribution pool
The 90% distributed tokens split as follows:
- 50% to project's internal pool - Creates the project's mini-economy
- 50% to global distribution pool - Where projects and users receive distributions based on traffic and engagement
Within each project's internal pool (50%), tokens redistribute according to the project's configuration:
- Each project configures their own distribution - Projects can set percentages for creators, followers, and protocol reserve
- Default example: 70% to creators, 20% to followers, 10% protocol reserve
- Projects can adjust these percentages to match their community model, goals, and incentive structure
- Distribution is based on Feed Scores (post performance) and Follower Scores (engagement quality)
How It Works in Practice
Each project has its own internal pool (50% of tokens) that creates a mini-economy. Each project configures their own distribution(e.g., 70% creators, 20% followers, 10% protocol reserve, or any custom split). High-performing posts receive larger token allocations from the project's internal pool. Low-quality content receives fewer tokens, effectively creating a meritocracy where quality receives larger allocations within each project's community. The other 50% flows to the global distribution pool where projects and users receive distributions based on traffic and engagement.
During buildup (Months 1-12): Projects' and members' money flows into the protocol liquidity/treasury pool under defined rules. Tokens are minted and split: Projects get 50% to internal pool + 50% to global distribution pool. Members get 50% to personal treasury + 50% to global distribution pool. The global distribution pool combines both (50% from projects + 50% from members) to create the ecosystem monthly distribution pool.
Members accumulate tokens monthly from two sources: (1) their personal treasury (50% of their tokens) which they can use for feature access, boosting, and governance, and (2) distributions from the ecosystem monthly distribution pool based on engagement across the platform. Creators who consistently produce high-quality content and users who genuinely engage receive larger allocations. These tokens are locked and transfers are disabled until Month 13 - accumulating tokens based on contribution, not speculation.
After release (Month 13+): The tokens unlock (50% immediately, 50% vesting). If transferability is enabled, protocol liquidity/treasury mechanics may facilitate swaps under defined rules; no liquidity availability or price is guaranteed. Projects receive distributions from the ecosystem monthly distribution pool based on their traffic, and members continue to receive distributions based on their engagement. Members can use their personal treasury tokens for feature access, boosting, and governance.
The Ecosystem Monthly Distribution Pool
The global distribution pool combines contributions from both projects and members to create the ecosystem monthly distribution pool.
- 50% from all projects - Each project contributes 50% of their tokens to the global distribution pool
- 50% from all members - Each member contributes 50% of their tokens to the global distribution pool
- Combined = Ecosystem Monthly Distribution Pool - Distributed monthly based on performance
Monthly Distribution:
- Projects receive distributions based on traffic and platform contribution
- Members receive distributions based on engagement across the platform
- High-traffic projects and highly-engaged members receive larger allocations from the ecosystem pool
Project-Level Configuration
Each project configures their own internal pool distribution. Projects can set custom percentages for how tokens are split between creators, followers, and protocol reserve to match their community model and goals.
- Flexible percentages: Projects choose their own split (e.g., 80% creators, 15% followers, 5% reserve, or any combination)
- Default option: 70% creators, 20% followers, 10% protocol reserve (preset available)
- Adjustable: Projects can change their distribution as their community evolves
- Custom models: Creator-focused, follower-focused, balanced - each project decides what works best
This flexibility allows each project to create the exact incentive structure that works best for their community, while still contributing to and benefiting from the ecosystem monthly distribution pool (50% of tokens).
How Liquidity/Treasury Mechanics Work
3Echo's liquidity/treasury mechanics operate differently from typical token launches.Instead of launching with minimal liquidity, the protocol accumulates liquidity according to defined rules before transferability may become available.
Phase 1: Building (Months 1-12)
Progressive Issuance Through Permanent Locking: For the first 12 months, conversion rate adjusts each month due to supply reduction. Transfers are disabled - tokens remain locked while utility features roll out.
- 80% of all revenue flows into liquidity pool (stays locked)
- Tokens are minted from that liquidity at current conversion rate (protocol parameter)
- 10% of minted tokens locked permanently each month
- Permanent locking reduces circulating supply
- Reduced supply changes conversion rate for next month
- 90% of tokens distributed to users monthly (but transfers disabled)
- Earlier months may result in different token quantities due to the issuance schedule
How the lock mechanism works: The 10% permanent lock each month changes the issuance schedule. As tokens are permanently removed from circulation, the conversion rate adjusts. This is a protocol parameter that changes the issuance schedule, not a guarantee of value or returns.
Phase 2: Controlled Release (Months 13-18)
Vesting Schedule: Tokens unlock gradually:
- 50% unlock immediately (Month 13)
- 50% vest over 6 months (Months 13-18)
Unlock Process: Vesting smooths the unlock process and reduces abrupt supply changes. Liquidity/treasury mechanics from Phase 1 are used in the unlock process according to protocol rules.
Phase 3: Sustainable Growth (Months 19+)
60/30/10 Mechanism: New revenue is split:
- 60% Issuance new tokens at current conversion rate (adds supply + liquidity)
- 30% Liquidity Operations may include buys/sells for liquidity management, subject to protocol rules
- 10% Lock tokens permanently (reduces supply)
Result: Balanced issuance and liquidity mechanics. The mechanism creates balanced issuance (supply), liquidity operations (liquidity management), and locking (supply reduction). This is a protocol operation; no price outcome is intended or guaranteed. Long-term utility focus, not speculation.
Design Principles
- No team allocation - 100% community-owned tokens
- Controlled transferability/unlock - Transfers disabled during Phase 1, gradual unlock in Phase 2
- Transparent issuance and distribution rules - All mechanics defined by protocol parameters
- Sybil resistance via identity - Chain-Fi identity verification reduces bots
- Utility-first features - Tokens designed for access, governance, and participation
Single Month Breakdown
5 Projects with €2,500 Total Monthly Input
Illustrative only; ratios and outputs may change under protocol parameters. No value/return is implied.
Technical Appendix: Illustrative Issuance Example Over 6 Months
Illustrative only. Numbers may change. Not a guarantee. This example illustrates relative issuance under one parameter set; it does not imply economic benefit.
Boost Posting & Visibility
Every post requires staking credits, and creators can boost posts with additional credits to increase visibility and potential distributions.
Base Posting Cost
Each post requires staking a minimum amount of credits. These credits aren't simply burned - they're split between a platform posting fee and the creator's Feed Pool for later redistribution.
Boost Levels
Creators can allocate additional credits on top of the base stake to boost a post. Boost credits increase the post's visibility in ranking algorithms and increase its potential share of future redistribution from the pool.
Economic Rationale
Low-quality spam becomes economically irrational because every post consumes stake. High-quality, strategic content gets more attention and boosting affects ranking signals. Redistribution follows defined scoring rules; outcomes are not guaranteed. This creates a self-regulating system where quality receives larger allocations and spam is discouraged.
Comparison: Typical Launch vs 3Echo Model
❌ Typical Token Launch
- Launch with minimal or zero liquidity
- Immediate transferability enabled
- No vesting = immediate distribution
- No scarcity mechanism
- Team allocations common
- Speculation-focused
✅ 3Echo Model
- Zero team allocation - 100% community-owned
- Accumulate liquidity according to protocol rules before transferability may become available
- 12-month buildup with 10% permanent lock each month
- Lock mechanism changes issuance schedule (protocol parameter)
- Earlier months may result in different token quantities due to issuance schedule
- 50% vesting = controlled unlock
- Long-term utility focus, not speculation
Tokenized Tasks & Content Attraction
Creators can create tokenized tasks that allocate tokens for specific engagement, attracting people to their content and building community around targeted actions.
Campaign Tasks
Create tasks that allocate tokens to users for sharing, commenting, or engaging with specific posts or campaigns.
Engagement Challenges
Set up challenges that incentivize meaningful interactions, building quality engagement over quantity.
Community Building
Use tasks to attract new followers, encourage cross-pollination, and grow your community organically.
Task distributions are integrated with the pool system, meaning successful tasks contribute to both creator and follower allocations during redistribution cycles.
Growing the Vetted Chain-Fi Community
Chain-Fi identity controls reduce bots and sybil behavior. This creates a vetted community where interactions come from verified users. Certain actions and higher tiers may require additional verification, including KYC.
Identity Verification
Chain-Fi identity verification ensures real users and reduces fraud. Certain actions and higher tiers may require additional verification, including KYC.
Reputation Scoring
Reputation is based on verified identity, engagement patterns, and cross-platform behavior within the Chain-Fi ecosystem.
Quality Over Quantity
High-reputation users' engagement weighs more in scoring, allocating more tokens to genuine contributors over spam accounts.
Network Effects
As more projects use Chain-Fi, the 3Echo community grows organically, with shared identity and reputation across the ecosystem.
This vetted community model means that when you engage on 3Echo, you're interacting with real people who have verified identities. This creates trust, reduces spam, and ensures that distributions go to genuine participants.
Expanding Reach Through Chain-Fi Ecosystem
3Echo is part of the broader Chain-Fi ecosystem, which means your content can reach beyond just the platform itself.
Open Feed API
Feeds can be exposed through APIs, making them visible to AI agents, search engines, and partner platforms. This increases discoverability and reach.
API Monetization
Revenue from API usage follows the same 20/80 split, with 80% flowing back into ecosystem pools. API consumers pay for access, and creators benefit from that revenue.
Cross-Platform Integration
Other projects building on Chain-Fi can integrate 3Echo feeds, creating network effects and expanding your reach across the entire Chain-Fi ecosystem.
Shared Infrastructure
Shared identity, reputation, and wallet infrastructure means users can seamlessly move between Chain-Fi-powered platforms, bringing their reputation and engagement history with them.
Phased Rollout & Milestone-Based Activation
3Echo launches features progressively based on community growth milestones. This ensures sustainable economics and protects early adopters. The point system is available now, while tokenization, liquidity pools, and governance unlock as the community reaches certain thresholds.
For detailed information about the phased rollout, milestone criteria, feature timeline, and getting started guide, see our comprehensive Roadmap page.
Point System: Available Now
The point system starts immediately. All users can earn points from day one through engagement, regardless of tier or milestone status.
Tokenization & Liquidity: Milestone-Based
Tokenization and liquidity pools activate when the community reaches certain size thresholds. This ensures sufficient liquidity and engagement before full tokenization, protecting early users and ensuring sustainable economics.
Governance: Progressive Rollout
Governance programs are added as the community grows, starting with point-weighted voting systems and evolving to include reputation-weighted voting. All governance is powered by the Chain-Fi ecosystem. See the Governance page for detailed information.
What Makes 3Echo Stand Out
100% Community-Owned
Zero team allocation. No preminted supply. Revenue-based company model.
Web2 UX, Web3 Ownership
Familiar social experience with real ownership and verifiable participation.
Performance-Based Redistribution
Redistribution follows defined scoring rules based on content performance; outcomes are not guaranteed.
Vetted Community
Chain-Fi identity verification reduces bots and sybil attacks. Higher tiers may require additional verification/KYC.
Transparent Redistribution
Clear rules, auditable on-chain, with transparent pool mechanics.
Ecosystem Integration
Part of the larger Chain-Fi network with shared identity and reputation.
API-First Approach
Machine-readable, AI-friendly, partner-ready feeds.
Liquidity
The liquidity model powering the ecosystem.
