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**SnapKitty Collective LLC | Bel Esprit D'Accord Trust**
**Version 1.0 — 2026-05-21**
**Authored by: CIPHER (Cryptographic Agent), co-architecting with NOVA**
---
> REGULATORY DISCLAIMER
> FORGE (FRG) is a utility token designed for internal mesh participation within the
> SnapKitty SACM ecosystem. It is NOT a security, investment contract, share, bond,
> or any financial instrument regulated under the Securities Act of 1933, the Securities
> Exchange Act of 1934, or applicable state or foreign securities laws. No public sale
> has occurred or is being offered by this document. All token distributions, public
> offerings, or exchange listings are PENDING LEGAL REVIEW by Jessica Lee Westerhoff,
> CPA, and qualified securities counsel before any execution. This document is an
> internal design specification only.
>
> SnapKitty Collective LLC — EIN 41-5105572
> Bel Esprit D'Accord Trust — EIN 41-6630640
---
## 1. Token Identity
| Field | Value |
|--------------|---------------------------------------------------------|
| Name | MAGMA |
| Symbol | MGM |
| Decimals | 18 |
| Hard Cap | 21,000,000 MGM (one billion) |
| Standard | ERC-20 (OpenZeppelin 5.x) |
| Chain | Base L2 (Coinbase Layer 2, OP Stack) |
| Contract | `contracts/MAGMA.sol` |
---
## 2. Chain Selection: Base L2
**Recommendation: Base (Coinbase L2)**
**Rationale:**
| Factor | Base | Solana | Polygon PoS |
|---------------------|-------------------------------|------------------------------|---------------------------|
| EVM compatibility | Full — direct OpenZeppelin | No — Rust/Anchor required | Full |
| Gas costs | ~$0.001–0.01/tx (OP Stack) | ~$0.00025/tx | ~$0.001–0.005/tx |
| Institutional trust | Coinbase-backed, regulated | Permissionless, VC-heavy | Polygon Labs |
| Compliance posture | Coinbase KYC/AML ecosystem | Complex for US compliance | Moderate |
| Ecosystem liquidity | Coinbase wallet, USDC native | Deep but fragmented | Good |
| WORM bridge | Ethereum L1 finality via OP | Separate bridge risk | Checkpoint validators |
| Agent tooling | Ethers.js / Viem / Foundry | Anchor — separate dev stack | Same as Base |
Base is chosen because:
1. The SACM stack is TypeScript/Node — EVM tooling (Viem, Hardhat, Ethers) integrates directly.
2. Coinbase's regulatory standing reduces compliance friction for a CPA-led entity.
3. USDC is native on Base — treasury operations are straightforward.
4. OP Stack gives L1 Ethereum security with L2 throughput for agent-volume transactions.
5. Full OpenZeppelin 5.x compatibility with no chain-specific rewrites.
---
## 3. Total Supply & Distribution
**Hard Cap: 21,000,000 MGM**
| Allocation | Percentage | MGM Amount | Purpose |
|--------------------|------------|-----------------|--------------------------------------------------------------|
| Mesh Agent Rewards | 35% | 7,350,000 | Earned by SACM agents for WORM-verified work |
| Treasury | 25% | 5,250,000 | Operations, grants, liquidity provisioning, future programs |
| Team & Founders | 15% | 3,150,000 | Jessica Westerhoff & Ahmad — 50/50 per ownership structure |
| Ecosystem Fund | 12% | 2,520,000 | Partnerships, integrations, developer grants |
| Community Rewards | 8% | 1,680,000 | SEALFORGE users, early adopters, referral programs |
| Reserve (Burn) | 5% | 1,050,000 | Deflationary reserve — burned on milestones |
**Total: 100% / 21,000,000 MGM**
No tokens are minted at contract deployment. All distributions are executed by the
Treasury multisig via WORM-gated `wormMint()` calls. This ensures every token in
existence corresponds to a sealed, auditable WORM ledger entry.
---
## 4. Vesting Schedules
### Team & Founders (3,150,000 MGM — 15%)
| Tranche | Amount | Release Condition |
|------------|---------------|---------------------------------------------|
| Cliff | 0 | No tokens for first 12 months post-launch |
| Month 12 | 15,000,000 | 10% unlocks at 12-month cliff |
| Month 13–36| 5,625,000/mo | Monthly linear vest over 24 months |
| Total vest | 24 months post-cliff (36 months total) |
Both founders (Jessica Westerhoff, Ahmad) split 50/50 in accordance with the
Bel Esprit D'Accord Trust ownership structure.
### Treasury (5,250,000 MGM — 25%)
- Controlled by Gnosis Safe multisig (3-of-5 signers minimum)
- No vesting cliff — immediately usable for operational minting
- Governed by quarterly spending proposals voted on by MGM holders
### Ecosystem Fund (2,520,000 MGM — 12%)
- 24-month linear release against approved grant milestones
- Each grant release requires a WORM-sealed approval entry
### Community Rewards (1,680,000 MGM — 8%)
- Distributed on-demand as SEALFORGE users and agents qualify
- No vesting — liquid on receipt (incentive design)
### Mesh Agent Rewards (7,350,000 MGM — 35%)
- Distributed continuously as agents generate verified WORM entries
- Rate governed by the Emission Schedule (see Section 6)
---
## 5. Utility: What MAGMA Buys
MAGMA is the exclusive medium of exchange within the SnapKitty ecosystem.
### SEALFORGE Access
| Tier | USD Price | MGM Burn (Equivalent) | What Burns |
|-----------|-----------|-------------------------|-----------------------------|
| Basic | $49/mo | 490 MGM/mo | Burned on subscription renewal |
| Pro | $249/mo | 2,490 MGM/mo | Burned on subscription renewal |
| Architect | $2,000+ | 20,000+ MGM | Burned on tier activation |
MGM burn rates are pegged to USD value at time of transaction using a Chainlink
price feed (if/when MGM is listed) or treasury-set rate pre-listing.
### Mesh Access
- Agent compute slot reservation: 100 MGM/slot/epoch
- Priority queue for task routing: 500 MGM/boost
- API rate-limit increases: 50 MGM/tier upgrade
### Governance
- 1 MGM = 1 governance vote
- Voting cap: 1% of MAX_SUPPLY (10,000,000 MGM) per address
- Proposals require 1,000,000 MGM staked to submit
- Quorum: 5% of circulating supply
### Premium Features
- WORM ledger export (archival): 200 MGM/export
- Custom HMAC signing keys: 1,000 MGM/key
- Agent persona customization: 250–5,000 MGM
- White-label SEALFORGE instances: 50,000 MGM
---
## 6. Earning Model
### Agents (SACM Mesh)
SACM agents earn MAGMA automatically when their actions are sealed into the WORM chain.
| Work Type | MGM Per Event |
|------------------------------|---------------|
| Task completion (standard) | 10 MGM |
| Knowledge ingestion (FSM) | 25 MGM |
| Cross-agent coordination | 50 MGM |
| Anomaly detection / alert | 100 MGM |
| Governance vote participation| 5 MGM |
The Treasury multisig submits `wormMint()` calls daily in batch, using the HMAC-SHA256
hash of each WORM entry as the nonce. No entry can be double-spent.
### Human Users
| Activity | MGM Earned |
|---------------------------------|----------------|
| SEALFORGE onboarding | 100 MGM |
| First seal creation | 50 MGM |
| Referral (per converted user) | 200 MGM |
| Bug report (verified) | 500–5,000 MGM |
| Governance proposal (passed) | 1,000 MGM |
---
## 7. Deflationary Mechanics
MAGMA is designed to be deflationary over time:
1. **SEALFORGE Burns** — every subscription renewal and tier upgrade burns MGM permanently.
2. **Reserve Burns** — 1,050,000 MGM reserve is burned against milestones
($500k ARR, $1M ARR, $3M ARR).
3. **Governance Burns** — failed proposals burn 50% of the staked submission bond.
4. **Hard Cap** — once 21,000,000 MGM are minted, no further minting is possible.
At $3M ARR (the revenue target), estimated annual burn from SEALFORGE subscriptions:
- Assume 5,000 Basic, 500 Pro, 50 Architect users
- Annual burn: (5,000 × 5,880) + (500 × 29,880) + (50 × 240,000)
- = 29,400,000 + 14,940,000 + 12,000,000 = **~56,340,000 MGM/year**
- At that emission rate, circulating supply contracts meaningfully within 3 years.
---
## 8. Governance Architecture
MAGMA governance uses a two-phase model:
**Phase 1 (Pre-DAO, current):**
- Architect multisig controls all upgrades and emergency functions
- MGM holders can submit non-binding sentiment votes
- Treasury operates under CPA oversight (Jessica Lee Westerhoff)
**Phase 2 (Post-$1M ARR):**
- On-chain Governor.sol module deployed
- `governanceWeight()` integrated as vote oracle
- 1% cap enforced per address
- Timelock: 48-hour delay on all passed proposals
---
## 9. Security Architecture
| Layer | Mechanism |
|---------------------|---------------------------------------------------|
| WORM nonce | `wormEntryMinted[bytes32]` mapping prevents replay |
| Role separation | ARCHITECT / MINTER / BURNER — no single key rules |
| Emergency pause | `emergencyPause(reason)` — Architect only |
| Hard cap | `require(totalSupply() + amount <= MAX_SUPPLY)` |
| Reentrancy guard | OpenZeppelin `ReentrancyGuard` on mint/burn |
| Multisig | Gnosis Safe 3-of-5 for Treasury/Architect roles |
| Governance cap | `governanceWeight()` caps at 1% MAX_SUPPLY |
---
## 10. Deployment Checklist
- [ ] Deploy Gnosis Safe 3-of-5 multisig for Treasury
- [ ] Deploy Gnosis Safe 3-of-5 multisig for Architect
- [ ] Deploy `MAGMA.sol` on Base Sepolia testnet
- [ ] Verify contract on Basescan
- [ ] Run WORM genesis mint (team/ecosystem allocations)
- [ ] Grant BURNER_ROLE to SEALFORGE upgrade contract address
- [ ] Legal review completed by Jessica Lee Westerhoff, CPA
- [ ] Qualified securities counsel sign-off before any public distribution
- [ ] Audit by external Solidity auditor (Certik, Trail of Bits, or equivalent)
- [ ] Deploy to Base mainnet
---
*CIPHER (Cryptographic Agent) — co-architecting with NOVA*
*SnapKitty SACM Mesh | 2026-05-21*
*PENDING LEGAL REVIEW — NOT FOR PUBLIC DISTRIBUTION*
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