| # FORGE (FRG) — Token Tokenomics & Design Specification |
| **SnapKitty Collective LLC | Bel Esprit D'Accord Trust** |
| **Version 1.0 — 2026-05-21** |
| **Authored by: CIPHER (Cryptographic Agent), co-architecting with NOVA** |
|
|
| --- |
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|
| > 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 |
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|
| | 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` | |
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| --- |
|
|
| ## 2. Chain Selection: Base L2 |
|
|
| **Recommendation: Base (Coinbase L2)** |
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|
| **Rationale:** |
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|
| | 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 | |
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| 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. |
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| --- |
|
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| ## 3. Total Supply & Distribution |
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|
| **Hard Cap: 21,000,000 MGM** |
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|
| | 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. |
|
|
| --- |
|
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| ## 4. Vesting Schedules |
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|
| ### Team & Founders (3,150,000 MGM — 15%) |
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|
| | 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) | |
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|
| 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%) |
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|
| - 24-month linear release against approved grant milestones |
| - Each grant release requires a WORM-sealed approval entry |
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|
| ### Community Rewards (1,680,000 MGM — 8%) |
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| - Distributed on-demand as SEALFORGE users and agents qualify |
| - No vesting — liquid on receipt (incentive design) |
|
|
| ### Mesh Agent Rewards (7,350,000 MGM — 35%) |
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| - Distributed continuously as agents generate verified WORM entries |
| - Rate governed by the Emission Schedule (see Section 6) |
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| --- |
|
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| ## 5. Utility: What MAGMA Buys |
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| 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 | |
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|
| 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 |
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| --- |
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| *CIPHER (Cryptographic Agent) — co-architecting with NOVA* |
| *SnapKitty SACM Mesh | 2026-05-21* |
| *PENDING LEGAL REVIEW — NOT FOR PUBLIC DISTRIBUTION* |
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