Tokenomics

Core Token: $BAG

Overview

The BAG token is the native token of the Based Agents ecosystem, powering the entire protocol through three core functions:

1. Agent Token Creation & Trading

2. Protocol Governance

3. Value Accrual through Protocol Fees

Total Supply and Distribution

• Total Supply: 1,000,000,000 BAG (1B tokens)

Category	Allocation	Amount	Notes
Genesis Agent	35%	350M	Initially managed by Community Multisig
Liquidity Providers	35%	350M
└ Initial LPs/Team	29%	290M	subject to vesting & Asset transfer restrictions apply
└ Secondary LPs	6%	60M	includes public liqiidty rewards program
AI3 Agent	30%	300M	50% of AI3 tokens distributed to BAG/ETH LPs

For detailed information about the Genesis Agent and AI3 Agent, please refer to Ecosystem Agents.

Economic Model

Agent Token Creation

• New Agent tokens are launched through the AICO (AI Coin Offering) process

• Each launch requires BAG tokens for:

  • Creation fee of 100 BAG paid to Protocol Treasury

  • Token purchases through the bonding curve

  • Transaction fees and graduation fees

  • Initial liquidity provision

Bonding Curve Mechanism

• Smart contract automatically prices tokens based on supply and demand

• Uses formula y = A*e^(Bx) for predictable price discovery

• Initial price: 1.06 BAG

• Final price at graduation: ~4,634.21 BAG

• Total BAG required for graduation: 42,000 BAG

Market Graduation

When an Agent token accumulates 42,000 BAG through the bonding curve:

1. Graduation fee of 525 BAG is paid

2. Automatic Uniswap V2 pool creation

3. Initial liquidity provision with collected BAG

4. Transition from bonding curve to open market trading

Protocol Treasury Management

• Protocol Treasury receives 25% of all transaction fees

• Genesis Agent can selectively burn BAG tokens from Protocol Treasury

• Burning schedule and amounts determined by Genesis Agent

• Creates deflationary pressure based on protocol usage

• Helps maintain long-term value alignment

Value Accrual Mechanisms

1. Agent Creation Fee

• Initial Amount: 100 BAG

• Recipient: Protocol Treasury

• Timing: One-time fee at Agent token creation

• Purpose: Ensures quality Agent launches and supports protocol development

• Upgradable: Yes, through protocol governance

2. Transaction Fees

All Agent token transactions incur a 1% fee in BAG, distributed to:

• Agent Wallet: 50% (5000 BPS)

• Protocol Treasury: 25% (2500 BPS)

• Platform Referrer: 10% (1000 BPS)

• Order Referrer: 15% (1500 BPS)

Fee Distribution Explained

Agent Wallet (50%)

• Direct revenue to the Agent's Wallet

• Used for Agent operations and development

• Paid automatically on every transaction

Protocol Treasury (25%)

• Funds protocol development and maintenance

• Supports ecosystem growth initiatives

• Used for protocol upgrades and improvements

Platform Referrer (10%) The Platform Referrer fee incentivizes the development of any integration that enables users to interact with Based Agents:

• Any developer or project can integrate with Based Agents by becoming a Platform Referrer

• Based Agents.co is just one reference implementation

• Integration possibilities include:

  • Trading interfaces (web, mobile, desktop)

  • Trading APIs and SDKs

  • AI Agents that facilitate trading

  • Portfolio management tools

  • Trading bots and automation systems

  • Analytics and market data platforms

  • Browser extensions

  • Telegram/Discord bots

  • DeFi aggregators

  • Cross-chain bridges

• Platform Referrers earn 10% of all transaction fees generated through their integration

• The referral address is set when the Agent token is created through their integration

• Revenue is earned perpetually from all future trades through that integration

• This creates an ecosystem of complementary tools and services around Based Agents

Order Referrer (15%) The Order Referrer system enables community-driven growth through a referral program:

• Anyone can become an Order Referrer by sharing their referral address

• Referrers earn 15% of the transaction fee when:

  • A user makes any trade using their referral code

  • All subsequent trades by that user will generate referral fees

• Example:

  • On a 1000 BAG trade (1% fee = 10 BAG):

    • Referrer earns 1.5 BAG (15% of fee)

    • This applies to all future trades by the referred user

• Each trade specifies the referrer address

• If no referrer is specified, the fee goes to Protocol Treasury

3. Graduation Fees

525 BAG fee upon market graduation, following the same distribution as transaction fees

4. Protocol Growth

• Each new Agent token launch increases BAG utility

• Successful Agent tokens drive more trading volume and fees

• Network effects strengthen the BAG token ecosystem

Economic Incentives

For Token Creators

• Revenue share from all token transactions (50% of fees)

• Control over token parameters and governance

• Ability to build and monetize AI Agent communities

For Early Supporters

• Access to Agent tokens at bonding curve prices

• Potential for value appreciation through graduation process

• Participation in Agent governance

For Traders

• Liquid markets through bonding curve pre-graduation

• Automated market making via Uniswap post-graduation

• Multiple trading opportunities across market phases

Agent Token Specification

Market Phases

1. Primary Market (Bonding Curve)

   • Supply: 500M tokens

   • Price: Determined by bonding curve

   • Trading: Against BAG tokens

2. Graduation

   • Requirement: 42,000 BAG accumulated

   • Fee: 525 BAG

   • Action: Uniswap V2 pool creation

3. Secondary Market (Uniswap)

   • Supply: 200M tokens

   • Price: Market determined

   • Trading: Open market on Uniswap V2

Supply Parameters

• Maximum Total Supply: 1,000,000,000 tokens (1B)

• Primary Market Supply: 500,000,000 tokens (500M)

• Secondary Market Supply: 200,000,000 tokens (200M)

• Agent Allocation: 300,000,000 tokens (300M)