Token Economics
$MAGMA is the protocol's utility and governance token. It amplifies returns within MAGMA but does not replace the Conviction Score — the two systems are additive. $MAGMA launches only after the protocol demonstrates product-market fit on mainnet.
$MAGMA has not launched. The figures on this page are the planned economics as defined in the protocol sources; some operational parameters (for example the exact buyback cadence beyond "weekly") are intentionally described qualitatively where the sources do not fix a precise value. See TGE conditions for launch gating.
Protocol revenue
MAGMA generates revenue from several streams. The Conviction Score multipliers and the Forge pool shares referenced below are detailed on their own pages.
| Stream | Rate | Activation |
|---|---|---|
| Platform fee on TRUE resolution | Reputation-tiered on realized yield: 2.5% (Initiate) → 0% (Volcanic) | Launch |
| FALSE resolution — forfeited yield capture | Incorrect backers keep 100% of principal, forfeiting only realized yield; the capture routes Core 5% + Echo remainder (false_forge_bps = 0) | Launch |
| DeFi yield spread | Slight spread below raw protocol APY | Launch |
| Narrative publish fee | ~5 SOL per narrative (NARRATIVE_PUBLISH_FEE_SOL; ~80% creator backing stake, ~20% treasury) | Launch |
| Binary market creation fee | ~5 SOL per native market (BINARY_MARKET_FEE_SOL, defaults to the publish fee) | Launch |
| SideShift commission | 0.5% of swaps | Launch |
| $MAGMA staker revenue share | 40% of treasury monthly | Post-TGE |
| Oracle infrastructure licensing | B2B fee | Post-Beta |
The platform fee is 0% for Volcanic-tier wallets; on those resolutions the protocol's revenue
comes from overall backing volume, not individual fees. The full per-tier platform-fee schedule
(2.5% Initiate → 0% Volcanic, TIER_FEE_BPS = [250,200,150,150,100,0]) is on
Conviction Score. The fee is a rate on principal but is
drawn from realized yield and capped at it, so it never touches principal.
$MAGMA supply and allocation
Total supply: 500,000,000 $MAGMA — fixed, no inflation.
| Allocation | Percentage | Amount | Notes |
|---|---|---|---|
| Community ICO (futard.io) | 35% | 175,000,000 | Immediate unlock |
| Protocol Treasury | 25% | 125,000,000 | MetaDAO futarchy governed |
| Team / MAGMA Corp | 18% | 90,000,000 | Performance-gated vesting |
| Ecosystem & Partners | 12% | 60,000,000 | Pyth, Arcium, Helius, Fogo |
| Protocol Liquidity | 6% | 30,000,000 | Meteora DLMM and Fogo DEX |
| Advisors | 4% | 20,000,000 | 6-month cliff, 18-month vest |
Team vesting — performance gated
Team tokens do not vest on a schedule; they vest on performance. There are five gates, each releasing 18,000,000 $MAGMA (20% of the team allocation):
| Gate | Price multiplier | Target price | Requirement |
|---|---|---|---|
| 1 | 2x ICO | $0.0571 | 90-day TWAP ≥ target |
| 2 | 4x ICO | $0.1143 | Previous gate claimed |
| 3 | 8x ICO | $0.2286 | Sequential only |
| 4 | 16x ICO | $0.4571 | Sequential only |
| 5 | 32x ICO | $0.9143 | Sequential only |
The TWAP uses a Pyth $MAGMA/USD price feed with Switchboard fallback, computed as a 90-day
rolling average — a short-term pump does not unlock team tokens. The magma_team_vesting Anchor
program enforces every condition on-chain, and no one can override it. A mandatory 90-day floor
period applies after TGE: no gate fires in the first 90 days regardless of price.
$MAGMA staking tiers
| Tier | Amount / duration | Benefits |
|---|---|---|
| Tier 1 | 1,000+ $MAGMA | Submission fee waived; early signal feed (12h head start) |
| Tier 2 | 10,000+ / 30+ days | Protocol fee reduced to 1.5%; 1.25x Echo Pool weight |
| Tier 3 | 50,000+ / 90+ days | Protocol fee 1%; 1.5x Echo Pool weight; Guardian Narrative Pool access |
| Tier 4 | 100,000+ | Protocol fee 0.5%; 2x Echo Pool weight; governance weight 1.5x |
Echo Pool weight stacks with the Eruption Streak ticket multiplier in the Echo Pool draw.
Buyback mechanism
Weekly automated $MAGMA purchases are funded from protocol revenue — including the Core Pool's 5%
(500 bps) slice of the FALSE forfeited-yield capture (principal is never forfeited; see
Pool Architecture). Purchased $MAGMA is distributed to
Tier 3+ stakers as bonus distributions. The feedback loop is deliberate: more resolved volume →
more buyback pressure → higher $MAGMA price → more valuable to stake.
TGE conditions
$MAGMA will not launch until all of the following hold:
- V1 live on mainnet with proven product-market fit.
- $1M+ total value locked.
- Oracle accuracy exceeding 90% over 100+ resolved narratives.
- Echo Pool distributed successfully for three or more epochs.
- Community engagement demonstrating sustained participation.