🪙Tokenomics

OTL Token

OTL is the native utility token of the Orimatla protocol, built on the BEP-777 standard of the BNB Smart Chain (BSC), which enables the following:

Reward users and support ongoing development;
Access exclusive experiences, benefits, and features;
Participate in decentralized governance.

Distribution

The OTL token has a maximum supply of 10 billion, distributed as follows:

1. Reward Distribution Method

The distribution of Orimatla’s 6 billion OTL tokens follows a mathematically structured model designed to ensure long-term sustainability. By combining an exponentially decreasing issuance logic with network activity indicators, the system is engagement-driven and dynamically adjusts to the platform’s real usage.

Designed for gradual and controlled operation, the model envisions the release of the token pool over a 20-year period, distributed across 1,040 weekly cycles.

The release process operates in two complementary layers, ensuring both flexibility and predictability:

EmissionCap (Weekly Cap): An exponentially decreasing curve that defines the maximum number of OTLs that can be issued in each cycle.
Adaptive Emission: A fraction of the EmissionCap that is effectively issued, dynamically adjusted based on the platform’s level of activity and user engagement.

2. EmissionCap (Exponential Emission Cap)

The maximum number of OTLs that can be issued in a given cycle t is defined by an exponential decay progression model. This model ensures that token issuance gradually decreases over time, effectively controlling long-term inflation.

The formula for the EmissionCap is:

E(t) = E_0 \cdot k^{(t - 1)}

Where:

E(t): Represents the EmissionCap (maximum emission) for cycle t.
E₀: The initial emission in the first cycle (t = 1). For the Orimatla model, E₀ is set at 8,000,000 OTLs.
k: The constant decay rate per cycle. This factor determines how quickly the emission decreases over time.
t: The number of the weekly cycle, ranging from 1 to 1040 (corresponding to 20 years).

Decay Rate (k) Calculation

The decay rate k ensures that the total sum of emissions over 20 years (1,040 cycles) does not exceed the cap of 6,000,000,000 OTLs.

To determine k, the formula for the sum of a finite geometric series is used, where Sₙ is the total sum, a is the first term (E₀), r is the ratio (k), and n is the number of terms (1,040 cycles):

S_n = a \times \frac{1 - r^n}{1 - r}

By substituting the known values (Sₙ = 6,000,000,000, a = 8,000,000, n = 1040) and solving numerically for k, we obtain:

k \approx 0.99933243

Thus, the complete formula for the EmissionCap in any given cycle t is:

E(t) = 8{,}000{,}000 \cdot (0.99933243)^{t - 1}

This decay rate ensures that the emission curve remains smooth and that the total of 6 billion OTLs is not exceeded by the end of the 1,040 cycles. If the actual issuance in any given cycle falls below the EmissionCap, the unused balance remains available for future cycles.

3. Formula for the Total Amount of OTLs Issued

The total projected amount to be issued over 1,040 cycles is 6 billion OTLs. This is the sum of a geometric series. The formula for the sum of a finite geometric series is:

S_n = a \times \frac{1 - r^n}{1 - r}

Where:

Sₙ é a soma dos primeiros n termos.
a is the first term (E₀).
r is the common ratio (k).
n is the number of terms (1,040 cycles).
In this case, a = E₀ = 8,000,000, r = k ≈ 0.99933243, and n = 1,040.

S_{1040} = 8\,000\,000 \times \frac{1 - (0{,}99933243)^{1040}}{1 - 0{,}99933243}

S_{1040} \approx 6\,000\,000\,000\ \mathrm{OTLs}

S_n = \sum_{t=1}^{1040} E(t) = \sum_{t=1}^{1040} 8.000.000 \times k^{(t-1)} = 8.000.000 \times \frac{1 - k^{1040}}{1 - k}

If the actual issuance is lower than the maximum cap in each cycle, the remaining OTLs will be distributed in the cycles following the 1,040th cycle.

Over the course of the 1,040 planned cycles (equivalent to 20 years), this cap gradually decreases from 8,000,000 OTLs in the first cycle to values close to 2,500,000 OTLs in the final cycle.

The EmissionCap value for cycle 1040 is calculated by:

E(1040) = E_0 \cdot k^{(1040 - 1)} = 8\,000\,000 \cdot 0{,}99933243^{1039} \approx 2\,499\,992

This value represents the maximum limit of OTLs that can be issued in cycle 1040, assuming the network is fully active. The formula ensures that, even in the final cycles, issuance remains sustainable and aligned with the platform's stage of maturity.

4. Adaptive Emission (Effective Adaptive Issuance)

While the EmissionCap defines the maximum ceiling, the Adaptive Emission determines the actual amount of OTLs released in each cycle. This adaptive layer is crucial for adjusting issuance according to network engagement and activity, promoting a responsive and sustainable model.

The Adaptive Emission for cycle t, denoted as EffectiveEmission(t), is a proportion of EmissionCap(t):

\text{EffectiveEmission}(t) = \text{EmissionCap}(t) \times \text{NetworkActivityFactor}(t)

Where NetworkActivityFactor(t) is a factor ranging from 0 to 1, summarizing the level of demand and engagement on the network. It is derived from the confluence of three internal metrics, each normalized to a 0–1 scale and weighted by adjustable parameters:

(w_1,\ w_2,\ w_3), \quad \text{where } w_1 + w_2 + w_3 = 1

The parameters influencing NetworkActivityFactor(t) are:

N_PrevEmission(t) (Normalized Previous Emission): Represents the usage of the emission cap in the previous cycle. Calculated as EffectiveEmission(t–1) / EmissionCap(t–1). For the first cycle, it assumes an initial value of 0.5.
N_XP(t) (Normalized Experience Points): Reflects overall user engagement, based on the total valid XP accumulated in cycle t by verified accounts. Calculated as min(1, XP_Total(t) / XP_Target), where XP_Total(t) is the accumulated XP and XP_Target is the engagement target.
N_Tx(t) (Normalized Transaction Volume): Indicates token utility and adoption, based on the total volume of OTLs transacted in cycle t (not the number of transfers). Calculated as min(1, Tx_OTL(t) / Tx_Target), where Tx_OTL(t) is the transaction volume and Tx_Target is the volume target.

Confluence Logic and Emission Phases

The calculation of NetworkActivityFactor(t) varies according to the network development phase:

Initial Phase (Cycles 1 to 52): In the first 52 cycles, N_Tx(t) is not considered. This allows the network to establish itself and users to engage without the pressure of high early transaction volumes. The formula is:

\text{NetworkActivityFactor}(t) = \min\left(1,\ w_1 \times N_{\text{PrevEmission}}(t) + w_2 \times N_{\text{XP}}(t)\right)

Full Engagement Phase (From Cycle 53 onward): From cycle 53, all three parameters contribute to NetworkActivityFactor(t), reflecting the growing importance of token utility and economic activity for sustainable issuance. The formula is:

\text{NetworkActivityFactor}(t) = \min\left(1,\ w_1 \times N_{\text{PrevEmission}}(t) + w_2 \times N_{\text{XP}}(t) + w_3 \times N_{\text{Tx}}(t)\right)

The min(1, …) function in both cases ensures that NetworkActivityFactor(t) does not exceed 1, preventing EffectiveEmission(t) from surpassing EmissionCap(t).

To ensure that rewards are always distributed, the model also establishes a minimum threshold: even if the activity factor results in a very low value, the effective emission will not fall below 30% of the cycle’s cap.

5. Emission Smoothing: The EWMA Model

To ensure more stable issuance based on input data, Orimatla implements a smoothing layer over the adaptive issuance of OTL tokens using an Exponentially Weighted Moving Average (EWMA), applied to the Network Activity Factor (NAF).

The average is calculated as follows:

\text{EWMA\_NAF}(t) = \alpha \cdot \text{NAF}(t) + (1 - \alpha) \cdot \text{EWMA\_NAF}(t - 1)

And the effective issuance is influenced by this smoothed value:

\text{EffectiveEmission}(t) = \text{EmissionCap}(t) \cdot \text{EWMA\_NAF}(t)

Where:

NAF(t): Network Activity Factor in the current cycle. EWMA_NAF(t−1): Smoothed value from the previous cycle. α: Smoothing factor.

Defined Parameter The value of α was set to 0.33, which corresponds to a window of approximately 4 weekly cycles, or 1 month. This configuration assigns:

33% weight to the current value (NAF(t))
67% weight to the accumulated history (EWMA_NAF(t−1))

Using EWMA ensures operational stability by smoothing fluctuations without compromising the network’s legitimate growth. Its moderate responsiveness allows the issuance to follow real usage trends. Additionally, it provides predictability for participants by aligning token release with the ecosystem’s sustained activity.

Distribution System Initialization For the initial cycle (t = 1), where no historical data is available:

\text{EWMA\_NAF}(1) = \text{NAF}(1)

6. Decentralized Governance (DAO) and Parameter Adjustment

While the fundamental structure of the OTL issuance model is mathematically defined to ensure predictability and sustainability, the DAO may play a key role in optimizing specific parameters at certain periods to reflect the network’s dynamic conditions. These two parameters are:

The k factor after the 1040 cycles, and
The smoothing factor α in the EWMA model.

Specifically, the smoothing factor α in the EWMA model (EWMA_NAF(t) = α ⋅ NAF(t) + (1 - α) ⋅ EWMA_NAF(t-1)) is a parameter that can be adjusted, subject to predefined rules and limits in the smart contract. This adjustment allows the community to fine-tune the system’s responsiveness to changes in network activity, balancing stability with adaptability.

Rules for Adjusting α via DAO

To ensure the integrity and stability of the issuance model, adjusting α via DAO will be governed by the following rules, codified in the smart contract:

Variation Limits: The value of α will have a predefined minimum and maximum range (e.g., 0.1 ≤ α ≤ 0.5). This prevents extreme adjustments that could make issuance overly volatile (α too high) or too sluggish to respond (α too low).
Cooldown Period: The first adjustment, if needed, can only occur after the DAO has been fully operational for at least one year. After a successful α adjustment, a cooldown period (e.g., 8 cycles) must pass before a new proposal can be submitted and voted on. This prevents frequent changes and allows time to observe the impact of previous adjustments.
Quorum and Qualified Majority: Proposals to adjust α will require a minimum participation quorum and a qualified majority (e.g., 66.7% of votes) to be approved. This ensures decisions reflect strong community consensus and prevents governance attacks.
Transparency and Auditability: All α adjustment proposals and voting outcomes will be recorded on-chain, ensuring full transparency and auditability. The community will be able to monitor the history of adjustments and understand the rationale behind each change.
Technical Justification: Although not enforced by the smart contract, it is expected that proposals to adjust α be accompanied by a clear technical justification, presenting network data analysis and the expected impact. This promotes informed, data-driven governance.

These rules aim to empower the DAO to optimize the issuance model responsibly, ensuring the Orimatla ecosystem remains adaptable and aligned with the community’s interests, without compromising the stability and predictability of the reward system.

7. Conversion of XP into OTLs

Orimatla adopts a set of rules to define how XP is converted into OTLs. These rules are designed to ensure a sustainable, proportional distribution based on each user’s actual contribution over time.

Reward distribution begins with the score assigned to each platform action, generating XP (experience points), which are then converted into the OTL token following the adaptive distribution method previously described, along with the three cycles detailed below:

1. Creation Cycle (7 days)

Throughout the period, users accumulate XP based on their creations and interactions. At the end of 7 days, the XP accumulated in verified accounts is reserved for conversion into OTLs. The Creation Cycle runs continuously—when one ends, the next begins.

2. Conversion Period (2 days)

At the end of a Creation Cycle, the Conversion Period begins. The XP reserved in verified accounts is processed for conversion into OTLs. During this time, the system calculates the OTL-per-XP rate and performs the conversion. The calculation is straightforward, as shown below:

Total OTLs to be distributed in the cycle: 1000 OTLs
Total XP accumulated: 1,000,000 XP
1000 OTLs ÷ 1,000,000 XP = 0.001 OTLs per XP

During this period, XP for the new Creation Cycle already begins to accumulate.

3. Release Cycle (5 continuous days)

This cycle begins immediately after the Conversion ends. The distribution of OTLs is conducted under a cooldown period. Over the next five days, 20% of the total converted amount is released daily, in fractions, to verified users.

Unverified accounts will continue to accumulate XP, but their XP will not be considered for the N_XP(t) parameter.

Creation Cycles overlap with the conversion and release cycles, generating a continuous cadence. This promotes flow and prevents concentrated liquidity spikes, ensuring greater predictability and stability in the ecosystem.

Launch

To ensure sustainable growth and quality support, Orimatla will be launched globally in a phased rollout. During the pre-launch phase, users with access to the first version of the platform can already publish images, interact, and accumulate XP through their actions. After the official launch of the OTL token, the first Conversion Cycle begins, during which the accumulated XP will be converted into OTLs and distributed to users.

The platform’s functionalities will be implemented gradually, as outlined in the roadmap, always aiming for sustainable growth aligned with community interests.

Ecosystem Sustainability Dynamics

Orimatla’s continuity is supported by two main revenue generation sources:

▪️2% Fee on OTL Token Transfers

Purpose: To support the ongoing evolution of the platform and continuously fund network incentives.

Distribution:

50% is automatically directed to the strategic reserve, which can only be accessed through community DAO decisions.
50% is directed to the rewards pool and reserved to supplement cycles beyond the 1040, ensuring continued reward distribution over the long term.

The release of OTLs allocated to the rewards pool still respects the emission cap curve (EmissionCap), with the k factor adjustable after the end of the 1040 creation cycles via DAO voting.

This fee is applied via smart contract, ensuring predictability and operational integrity.

▪️Activation of Advanced Features (XP Boosts and DropPacks)

Purpose: To diversify revenue streams—both fiat and crypto—ensuring continuous network operation with reduced exposure to market volatility.

Destination: The funds are converted into stable assets and allocated to the strategic reserve, strengthening Orimatla’s financial resilience.

These features are acquired by users seeking to enhance their experience and by brands aiming to boost campaigns, increase visibility, and connect with creators through specific tools.

DropPacks are dynamic OTL bundles that users and brands can acquire to expand their resources, activate partnerships, and use within the Orimatla ecosystem.

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Last updated 11 days ago