How OffBook works

1. 1

   The token is created

   The token itself is a pons launch: fixed supply, bonding curve, nothing custom. What OffBook adds is a vault, deployed in the same transaction, and set as the token’s fee recipient. pons only lets the current recipient move that address, and the vault has no function to move it. It is settled at block one.

2. 2

   Every trade pays a fee

   1% is the base fee, taken by pons on every buy and sell. pons keeps 30% of it. On top of that, the creator picks an extra fee between 0% and 10%, frozen at launch. Everything except the pons share lands in the vault.

3. 3

   The vault is harvested

   Anyone can trigger a harvest. There is no privileged caller, because there is nothing to gain: the vault has exactly one destination, and no withdrawal function of any kind. Not for the creator, not for us.

4. 4

   The fees become stock

   The vault swaps its balance for the stock token the creator chose. The swap is bounded by a Chainlink price with a freshness check, so a bad route cannot be pushed through. Of what reached the vault, OffBook takes 15% to run the indexer, the keeper and the payouts. The rest is the holders’.

5. 5

   Holders are paid

   Balances are snapshotted at the block of the conversion, and each holder’s share is their share of the supply at that moment. Shares accumulate in a Merkle tree per stock, so ignoring ten rounds costs nothing: one claim collects all of them. Hold five tokens that all pay in NVDA and you still claim NVDA once.

Take a creator who set the extra fee to 5%. On $100 traded:

Total fee paid by the trader

$6.00

To holders, as stock

$4.85

To OffBook, for infrastructure

$0.85

To pons, the launch protocol

$0.30

The same breakdown for every fee level is on the fees page, computed from live numbers rather than from this text.

When enough has been bought on the curve, the token graduates: trading moves to a Uniswap pool and the curve closes. Fees keep flowing to the same vault, from the pool instead of the curve. Nothing about the reward mechanism changes, and holders do not need to do anything.

Worth stating plainly, because it is the part a careful reader will look for.

• Nobody can redirect a token’s fees once it is launched. Not the creator, not OffBook. The vault’s only destination is the payout contract.
• The payout contract refuses to publish a distribution it cannot honour. It checks its own balance first, so the interface can never show you a reward that is not actually there.
• OffBook computes the shares off-chain and publishes them. The defence is not trust: every balance comes from public transfers, so anyone can recompute a round and compare. The full list of shares is published with each one.
• OffBook decides which stocks can be paid out, based on how deep their market is and whether a price feed exists. A stock whose market thins out is removed from rotation.

• A token with no trading pays nothing. Rewards are a share of fees, and fees are a share of volume. No volume, no reward.
• Memecoins can lose all of their value, including one that pays rewards. The reward is not a floor.
• Tokenized stocks are issued by a third party and can be paused by their issuer. A paused stock cannot be paid out until it resumes. Balances already claimed are unaffected.
• pons, the launch protocol underneath, is not audited at the time of writing. OffBook cannot change that, and says it rather than leaving it out.