Bonding

The governance bonding mechanism (G-Bonding) functions as the primary method for acquiring protocol governance rights. It is designed to attract early participants who contribute to shaping the protocol’s foundational decisions, and bonding discounts serve as compensation for this commitment. G-Bonding is an algorithmic, fully automated system run by smart contracts, which functions autonomously without any human intervention.

In addition, G-Bonding serves as a capital formation mechanism to build the Treasury during the genesis phase of protocol development. Early and aggressive Treasury formation is economically rational, as Treasurys’ size determines both the magnitude of future staking rewards and the protocol’s long-term economic resilience. To ensure the Treasury reaches sufficient scale, 50% of the GEN supply is allocated to bonding over an eight-year genesis period. This allocation is intentionally front-loaded to maximize early Treasury formation and gradually tapers according to a four-year halving schedule.

Cycles	Years	Total Bonding	Annual Bonding
1	1-4	700,000,000	175,000,000
2	5-8	350,000,000	87,500,000

Bonding discounts are inversely proportional to Treasury health, with discount levels adjusting automatically based on the ratio between circulating GEN supply and Treasury reserves. If the Treasury is undercapitalized relative to GEN’s market capitalization, discounts increase to attract capital. Conversely, as the Treasury becomes sufficiently capitalized, discounts converge toward zero. Vesting durations are scaled in proportion to the applied discount, such that larger discounts require longer vesting commitments.