midnight-mcp 0.1.2 → 0.1.3

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@@ -892,6 +892,282 @@ export circuit unpause(): [] {
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  3. **Test pause scenarios** thoroughly
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  4. **Document pause conditions** for users
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  5. **Consider timelock** for unpause in high-value contracts
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+ `,
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+ "midnight://docs/tokenomics": `# Midnight Tokenomics and Incentives Whitepaper
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+
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+ ## Overview
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+ Midnight introduces a novel dual-component tokenomics system with NIGHT (utility token) and DUST (transaction resource), designed for operational predictability, privacy, and cross-chain cooperation.
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+
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+ ## Core Pillars
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+
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+ 1. **Operational Predictability**: NIGHT generates DUST continuously, enabling transactions without direct token expenditure
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+ 2. **Rational Privacy**: DUST is shielded - transactions don't leave metadata trails
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+ 3. **Cooperative Tokenomics**: Multi-chain architecture enables cross-chain value creation
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+ 4. **Fair Distribution**: Free, multi-phase token distribution (Glacier Drop)
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+
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+ ---
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+
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+ ## The NIGHT Token
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+ NIGHT is Midnight's native utility token. One NIGHT = 1,000,000 STARs.
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+
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+ ### Key Properties
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+
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+ - **Unshielded**: NIGHT transactions are publicly visible on-chain
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+ - **Transferable**: Can be freely transferred, listed on exchanges, bridged across networks
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+ - **Total Supply**: 24 billion NIGHT tokens
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+ - **Non-expendable**: Not consumed to execute transactions
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+ - **Disinflationary**: Circulating supply expansion slows over time
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+ - **Multi-chain Native**: Exists natively on both Cardano (as Native Asset) and Midnight
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+
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+ ### Stakeholders
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+
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+ - **NIGHT Token Holders**: Control future network governance
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+ - **Midnight Block Producers (MBPs)**: Validate blocks, receive rewards
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+ - **Midnight Foundation**: Long-term ecosystem development
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+ - **On-chain Treasury**: Protocol-managed fund for ecosystem growth
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+ - **Reserve**: Protocol-managed pool for block production rewards
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+
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+ ### Cross-Chain Token States
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+ Tokens can be:
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+ - **Protocol-locked**: Cannot move or generate DUST
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+ - **Protocol-unlocked**: Full utility and transferability
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+
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+ Key invariant: A token unlocked on one chain is locked on the other, ensuring effective supply never exceeds 24 billion.
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+ ### Cross-Chain Invariants
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+
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+ \`\`\`
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+ C.R + C.L + C.U = M.R + M.L + M.U = S (24 billion)
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+
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+ Where:
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+ - C = Cardano, M = Midnight
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+ - R = Reserve, L = Locked, U = Unlocked
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+ - S = Total Supply
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+ \`\`\`
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+
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+ ---
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+
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+ ## The DUST Resource
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+ DUST is the shielded, renewable resource for transaction fees.
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+
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+ ### Key Properties
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+ - **Shielded**: Transactions don't expose wallet addresses or details
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+ - **Consumable**: Burned when used (not recycled)
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+ - **Renewable**: Continuously generated by NIGHT holdings
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+ - **Decaying**: Balance decays when disassociated from generating NIGHT
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+ - **Non-transferable**: Cannot be bought, sold, or transferred between addresses
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+ - **MEV-resistant**: Shielding prevents attackers from identifying victims
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+
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+ ### DUST Mechanics
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+
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+ **Generation**:
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+ 1. NIGHT holder designates a DUST recipient address
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+ 2. DUST accumulates linearly over time up to a cap
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+ 3. Cap is proportional to associated NIGHT balance
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+ **DUST Cap**: Maximum DUST = f(associated NIGHT balance)
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+ **Usage**:
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+ - DUST is consumed/burned when used
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+ - No DUST is collected by block producers
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+ - Generation resumes after use if below cap
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+
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+ **Decay**:
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+ - Severing NIGHT association causes linear decay
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+ - Prevents double-spending through cap enforcement
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+ ### DUST Beneficiaries
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+ 1. **NIGHT Holders**: Generate and use their own DUST
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+ 2. **DUST Recipients**: Receive DUST generation from NIGHT holders
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+ 3. **DUST Sponsees**: Transactions paid by a DUST holder (enables tokenless UX)
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+ ---
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+ ## Transaction Fees
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+ ### Components
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+ \`\`\`
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+ TxFee = CongestionRate × TxWeight + MinFee
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+ \`\`\`
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+ - **Minimum Fee**: Fixed fee preventing DDoS attacks
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+ - **Congestion Rate**: Dynamic multiplier based on network demand
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+ - **Transaction Weight**: Based on computational resources (initially storage in KB)
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+ ### Block Utilization Target: 50%
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+ - Below 50%: Fees decrease to stimulate activity
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+ - Above 50%: Fees increase to manage congestion
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+ - Acts as automatic stabilizer for network efficiency
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+ ---
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+ ## Block Production & Rewards
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+ ### At Launch
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+ - Federated block production by trusted permissioned nodes
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+ - Initial producers don't receive rewards
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+ - Progressive decentralization planned
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+ ### Moving to Permissionless
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+ - Cardano SPOs can become Midnight Block Producers
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+ - Selection proportional to delegated ADA stake
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+ - Dual-network participation doesn't affect Cardano rewards
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+ ### Block Reward Formula
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+ **Base Distribution Rate (R)**:
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+ \`\`\`
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+ R = π(1 - B - T) / (B × γ)
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+ Where:
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+ - π = Initial annual inflation rate (~3.14%)
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+ - B = Reserve allocation percentage
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+ - T = Treasury allocation percentage
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+ - γ = Blocks per year
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+ \`\`\`
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+ **Base Reward**:
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+ \`\`\`
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+ Nb = Bo × R
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+ Where Bo = Outstanding tokens in Reserve
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+ \`\`\`
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+ ### Reward Split
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+ Rewards divided between block producer and Treasury based on block utilization:
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+ \`\`\`
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+ Actual Reward (Na) = Nb × [S + (1 - S) × U]
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+ Treasury Share (Nt) = Nb - Na
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+ Where:
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+ - S = Subsidy rate (95% at launch)
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+ - U = Block utilization ratio
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+ \`\`\`
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+ - **Full block**: Producer gets 100% of base reward
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+ - **Empty block**: Producer gets only the subsidy (95%)
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+ - **Partially full**: Linear interpolation between them
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+ ---
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+ ## Token Distribution
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+ ### Design Principles
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+ - **Broad**: No single party dominates
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+ - **Inclusive**: Open to participants beyond crypto
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+ - **Free**: Allocated at no cost
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+ - **Transparent**: Open-source audited smart contracts
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+ ### Phase 1: Glacier Drop (60 days)
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+ **Eligible Networks**:
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+ - Cardano (50% allocation)
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+ - Bitcoin (20% allocation)
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+ - Ethereum, Solana, XRPL, BNB Chain, Avalanche, Brave (remaining 30%, proportional)
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+ **Eligibility**:
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+ - Minimum $100 USD equivalent in native tokens at snapshot
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+ - Address not on OFAC sanctions list
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+ - Random historical snapshot to prevent gaming
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+ **Mechanics**:
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+ 1. Sign message proving address ownership
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+ 2. Provide unused Cardano address for redemption
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+ 3. Tokens initially frozen, thaw during redemption period
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+ ### Phase 2: Scavenger Mine (30 days)
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+ - Process unclaimed Glacier Drop tokens
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+ - Computational puzzles accessible to general public
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+ - Daily allocation over 30 one-day slots
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+ **Apportionment of Unclaimed Tokens**:
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+ - ~35% → Midnight Foundation
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+ - ~30% → Reserve (block rewards)
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+ - ~10% → Midnight TGE (partnerships/liquidity)
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+ - ~5% → On-chain Treasury
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+ - Rest → Scavenger Mine participants + Lost-and-Found
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+ ### Phase 3: Lost-and-Found (4 years)
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+ - Second chance for eligible non-claimers from Glacier Drop
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+ - Fractional allocation of original entitlement
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+ - After 4 years, unclaimed tokens go to Treasury
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+ ### Redemption Period (450 days)
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+ **Thawing Schedule**:
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+ - Random start day (1-90 days after genesis)
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+ - 25% unlock at start, then every 90 days
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+ - Total: 4 unlocks over 360 days
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+ ---
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+ ## Cooperative Tokenomics
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+ ### Capacity Marketplace
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+ Enables non-NIGHT holders to access Midnight:
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+ **Off-chain Models**:
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+ - DUST generation leasing
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+ - Broker-managed leasing
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+ - Babel Station (DUST filling station using ZSwap)
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+ **On-chain Models** (future):
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+ - Ledger-native capacity leasing
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+ - On-chain capacity exchange
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+ ### Multi-chain Features
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+ **Cross-chain Observability**: Actions on one chain trigger agents on another
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+ **Multichain Signatures**: Treasury can receive fees in other tokens
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+ ---
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+ ## Governance
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+ ### At Launch: Federated
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+ - Select committee with equal powers
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+ - Multisig mechanism for protocol updates
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+ - Handles: parameter updates, protocol upgrades, hard forks
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+ ### Future: Decentralized On-chain
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+ - Community-centric tools and processes
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+ - Proposal submission and voting
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+ - Treasury access for approved proposals
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+ - Automated protocol updates
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+ ---
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+ ## Glossary
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+ - **NIGHT**: Midnight's native utility token
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+ - **STAR**: Smallest subunit of NIGHT (1 NIGHT = 1M STARs)
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+ - **DUST**: Shielded transaction resource
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+ - **MBP**: Midnight Block Producer
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+ - **Reserve**: Protocol-managed token pool for block rewards
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+ - **Treasury**: Protocol-managed fund for ecosystem growth
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+ - **Glacier Drop**: Initial free token distribution
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+ - **Scavenger Mine**: Computational task-based distribution
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+ - **ZSwap**: Atomic asset swap mechanism for privacy
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+ - **Babel Station**: Service enabling tokenless transactions
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  `,
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  };
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  //# sourceMappingURL=docs-content.js.map
@@ -67,6 +67,12 @@ export const documentationResources = [
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  description: "Pausable and other security patterns from OpenZeppelin",
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  mimeType: "text/markdown",
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  },
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+ {
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+ uri: "midnight://docs/tokenomics",
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+ name: "Midnight Tokenomics Whitepaper",
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+ description: "Complete tokenomics documentation covering NIGHT token, DUST resource, block rewards, token distribution (Glacier Drop), and cooperative tokenomics",
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+ mimeType: "text/markdown",
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+ },
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  ];
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  /**
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  * Get documentation content by URI
package/package.json CHANGED
@@ -1,6 +1,6 @@
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  {
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  "name": "midnight-mcp",
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- "version": "0.1.2",
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+ "version": "0.1.3",
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  "description": "Model Context Protocol Server for Midnight Blockchain Development",
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  "type": "module",
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  "main": "dist/index.js",