$CELAR tokenomics: security priced in closed form
Celar's token design starts from one observation: on a confidentiality chain, the security budget must never lapse — a captured key committee could decrypt history retroactively. Every monetary choice follows from that.
Supply and issuance
- 1B genesis supply, publicly auditable every block — encrypted state can never hide inflation.
- Disinflationary issuance: i(y) = max(1.5%, 7% · 0.8y) — declining yearly to a 1.5% floor (~year 7). Governance may lower the floor, never raise it.
- Fees burn: 100% of base fees at genesis (constitutional floor ≥ 50%). Once burn exceeds the 1.5% floor, net supply shrinks — deflation funded by usage, with the security budget intact.
The staking corridor
Issuance auto-adjusts ±1% to hold roughly 60% of supply bonded. If bonding slips — weakening the capture bound — yield rises automatically to pull stake back. Nothing about staking is fixed-rate, by design: a fixed APR would let the security budget ignore reality. Year-1 nominal APR is ≈11.7% (≈4.7% real + KMS fees); the protocol dashboard headlines real yield, not the inflated nominal number.
The health rule
Everything is bound together by a published, falsifiable constraint: ℋ = attack cost ÷ shielded value at risk ≥ 2, where attack cost C = α*·E·σ·S·p is computed from measured inputs and published live with its derivation. If ℋ approaches the floor, the protocol raises the cost of attack — a harder quorum, more validators, higher yield — and never throttles users. Shielded-value onboarding follows a pre-committed schedule so the vault can't outgrow its guards.