Polaris (POLS) 

Build withPOLS is the core,useThree-dimensional point structureProven with network effects (PoNE）technicalRWA incubation platform,Through star field staking anddeflationary spiral driveaccomplishsustainableWeb3wisdomeconomysystem。

POLSWant to create something that can be reshapedGlobal real assets (RWA) issuance and circulation paradigm, breaks the inherent barriers of poor liquidity of heavy assets and high participation threshold in the traditional financial system, and builds a smart economic ecology with deep binding and seamless coupling of "on-chain star field - off-chain real scene". This ecosystem not only realizes the value exchange between the digital space and the physical world, but also allows on-chain assets to always resonate with the operating conditions of the offline real economy through real-time data interaction and dynamic equity adjustment.

Through the deep integration of the immersive interactive capabilities of the three-dimensional distributed nodes of the Metaverse,The efficient collaboration mechanism of PoNE network effect consensus and the value stability model of deflationary star field staking,POLSInnovatively transform traditional heavy assets such as real estate, new energy projects, and high-end manufacturing equipment into encrypted native income units with the characteristics of divisible holdings, sustainable iterative upgrades, and community joint governance. This transformation process not only lowers the capital threshold for heavy asset investment, but also ensures the security of rights and interests through transparent on-chain records, ultimately allowing any individual to easily participate and truly realize The inclusive value vision of "owning a star domain on the chain and sharing a share of real economic growth" provides a new path for the digital transformation of global assets that can be implemented and replicated.

Chapter 1 introduction

1. Existing crises and problems-DeFiandGameFiRevenue fatigue and the unsustainability of the value model

The Web3 ecosystem, especially the fields represented by GameFi and DeFi, is generally experiencing a phenomenon called "fatigue." This "fatigue" is not a single incident, but a collection of multiple negative manifestations, which together point to a core problem: the value models of most current Web3 projects have fundamental flaws and are difficult to support their long-term, healthy development. These manifestations include a continued decline in user engagement, dramatic fluctuations in yields, and a significant shortening of the life cycle of new projects. These phenomena do not exist in isolation, but are interrelated and intensified, which together constitute the severe challenges currently faced by the Web3 industry.

1.1 Decline in user engagement

User engagement is the core indicator to measure the health of any Internet product or ecosystem.This is especially true in the Web3 field, because users are not only consumers, but also builders of network effects and co-creators of value. However, many Web3 projects are currently facing a sharp decline in user participation, which directly threatens the survival and development of the project.

1.1.1 Analysis of causes: token depreciation, loss of sense of value and poor experience

The fundamental reason for the decline in user participation is that the project failed to provide continuous and stable value to users. This lack of value is mainly reflected in three levels: economic value, functional value and emotional value.

first,The loss of economic value is the most direct reason。in mostIn the GameFi or X-to-Earn projects, the main motivation for users to participate is to obtain token rewards. When the prices of these tokens continue to fall due to market fluctuations or imbalances in the project's internal economic model, users' expectations of "making money" will be disappointed, and the motivation to participate will disappear. For example, in the heyday of Axie Infinity, players could earn considerable income through the game. However, as the prices of its tokens SLP and AXS plummeted, a large number of users for the purpose of "making gold" quickly lost, resulting in daily active users (DAU) from the peak period.2.7 million dropped sharply to less than 350,000 . This kind of user loss caused by token devaluation is the reason why manyCommon difficulties faced by Web3 projects.

Secondly,The lack of functional value is also a key factor。manyThe Web3 project overemphasizes the economic attributes of its tokens and ignores the functionality and playability of the product itself. If a game itself is not fun and a DeFi protocol itself lacks innovation or practicality, then even if users are initially attracted by high returns, it will be difficult to form long-term stickiness. Once a higher-yielding alternative appears on the market, users will migrate without hesitation. This phenomenon was particularly obvious after the airdrop of Blur. After the airdrop, the number of users and transaction volume quickly fell back to the pre-airdrop levels, or even lower. This shows that users did not stay because of the product features, but only pursued short-term benefits. also,Bad user experience, such as complex operating procedures and high transaction fees (Gas fees) and unstable network performance also greatly hinder users' continued participation, especially for non-encryption native users, these thresholds are enough to deter them.

at last,The lack of emotional value cannot be ignored either.。A successful community requires a strong cohesion and sense of belonging, which requires the establishment of a long-term trust relationship between the project party and users. However, many project parties adopt a short-termist strategy, attracting users through over-promises and high incentives, and then neglect to maintain users and communities once their goals are achieved (such as completing financing or token issuance). This kind ofThe behavior of "cutting leeks" seriously damages the trust of users, leads to the deterioration of the community atmosphere, and users are no longer willing to contribute their time and resources to the project. When there is negative news in the market, users who lack emotional ties will not hesitate to sell their tokens and withdraw from the community, further exacerbating the decline of the project.

1.1.2 Evolution process: a vicious cycle from price decline to user loss

Decline in user engagement often follows a classic vicious cycle path,Right now Death Spiral . This process begins with a drop in the price of the token due to factors internal to or external to the project. Once token prices begin to decline, early profit-seeking users (especially"Mercenary" users) will be the first to perceive the risk and start selling tokens to lock in profits or reduce losses.. This selling behavior will further increase the supply of tokens on the market, causing the price to fall at an accelerated rate without a corresponding increase in demand.

A continued decline in prices could trigger broader panic. Users who originally planned to hold it for a long time will start to waver when they see the value of their assets shrinking and join the selling army. At this time, the project team may take some emergency measures, such as adding a token destruction mechanism, adjusting the speed of reward issuance, or conducting market repurchases, in an attempt to stabilize the currency price. However, these measures often treat the symptoms rather than the root cause. If the core value of the project (such as product attractiveness, real income) is not improved, these intervention measures will be difficult to reverse the market's pessimistic expectations. For example,During the crash of Terra/LUNA,althoughLuna Foundation Guard（LFG) A large amount of reserve funds (including Bitcoin) were used to defend the UST anchor, but these efforts were ultimately in vain in the face of huge panic selling.

With useA large number of users were lost, and the network effect of the project began to disintegrate. existIn Web3, user participation itself is part of the value. Fewer users means less community activity, less content output, and less network value. This creates a negative feedback loop:The loss of users leads to a decrease in the value of the project, which in turn leads to the loss of more users.. Eventually, the project may get stuck in a"ghost town"State, that is, although the protocol is still running, there is almost no real user activity, leaving only a few speculators playing a zero-sum game.

1.1.3 Direct consequences: loss of community vitality and project ecological shrinkage

The direct consequence of the decline in user participation is the loss of community vitality and the shrinkage of the project ecology. a healthyThe Web3 project requires an active community to jointly promote its development, including product testing, feature suggestions, content creation, marketing, etc. When a large number of core users are lost, the creativity and vitality of the community will dry up. Social channels such as Discord and Telegram will become silent, and the participation and quality of governance proposals will also drop significantly. Project parties will lose important feedback and support from the community, and the speed of product iteration and innovation will be significantly slowed down.

Ecological shrinkage is reflected in many aspects. forFor the GameFi project, the reduction in the number of players will lead to the collapse of the in-game economic system, the value of NFT assets will plummet, and the playability of the game will be greatly reduced due to the lack of opponents or teammates. For DeFi projects, the loss of users means a decrease in the total locked value (TVL), which will reduce the liquidity of the protocol and increase transaction slippage, thus affecting the user experience and the profitability of the protocol. In addition, ecological shrinkage will also affect the financing ability of projects. Investors, especially institutional investors, will focus on its user data and community activity when evaluating a Web3 project. A project that continues to lose users and has a lifeless community will find it difficult to obtain follow-up financial support and fall into a trap.The dilemma of "shortage of funds - stagnation of development - loss of users", which may eventually lead to the complete failure of the project 。

1.2 Yield fluctuations are too large

The rate of return is to attract users to enterAn important driver in the Web3 world, especially in the fields of DeFi and GameFi. However, the yields currently provided by many projects are extremely unstable and exhibit severe fluctuations. This volatility not only increases users’ investment risks, but also exposes the fragility of the project’s value model.

1.2.1 Analysis of causes: Token inflation mechanism and market speculation

The core reason for excessive fluctuations in yields lies in the inherent flaws of the project value model, which is mainly reflected in two aspects: unsustainable token inflation mechanism and market behavior dominated by speculation. First, manyWeb3 projects, especially the early GameFi project, have serious problems with their reward mechanism design. In order to attract a large number of users in a short period of time, project parties usually set a very high annualized rate of return (APY).For exampleBoth StepN and Axie Infinity offered hundreds or even thousands of APYs in their early days. . These high returns do not come from the real income of the project, but are paid for through the issuance of large amounts of project tokens. This kind of"Printing money" styleThe incentive model is essentially a variant of the Ponzi structure, that is, the benefits of early users come from the principal or token purchases of later users. 。

The unsustainability of this model is that the supply of tokens will grow exponentially over time, and demand (new users’ entry funds) often does not grow as fast as the supply. According to a simple model analysis, inIn the GameFi 1.0 model, the tokens produced by old players every day will continue to accumulate and become a stable currency in the market.Selling pressure continues, and the number and consumption capacity of new players are limited. Therefore, in the long run,The output of tokens will inevitably exceed consumption, causing the price of the currency to fall, and thus the rate of return denominated in tokens will also decline. . When the rate of return drops to a certain critical point and cannot cover the user's participation cost, users will begin to lose, leading to"Death Spiral".

Secondly, the highly speculative nature of the market also exacerbates the volatility of yields.Web3 markets, especially cryptocurrency markets, are inherently known for their high volatility. External factors such as market sentiment, macroeconomic environment, and regulatory policies will have a huge impact on token prices. When a project's yield is strongly correlated with its token price (which is the case in most projects), its yield is bound to fluctuate wildly with the ups and downs of market sentiment. For example, in a bull market, when the price of a token rises, the rate of return (denominated in legal currency) paid with the token will appear to be very high, attracting more users to pour in; whereas in a bear market, when the price of the token falls, the same rate of return will become insignificant or even negative, causing a large number of users to withdraw. This kind of fluctuation in yields driven by market speculation makes it difficult for users to form stable expectations about the long-term returns of the project, thus increasing the risk of participation.

1.2.2 Evolution process: attraction of high yields and unsustainable incentive distribution

The evolution of yield fluctuations usually begins with high incentive plans launched by project parties to quickly launch the market. In the early stages of the project, in order to attract the first batch ofFor “seed users”, the project side will promise very attractive rates of return. This high-yield information spreads rapidly through social media, KOL promotion and other methods, attracting an influx of "gold diggers" who pursue short-term interests. At this time, indicators such as the number of users, transaction volume, and total lock-up value (TVL) of the project will rise rapidly, creating a prosperous scene.

However, this prosperity is based on unsustainable incentive doling out. As the number of users increases, the project needs to pay more and more token rewards, and the inflationary pressure on the tokens continues to accumulate. Project parties may try to balance supply and demand by introducing a token destruction mechanism and increasing token usage scenarios, but these measures are often difficult to offset the huge inflationary pressure.

When the market enters a downward cycle, or the popularity of the project begins to subside, problems will erupt intensively. A drop in token prices will directly lead to a sharp drop in the rate of return denominated in fiat currency. At this time, users will find that their actual benefits are far lower than expected and cannot even cover the cost of the initial investment. This can trigger panic and dissatisfaction among users, causing them to start selling their tokens and exiting the project. The loss of users will further exacerbate the decline in token prices, forming a vicious cycle. In the end, the project’s myth of high yields is shattered, leaving behind a project whose token value may have dropped to zero and only a handful of users."Unfinished" projects.

1.2.3 Direct consequences: shaken investor confidence and capital outflows

Wild swings in yields are devastating to investor confidence. Investors, whether retail or institutional, want predictable, sustainable returns. It is difficult for investors to trust a project with a roller coaster-like return rate that rises and falls in its long-term value. When investors experienceAfter the huge gap between "high returns" and "negative returns", they will become suspicious of innovations in the entire Web3 field, thinking that these projects are just more beautifully packaged Ponzi schemes.

A shake in confidence will directly lead to capital outflows. Once investors lose confidence in a project, they will not hesitate to withdraw their funds and turn to other investment targets that appear to be more stable and promising. This outflow of funds is not limited to a single project, but may spread to the entire track or even the entire market.For example,The collapse of Terra/LUNA not only caused the evaporation of tens of billions of dollars in market value within its ecosystem, but also triggered panic selling across the entire cryptocurrency market, many withProjects unrelated to Terra have also been affected.

In addition, wild swings in yields can hinderThe true popularity of Web3 technology. For ordinary users, they are more concerned about whether the product or service can solve their actual problems, rather than complex token economic models and fluctuating rates of return. If the core value proposition of a Web3 application is "making money" rather than "being easy to use", then it will be difficult for it to attract real mass users. When the "making money" effect disappears, these users will be lost quickly, and the project will not be able to achieve the transformation from "speculation-driven" to "value-driven". Therefore, violent fluctuations in yields are not only a manifestation of the failure of the project value model, but also an important obstacle to the maturity and mainstreaming of the Web3 industry.

1.3 The life cycle of new projects is shortened

In recent years,A worrying trend is emerging in the Web3 space: the life cycles of new projects are getting shorter and shorter. Many projects can quickly attract a lot of attention in the early stages of their launch with novel concepts or high incentives, but they often quickly fall into a state of "death" in just a few months or even weeks. This phenomenon not only causes a huge waste of resources, but also seriously damages the reputation of the industry.

1.3.1 Analysis of causes: homogenization of models, lack of innovation and prevalence of short-termism

The fundamental reason for the shortened life cycle of new projects lies in the lack of intrinsic value and the impetuous external environment.

first,Homogenization of models and lack of innovationThis is the main reason for the rapid demise of the project.existIn the Web3 field, once a certain model (such as Play-to-Earn, Move-to-Earn) is proven to attract users and funds,A large number of imitation disks emerged. These projects often simply copy the code and economic models of successful projects without any substantial innovation. They lack unique value propositions, excellent product experiences or strong technical barriers, and rely only on minor changes and marketing gimmicks to try to get a piece of the market. This kind of homogeneous competition has led to users’ aesthetic fatigue and also made it difficult to form differentiated advantages between projects. When the marketAfter the popularity subsides, these projects lacking core competitiveness will be quickly abandoned by users.

Secondly,Short-termism prevailsis another important reason.in the currentIn the Web3 market environment, from project parties to investors to ordinary users, there is a widespread mentality of "making quick money". Project parties are more concerned about how to obtain large amounts of funds in a short period of time through token issuance or NFT sales., instead of focusing on polishing products and building an ecosystem. They tend to overpromise, attracting investors with flashy white papers and marketing packages, but make slow or even direct progress in actual development."Run away". Investors are also more likely to participate in early-stage projects that can bring high returns quickly, rather than holding on to assets with real value for the long term. This impetuous atmosphere makes it difficult for the project to obtain long-term and stable support. Once short-term benefits cannot be realized, the entire project will quickly collapse.

at last,The capital chain is brokenIt is the direct cause of the death of the project.manyThe Web3 project relied heavily on venture capital (VC) funding when it was launched. However, as the market environment changes and investors' risk appetite declines, financing has become increasingly difficult. If a project cannot achieve self-generation (that is, generate real income through products or services) within a predetermined time, or cannot obtain follow-up financing, it will soon face the dilemma of running out of funds. Once the project party is unable to pay the salary of the development team or maintain the operation of the server, the development of the project will stagnate and the community will disband, eventually leading to the death of the project.

1.3.2 Evolution process: rapid launch, short-term explosion and rapid demise

The evolution of a new project's life cycle typically follows a"Fast in, fast out" mode. During the project startup phase, in order to seize market opportunities, project parties often choose to quickly launch a minimum viable product (MVP), or even just a concept or white paper. They will conduct large-scale publicity and promotion through social media, KOL marketing, airdrops and other methods to quickly increase the visibility and influence of the project. Driven by market enthusiasm and high profit expectations, a large number of users and funds will pour into the project, causing its various data indicators (such as number of users, transaction volume, TVL) to experience explosive growth in the short term.

However, this explosive growth is often unsustainable. As the project progresses, users will gradually discover that there are many problems in the product itself, such as single functions, poor experience, and imbalanced economic models. At the same time, tokens from early investors began to be unlocked, selling pressure in the market gradually increased, and token prices began to fall. When users find that the actual value of the project is far lower than expected and they can no longer obtain satisfactory benefits from participating in the project, they will begin to churn. The loss of users will further lead to a decline in project data and token prices, forming a negative feedback loop.

Eventually, the project will quickly fall from the top to the bottom. If the project party cannot reverse the decline through product iteration or effective community operations, the project will quickly"die". This "death" may manifest itself as the development team stopping updates, the community channel going silent, the token price returning to zero, or the project party directly announcing the cessation of operations. The whole process may only take a few months or even a few weeks, showing a characteristic of "it flourishes and dies suddenly".

1.3.3 Direct consequences: waste of market resources and damage to industry reputation

The direct consequence of too short a new project life cycle is a huge waste of market resources and serious damage to the reputation of the entire industry. First, a lot of money, manpower, and time are invested in these short-lived projects that ultimately fail to produce any valuable products or services. These resources could have been used to support projects with truly innovative and long-term value, but instead they were wasted on speculation and hype. This misallocation of resources not only hindersThe real development of Web3 technology also makes the entire ecosystem more fragile and unsustainable.

Second, the rapid death of a large number of projects severely damagedThe image of the Web3 industry in the public mind. When ordinary users see projects turning from "stars" to "shooting stars" and countless investors losing all their money, they will develop a sense of distrust in the entire Web3 field and think it is a "casino" full of fraud and speculation. This negative impression will hinder the large-scale adoption of Web3 technology, making traditional enterprises and developers cautious about entering this field. As some analysts have pointed out, the negative publicity and word-of-mouth surrounding the collapse of these projects often leads traditional gamers and developers to believe that Web3 games and NFTs are nothing more than unregulated Ponzi schemes, thus preventing Web3 games from acquiring real gamers. If things continue like this, it will be difficult for the Web3 industry to attract real talents and capital, and its development will also stagnate.

2. The core reasons and failure mechanisms of the unsustainable value model

The "fatigue" symptoms displayed by Web3 projects, such as user churn, fluctuations in yields, and shortened life cycles, are rooted in the unsustainability of its underlying value model. A sustainable value model should be able to balance the interests of all parties, achieve continuous creation and capture of value, and have the ability to withstand external shocks. However, the value models of most current Web3 projects have fundamental flaws in their design, causing them to easily fail during operation. These shortcomings mainly include over-reliance on token inflation, lack of real income support, lack of real asset integration, and design flaws in the incentive mechanism.

2.1 Over-reliance on token inflation

Over-reliance on token inflation is the currentOne of the most common and fatal flaws in the Web3 project value model. The core incentive mechanism of many projects, especially DeFi and X-to-Earn projects, is to reward users’ participation behavior through the continuous issuance of tokens. This model is indeed effective in attracting users in the short term, but its inherent inflationary pressure will eventually destroy the entire economic system.

2.1.1 Failure mechanism: Unsustainable “money printing” incentives

The failure mechanism of the token inflation model lies in the fundamental imbalance of its supply and demand relationship. In this model, the supply of tokens is continuous and infinite, while demand mainly relies on the continuous influx of new users. The project team allows users toTokens are “mined” and these tokens constitute continuous selling pressure in the market. In order to maintain the currency price, the project party must design corresponding consumption scenarios, such as upgrading, breeding, purchasing props, etc., to consume these tokens. However, in practice,The rate of token production is often much greater than the rate of consumption 。We can use a simple model to illustrate this problem. Suppose a project is added every day100 users, each user produces 10 tokens per day and consumes 5 tokens at the same time. Then the new net output every day is (100 * 10) - (100 * 5) = 500 tokens. The next day, these 100 new users became old users, and they continued to generate tokens, while 100 new users joined. As this cycle continues, the stock of tokens on the market will grow exponentially, while the number and purchasing power of new users are limited. Over time, the supply of tokens will become severely oversupplied, causing their value to continue to dilute and prices to continue to fall.

When currency prices start to fall, the entire system falls into"Death Spiral". Users’ income (denominated in legal currency) decreases and their motivation to participate decreases. In order to retain users, projects may further increase token rewards, but this will only exacerbate inflation and cause currency prices to fall faster. Eventually, when the currency price falls below a certain critical point and the cost of user participation is higher than the benefits, users will lose a large number of users and the project will collapse.

2.1.2 Common reason: shortcut to attract users and funds in the short term

The fundamental reason why project parties generally adopt this unsustainable inflation model is that it is a way to quickly attract users and funds."shortcut". In the fiercely competitive Web3 market, projects face tremendous pressure and need to prove their value in a short period of time to gain recognition from investors and the market. By providing high token rewards, projects can quickly create a "wealth effect" and attract a large influx of "gold diggers" pursuing short-term interests. The influx of these users will bring beautiful data, such as high TVL, high transaction volume and high number of users. These indicators are crucial for the project side to conduct the next round of financing.

Additionally, designing a sustainable economic model is an extremely complex endeavor that requires a deep understanding of game theory, economics, and token engineering. Simply incentivizing users by issuing additional tokens is a relatively simple and crude way. Many project teams lack relevant professional knowledge and experience, or are unwilling to invest a lot of time and energy in detailed model design and stress testing, so they choose this seeminglyThe shortcut to "efficiency". However, this short-sighted behavior will ultimately bring disaster to the project.

2.1.3 Specific hazards: Token devaluation, reduced purchasing power and trust crisis

The dangers of over-reliance on token inflation are manifold. First, the most directThe harm isDevaluation of tokens and loss of purchasing power. When the supply of tokens in the market grows infinitely, the price of each tokenThe value represented will be diluted and its price will naturally fall. This means that the actual purchasing power of the rewards users receive by participating in the project will continue to shrink. This will seriously discourage users from participating and lead them to be more inclined to“Dig and sell” means that once the tokens are obtained, they are immediately sold on the market to lock in their value. This behavior will further intensify the selling pressure on the market and form a vicious cycle.

Secondly,Continued devaluation of the token will seriously damage the reputation of the project and the trust of users. When usedWhen households find that their assets are shrinking, they will doubt the ability and integrity of the project party. They will think that the project party is just passing"Printing money" to harvest users instead of creating real value. This loss of trust is irreversible. Once it is formed, even if the project party subsequently launches excellent products or features, it will be difficult to regain the trust of users.

at last,The token inflation model will make the project extremely fragile and difficult to withstand the impact of the external market.. In a bull market, inflation problems may be temporarily masked as new money continues to pour in as the overall market sentiment is optimistic.But once the market turns to a bear market, or any negative news appears, users' panic will be quickly ignited, leading to large-scale capital outflows and token selling. At this point, the project side will be unable to save the situation and can only watch the entire economic system collapse.

2.2 Lack of real income support

A healthy economy needs a continuous source of revenue to support its operations and development. Likewise, a sustainableWeb3 projects also need to have real income to support the value of their tokens. However, the vast majority of current Web3 projects lack real and sustainable revenue sources, and their token value mainly relies on speculation and subsequent user acquisitions.

2.2.1 Failure Mechanism: Lack of Value Capture Capability

The failure mechanism of projects lacking real income support is that they cannot form a complete value closed loop. In these projects, the value of the token does not come from the value created by the project itself, but from the market’s expectations of its future value. This expectation is often based onBased on the assumption that "more people will take over at higher prices", this itself is a kind of Ponzi logic.

a typicalExample isAnchor Protocol in the Terra Ecosystem。AncHor attracts users to deposit UST stablecoins by offering up to 20% APY. However, Anchor's own borrowing interest and collateral income are far from enough to pay such high deposit interest, and its huge interest gap needs to be subsidized by the Terra Foundation through the issuance of additional LUNA tokens. This means that Anchor itself has not created enough value to support its high returns, and its attractiveness relies entirely on external "blood transfusions." When the external "blood transfusion" stops (for example, the price of LUNA drops and the foundation is unable to subsidize it), the entire system will collapse.

For a truly sustainable value model, the value of its tokens should be tied to the project’s revenue or profits. For example, aThe value of the DeFi protocol's governance token can be reflected in the protocol's transaction fee income, and token holders can share these incomes by pledging tokens. The value of a GameFi project token can be reflected in in-game consumption. Players need to purchase tokens to pay for various in-game expenses. Only when a currency has a real and sustainable demand scenario can its value be effectively supported.

2.2.2 Common reasons: unclear business model and fuzzy profit path

The reason why Web3 projects generally lack real income support is that their business models are unclear and their profit paths are unclear. When many Web3 projects were launched, they focused more on technical implementation and community building, but did not fully consider how to make profits. They hope to attract users through the "X-to-Earn" model, and then achieve profitability through advertising, value-added services, etc. However, this model of "burning money first to secure land, then monetizing traffic" faces huge challenges in the Web3 field.

first,Web3 users have higher requirements for privacy and data sovereignty, and they are not willing to be bombarded with advertisements like Web2 users. Therefore, the traditional advertising model may not be applicable in the Web3 field. Secondly, the competition in the Web3 field is extremely fierce, and the switching cost for users is very low. If a project tries to make money by charging a fee, users are likely to turn to free alternatives. Finally, many Web3 projects themselves lack the "core" to generate revenue. For example, many GameFi games have poor gameplay and low players' willingness to pay. Their income mainly comes from the sale of NFT and tokens, which is essentially a "drum-passing" game.

2.2.3 Specific hazards: Weak project risk resistance and long-term operational difficulties

Projects lacking real income support,ThatVery weak ability to resist risks. In good times, they can rely on a constant influx of new money to stay afloat. But once the market turns bearish or there is a liquidity crisis, they will immediately be in trouble. Without a stable cash flow, they cannot pay the salaries of the development team, server costs, and marketing expenses, and they will eventually die.

In addition, the lack of real income also makes the projectLong-term operations become extremely difficult. For a project to continue to develop, it requires continuous product iteration, technological innovation and community building. These are all neededA lot of capital investment. If a project cannot generate revenue through its own operations, it will continue to rely on external financing. However, financing is not easy, especially in a difficult market environment. Once financing fails, project development will stall. Therefore, the life cycle of projects lacking real income support is destined to be short-lived.

2.3 There is no real asset landing and docking

Value comes from consensus, but consensus needs to be anchored. existIn the Web3 field, the value of many projects is entirely based on virtual and abstract consensus, and lacks connection with real-world assets. This "castle in the air" value model makes the project extremely fragile. Once the consensus breaks down, the value will instantly return to zero.

2.3.1 Failure mechanism: lack of value anchoring and blurred application scenarios

The failure mechanism of projects without real asset landing and docking lies in their value. "rootlessness" . these projectsThe value of tokens depends entirely on the community’s imagination and expectations of its future prospects. This expectation is highly subjective and unstable, and is easily affected by market sentiment, public opinion guidance and other factors. When the market is optimistic, the consensus will continue to strengthen and the token price will continue to rise; but when the market is pessimistic, the consensus will quickly collapse and the token price will plummet.

Algorithmic StablecoinThe collapse of TerraUSD (UST)is a typical example.UST attempts tosister tokenThe arbitrage mechanism between LUNA maintains the anchor with the US dollar without any real assets (such as US dollars, treasury bonds, etc.) as reserves. This design seems clever in theory, but is extremely fragile in practice. Once the market casts doubt on UST's anchoring ability, it will trigger a massive sell-off. In order to maintain the anchor, the system needs to continuously issue more LUNA to repurchase UST, which will cause the supply of LUNA to surge and the price to plummet. The plummeting price of LUNA will further weaken the market's confidence in UST, thus forming a "death spiral" and eventually leading to the collapse of the entire system.

andUST contrasts sharply with stablecoins that are backed by real assets, such as USDC and USDT. The issuers of these stablecoins claim that each of their tokens has an equivalent value in U.S. dollars or equivalent assets as reserves. Although the transparency and auditing issues of these reserves have been controversial, at least in theory, their value is anchored on real-world assets, so their price stability is much higher than algorithmic stablecoins.

2.3.2 Common reason: disconnect between technology and the real world

Web3 projects generally lack connections to real assets, and the reason for this is the huge gap that exists between technology and the real world. Putting real-world assets (such as real estate, stocks, art, etc.) on the chain requires solving legal, regulatory, technical and other problems. For example, how to ensure that the ownership of on-chain assets is true and valid? How to handle offline custody and delivery of assets? How to comply with the laws and regulations of different countries and regions? These issues greatly increase the complexity and cost of bringing real assets into Web3.

In addition, manyThe founding team of the Web3 project itself lacks experience in dealing with traditional financial and real industries. They are better at writing smart contracts and designing token economic models, but know little about how to deal with complex real-world problems. Therefore, they prefer to build a completely independent ecosystem in the virtual world rather than trying to connect to the real world.

2.3.3 Specific harm: It is difficult to establish the confidence of users and investors

Without the support of real assets, it is difficult for a project to build long-term confidence among users and investors. For ordinary users, it is difficult for them to understand those complex value models that are purely based on code and consensus. They are more likely to trust projects backed by physical assets. If the value of a project is entirely based on virtual consensus, once this consensus is broken, their investment will be lost. This huge uncertainty will deter many potential users.

For institutional investors, they have stricter risk control and investment standards. Before investing in a project, they will conduct detailed due diligence on it and evaluate its business model, technical strength, team background and asset status. A project that is not supported by real assets and whose value relies entirely on market speculation is obviously unable to meet the requirements of institutional investors. Therefore, projects that lack real asset landing and docking are difficult to gain the favor of institutional investors, thus limiting the ceiling of their development.

2.4 Incentive mechanism design flaws

The incentive mechanism isThe core of the Web3 project, it determines the behavior of each participant within the project, and ultimately determines the success or failure of the project. However, the current incentive mechanism design of many Web3 projects has serious flaws, leading to conflicts of interest among all parties, imbalance of the game, and ultimately damaging the long-term development of the project.

2.4.1 Failure Mechanism: Conflict of Interest and Game Imbalance

The failure mechanism of incentive mechanism design is that it fails to effectively align the long-term interests of all participants, and may instead induce short-term behavior and malicious behavior. A typical example is “Mine and Dump” behavior. in manyIn the X-to-Earn project, the main purpose of user participation is to obtain token rewards and then immediately sell them on the market in exchange for other more stable assets (such as USDT or ETH). This behavior is harmful to both the project party and other long-term holders. Massive sell-offs can exacerbate token price declines and harm a project’s reputation and long-term value.

When project parties design incentive mechanisms, they often only consider how to motivate users to participate, but ignore how to motivate users to hold and contribute for the long term. For example, the token unlocking mechanism of many projects is improperly designed, and the token lock-up period of early investors and team members is too short, allowing them to sell large amounts soon after the project is launched, causing a huge impact on the currency price. In addition, the governance mechanisms of some projects also have flaws, leaving a small number of“Whale” users can manipulate voting results by controlling a large number of governance tokens, harming the overall interests of the community.

A well-designed incentive mechanism should be able to guide participants to take actions that are beneficial to the long-term development of the project. For example, you can encourage long-term holding by setting a longer lock-up period and a stepped unlocking mechanism; you can link token rewards to users’ contributions (such as content creation, community building, etc.) instead of just simple"Punch-in" behavior is linked; the abuse of power can be prevented by designing a fairer and more decentralized governance mechanism.

2.4.2 Common reason: Ignorance of long-term games and complex human nature

The common reason for the design flaws of incentive mechanisms is that project parties ignore long-term games and complex human nature. When designing incentive mechanisms, many project parties tend to adopt an overly idealized and simplified model, assuming that all participants are rational, well-intentioned, and will focus on the long-term interests of the project. However, in the real world, human nature is complex, and participants have both profit-seeking motives and speculative impulses, and there may also be malicious acts of sabotage.

Project parties often underestimateThe destructive power of “mercenary” users and speculators. These users do not care about the long-term development of the project, they only care about how to get the maximum benefit in the shortest time. They will take advantage of loopholes in the incentive mechanism to grab token rewards through account swiping, cheating, etc., and then quickly leave the market. If the project party fails to design effective preventive measures, these behaviors will seriously damage the economic balance and community atmosphere of the project.

In addition, project parties often ignore the complexity of the long-term game. The life cycle of a project may last for years or even decades. During this process, the market environment, technology trends, and user preferences will all change dramatically. A static and unchanging incentive mechanism is difficult to adapt to these changes. Therefore, the project party needs to design a dynamic and evolvable incentive mechanism that can be adjusted according to the development stage of the project and changes in the external environment.

2.4.3 Specific harms: team internal friction, market manipulation and user loss

The harm of defective incentive mechanism design is manifold. First, it causesTeam internal friction. If the token unlocking mechanism for team members is not designed properly, it may lead to team members gaining a lot of wealth in the early stages of the project and losing the motivation to continue working hard. Or, if the benefits are unevenly distributed among team members, it may cause internal conflicts and power struggles, thus affecting the normal development of the project.

Secondly, it will lead tomarket manipulation. If the governance mechanism is controlled by a minorityControlled by “whales” who may vote to manipulate the rules of the project for their own benefit. For example, they may vote for proposals that are beneficial to themselves, such as issuing additional tokens, reducing handling fees, etc., thereby harming the interests of other users. This kind of market manipulation will seriously undermine the fairness of the market and cause panic and dissatisfaction among users.

Finally, it results inUser churn. If users find that the incentive mechanism of the project is unfair or their interests cannot be protected, they will choose to leave. For example, if a project’s token rewards are primarily distributed by a few"Scientists" and "giant whales" grab, while ordinary users can only get meager benefits, then ordinary users will lose the motivation to participate. The loss of users will weaken the network effect of the project and eventually lead to the failure of the project.defeat.

3. The intrinsic connection between “fatigue” performance and the unsustainability of the value model

The "fatigue" manifestations of Web3 projects, such as declining user participation, excessive yield fluctuations and shortened life cycles of new projects, are not isolated phenomena, but external manifestations of the unsustainability of its underlying value model. There is a profound internal connection between the two and they influence each other, forming a vicious cycle from "fatigue" to "death spiral".

3.1 Value model flaws are the root cause of “fatigue” performance

The unsustainability of the value model is what leads to allThe root cause of "fatigue" manifestations. A well-designed value model should be able to continuously create value for users and effectively capture this value, thereby forming a positive, self-reinforcing growth flywheel. However, the current value models of most Web3 projects have fundamental flaws, such as over-reliance on token inflation and lack of real income support. These shortcomings prevent the project from forming a complete value closed loop, and its growth mainly relies on the continuous injection of external funds rather thanCreation of endogenous value.

This kind ofThe value model of "externally strong but internally capable" may not expose problems in the early stages of the project. Through high incentives and marketing, projects can quickly attract a large number of users and funds, showing a prosperous scene. However, this prosperity is false and fragile. Once the injection of external funds slows down or market sentiment reverses, the inherent problems of the project will explode. Users will find that they can no longer obtain the expected benefits from the project, and may even lose their principal. At this time, "fatigue" symptoms such as declining user participation and excessive fluctuations in yields will appear one after another. Therefore, it can be said The performance of "fatigue" is the "symptom" of the unsustainability of the value model, and the flaws of the value model are its "root cause" 。

3.2 “Fatigue” performance accelerates the collapse of the value model

"Fatigue" performance is not only the result of the unsustainability of the value model, but in turn will accelerate the collapse of the value model. This is a process of mutual influence and mutual aggravation. When user participation begins to decline, the network effect of the project will weaken and the community vitality will decrease, which will make the project less attractive to new users, further aggravating user churn. When yields begin to fluctuate wildly, investor confidence will take a hit and they will choose to sell tokens and withdraw funds, which will further exacerbate the decline in token prices and make it more difficult to finance projects. When the life cycle of new projects becomes shorter and shorter, the speculative atmosphere in the entire market will become stronger, and users and investors will become more short-sighted and impetuous, which makes it more difficult for those long-term projects that are truly valuable to gain support.

These"Fatigue" manifestations work together to form a negative, self-reinforcing "death spiral." In this spiral, every negative event triggers more negative events, eventually leading to the complete collapse of the project. For example,Terra/LUNA crash process, is a typicalCases where “fatigue” manifests itself in accelerating the collapse of the value model. Initially, it may just be the market’s lack of confidence in UST’s anchoring ability.worry (a kind of"fatigue" performance), but this triggered a sell-off in UST, which in turn triggered hyperinflation and price decline in LUNA, ultimately leading to the collapse of the entire ecosystem.

3.3 Interaction mechanism: from “fatigue” to “death spiral”

fromThe evolution process from "fatigue" to "death spiral" is a typical negative feedback loop. This process usually begins with a triggering event, such as an overall market decline, regulatory tightening, or negative news about the project itself. This triggering event will cause the project’s token price to start falling.

The drop in token prices will directly lead to a drop in users’ yields (denominated in legal currency), triggering the first batch of profit-oriented"Mercenary" users are losing. The loss of users will reduce project activity and network value, which will further undermine market confidence and lead to more investors selling tokens.

In order to retain users, the project team may take some emergency measures, such as increasing token rewards, conducting market repurchases, etc. However, these measures tend to aggravate token inflation or consume the project’s already small financial reserves, thereby further deteriorating the project’s financial situation.

As the situation continues to worsen, user panic will spread, and more users will choose to sell their tokens and exit the project. At this point, the project will fall into“Death Spiral”: User churn leads to reduced value, and reduced value leads to more user churn. In the end, the project may reach two endings: one is that the token price returns to zero and the project is completely abandoned; the other is that the project party performs a "restart" and issues new tokens, but the value of the old tokens will no longer exist.

This fromThe process from "fatigue" to "death spiral" profoundly reveals the fragility of the current Web3 value model. It tells us that it is impossible to build a sustainable ecosystem solely relying on token incentives and speculation. Only those projects that can truly create value for users, have real income support, and connect with real-world assets are likely to survive in the fierce market competition and achieve long-term development.

exist The Web3 industry is developing rapidly, but the value model frequently falls into the cycle of "short-term enthusiasm - long-term silence".POLSEmerged at the historic moment, it aims to build a sustainable system with itself as the core and driven by the twin engines of star field staking and deflationary spiral. Web3 economic system. This system breaks the model of traditional DeFi projects relying on short-term income stimulation, and takes "certain income" and "long-term value precipitation" as the core to create a stable and growth potential ecological environment for participants.

Chapter 2 Project overview

1. Project goals and vision

POLSThe core goal is to buildPOLS is the core,Utilizing the MetaverseProven with network effects (PoNE）technicalRWA incubation platform, through star field staking anddeflationary spiral driveaccomplish "Individuals and ecology grow together"sustainableWeb3wisdomeconomysystem.In this ecosystem, every participant is no longer a passive gainer, but a core force in ecological construction. ——Participate in value creation through star field staking, enjoy value appreciation with the help of deflation mechanism, and ultimately form a virtuous cycle of “pledge is contribution, holding is benefit”, promoting the Web3 economy from “disordered competition” to “orderly symbiosis”.

POLS wants to create something that can reinventGlobal real assets (RWA) issuance and circulation paradigm, breaks the inherent barriers of poor liquidity of heavy assets and high participation threshold in the traditional financial system, and builds a smart economic ecology with deep binding and seamless coupling of "on-chain star field - off-chain real scene". This ecosystem not only realizes the value exchange between the digital space and the physical world, but also allows on-chain assets to always resonate with the operating conditions of the offline real economy through real-time data interaction and dynamic equity adjustment.

Through the deep integration of the immersive interactive capabilities of the three-dimensional distributed nodes of the Metaverse,The efficient collaboration mechanism of PoNE network effect consensus and the value stability model of deflationary star field staking,POLSInnovatively transform traditional heavy assets such as real estate, new energy projects, and high-end manufacturing equipment into encrypted native income units with the characteristics of divisible holdings, sustainable iterative upgrades, and community joint governance. This transformation process not only lowers the capital threshold for heavy asset investment, but also ensures the security of rights and interests through transparent on-chain records, ultimately allowing any individual to easily participate and truly realize The inclusive value vision of "owning a star domain on the chain and sharing a share of real economic growth" provides a new path for the digital transformation of global assets that can be implemented and replicated.

2. Investment and operation team introduction

POLS isDepend on Cypher Capital Foundation andPyou're cookingThe community invests and operates together. Cypher Capital Foundation is an investment institution focusing on blockchain technology and financial innovation, with rich industry experience and resources.PThe olaris community isBased in Thailand, with a global presenceA global community of blockchain enthusiasts, Possess strong technical development capabilities and community governance experience. will bePOLSThe project provides solid Financial support and community foundation promote the rapid development of the project.

The Cypher Capital Foundation relies on its accumulation in the fields of Web3 ecological construction and blockchain compliance operations to provide critical financial guarantee and market empowerment for the early stage of the project. As a non-profit entity focusing on the on-chain implementation of real assets (RWA) and the implementation of deflationary economic models, the foundation can not only rely on its own reserve funds to provide stable financial support for project development, smart contract audits and initial liquidity injections, but also rely on its cooperation network in Southeast Asia and the global Web3 field to link the project with strategic partners in the GameFi, NFT and RWA fields, such as new energy project parties, real estate developers, etc., for the subsequent "on-chain star field - off-chain real scene" Coupling lays the resource foundation, attracts the participation of compliant investors, and expands ecological influence and resource pools.

In the process of project advancement, the foundation is also responsible for Role of "Ecological Guardian": At the technical level, relying on the understanding of Binance Smart Chain (BSC) and Layer2 compatible solutions, it provides professional guidance for smart contract architecture optimization and security audit cooperation, helping projects build a "multi-round audit + time lock + multi-signature wallet" security system to reduce technical risks; at the market and compliance level, combinedDubaiand global blockchain regulatory policies, develop compliance operation strategies for projects, and organize online Participate in AMA, offline Meetups and industry exhibitions to build an official community (Telegram、Twitter, etc.) to help projects reach global users, solve the challenges of traffic acquisition and trust building in marketing, and ensure that DAPP 1.0 The initial key nodes such as the launch and the launch of the Genesis Star Field were successfully implemented, laying a solid foundation for the subsequent decentralized transition of the ecosystem.

Polaris community: Symbolizing guidance, stability and reliability，yes"Star of Hope",As a core participant in the ecology, in the global The Web3 user group has formed a circle of influence based on "Star Pledge Contribution", which can provide full-dimensional support for the project from user growth to governance implementation. as withPOLSA community form with deep ecological binding,Polaris community relies on "sprout-symbiosis hierarchy” (quantitative staking duration and referral contribution based on equity value), not only has a large and highly sticky user base – covering everything from “Yinghui” Beginner User to “original” Full-level participants of core contributors can also attract more developers to join smart contract optimization, DAPP function iteration and other work through regularly held community activities such as “Interstellar AMA” and “Star Territory Governance Proposal Seminar”. At the same time, new users can be quickly familiar with the staking rules and revenue mechanism, promote the growth of ecological user scale and activity, and provide user base support for key nodes such as ecological function unlocking.

At the governance level,PThe olaris community is the core force in the transformation of ecological decentralization: with the transformation from the "Star Council" (Phase 2), the top 100 pledgers and Star Alliance level ≥Lin Yu Users composed of) accumulated governance experience, the community can assist the project to gradually improve the governance mechanism ——For example, in the proposal initiation process, core members of the community can propose reasonable proposals such as "Galaxy Constant Adjustment" and "Transaction Tax Rate Optimization" based on the actual operating data of the ecosystem (such as pledge rate, community treasury balance); in the voting execution process, through the collection of opinions and consensus building within the community, ensure that the proposal is in line with the interests of the majority of users and avoid decision-making deviations. This model of "linking contributions to governance rights" not only ensures the transparency and fairness of project governance, but also promotes the development of the ecosystem in a sustainable direction through active supervision by community members (such as fund use disclosure and verification, technical security feedback), laying the foundation for the implementation of Phase 3 "Galaxy Autonomy" (complete community-driven governance).

Chapter 3 Project core innovation and technical architecture

1. Underlying blockchain support technology

1. 1Binance Smart Chain (BSC) underlying architecture

Technology positioning: ecological core underlying blockchain

Core Features: Adopt "PoS+DPoS hybrid consensus mechanism" supports high throughput (thousands of transactions per second), low latency (3-5 seconds transaction confirmation), low gas fees, and is compatible with Ethereum EVM (Ethereum Virtual Machine). It can be directly adapted to mainstream Web3 tools (such as MetaMask wallet, PancakeSwap exchange), lowering the user access threshold.

Application scenario: carrying star domain pledge,The underlying computing and asset storage of core functions such as OTC transactions and dividend distribution are the core technology base in the early stages of the ecosystem.

2. Core function implementation technology

2.1. Modular smart contract system

Technical architecture: The four core contracts of "pledge, OTC, dividends, and transaction tax" operate independently and are logically interoperable.。

Star field pledge contract: responsible for star field level verification, pledge token locking, income calculation and distribution (such as “Yinghui - original” equity differentiation and dynamic cycle execution);

OTC contract: implement the "gravity anchoring" mechanism (dynamic price range control, personal selling limit) to ensure the stability of token transactions;

Dividend contract: connects the community treasury and user wallets, automatically calculates and distributes dividends based on Star Alliance level and pledge amount, and all records are available on the chain;

Transaction tax contract: embedded token transfer logic, automatic withdrawal 25% transaction tax, and "50% treasury + 20% black hole + 30% ecological enginelevel distribution” Proportional distribution。

2.2. Star domain pledge dynamic adjustment technology

Core mechanism:

Dynamic cycle technology: according to ecology The "pledge rate" (total amount of pledged tokens/amount of circulating tokens) automatically adjusts the pledge cycle (for example, shorten the cycle when the pledge rate is <50%, and extend the cycle when it is >80%) to balance token circulation and pledge needs;

Galaxy Constant Adjustment Technology: Every Based on data such as "average pledge rate, treasury balance, user growth rate", etc., the "total output coefficient" of the star field will be automatically adjusted for 120 days, and the sustainability of the system will be ensured through time lock contract execution.

2.3. PoNE (Proof of Network Effect) mechanism technology

Technical implementation:

Interstellar referral reward technology: automatically identify the direct referral relationship through the contract, and pledge the income of the recommended person 5% will be distributed to recommenders simultaneously (only one-level direct recommendation is supported to avoid multi-level risks);

Star Alliance Equity Value Calculation Technology: Real-time Statistics of Users "Pledge contribution (star level + duration)" and "recommendation contribution (number of recommended users + pledge amount)" automatically accumulate equity value and trigger star alliance level promotion (sprout-symbiosis), the equity value data cannot be tampered with on the chain.

2.4. Deflationary economic model technology

Value black hole destruction technology: will The tokens corresponding to the 20% transaction tax are put into the "black hole address" (the address on the chain where the private key is permanently lost), so that the tokens are permanently destroyed and the circulation is reduced., eventually deflation to 50 million coins；

Transaction tax automatic distribution technology: extract the value of each transaction in real time through smart contracts The 25% tax is automatically transferred according to a fixed proportion (50%→community treasury, 20%→value black hole, 30%→ecological engine) without manual intervention.

3. Security technology

3.1. Multiple rounds of authoritative audit technology

Plan to cooperate with top auditing institutions to conduct audits on core contracts "First audit before going online + supplementary audit for major updates" focuses on identifying risks such as logic vulnerabilities, integer overflows, and permission control defects. The audit report is made public to the official community.

3.2. Time lock management technology

Core application: All key contract parameter adjustments (such as star field output ratio, transaction tax rate) and governance proposal execution must be set through the time lock contract≥ 7-day publicity period, which will be automatically executed after there is no objection to the publicity to prevent malicious tampering of parameters.

3.3. Multi-signature wallet technology

Fund management: Ecological core funds (community treasury reserve funds, ecological engine funds) are stored in multi-signature wallets, which require at least 3 managers (foundation + community representative + audit agency) must co-sign before transfer can be made. All transfer records can be checked on the chain to prevent the misappropriation of funds.

3.4. Bug bounty and emergency response technology

Vulnerability bounty program: After going online, white hat hackers from around the world will be invited to test. According to the severity of the vulnerability (high-risk / medium risk / low risk) providedPOLS Token rewards (highest risk 10,000 pieces), transparently managed through the HackerOne platform;

Emergency suspension technology: The security emergency team can quickly suspend core functions such as staking and trading through contracts, and at the same time transfer funds to safe addresses to deal with hacker attacks or vulnerability risks.

4.  Ecological expansion and interactive technology

4.1. Layer2 compatibility and cross-chain technology

Layer2 adaptation technology: initially compatible with BSC Layer2 (OpBNB), migrating high-frequency operations (staking, dividends) to Layer2, reducing transaction costs to 1/10 of the BSC main network;

Cross-chain interoperability technology: mid-term passed Cross-chain protocols such as Axelar and LayerZero realize "star domain rights interoperability and cross-chain token transfer" with Layer 2 networks such as Avalanche Arbitrum and Polygon zkEVM, breaking the Layer 2 island;

Modular blockchain adaptation technology: long-term planning adaptation Celestia (data availability layer) and EigenLayer (heavy pledge layer) split "data storage" and "computing execution" to improve performance and asset reusability.

4.2. NFT and RWA bridging technology

star field NFT identity system technology: generates a unique NFT bound to the Star Alliance level, supports pledge dividends, governance voting bonuses, and can be traded on platforms such as OpenSea;

RWA bridging technology: Phase 3 (2026 H2) is launched. Through off-chain asset mapping technology, offline heavy assets (new energy project shares, real estate property rights) are converted into “encrypted native income units” that can be pledged on the chain, achieving data synchronization and equity interoperability of “on-chain star field – off-chain real scene”.

4.3. Decentralized governance technology

On-chain voting technology:Phase 2 starts the Star Council voting, and the weight of user voting is linked to the amount of pledges and the Star Alliance level, and the voting process is recorded on the chain; Phase 3 achieves complete on-chain autonomy, and the Star AllianceSenluo Users above can initiate proposals and automatically execute voting results through time lock contracts.

Chapter 4POLS Token Economics: Deflationary Spiral and Value Black Hole

1. Token distribution:500 million piecesPOLS The creation allocation and release mechanism of

POLS The total genesis supply of 500 million coins, adopting the principle of "fair distribution and slow release" to avoid the risks of "early large investors smashing the market" and "too high a concentration of tokens" to ensure long-term ecological stability. The specific allocation plan is as follows:

2. “Energy cycle” system (25% transaction tax): a redistribution mechanism of ecological value

POLSdesign 25% transaction tax acts as an “energy cycle” system by taxing each transaction andCompareExample allocation, implementation With the goal of “curtailing speculation, rewarding long-term holdings, and supporting ecological construction”, the specific distribution rules are as follows:

50% → Community Treasury (driving network effects):This part of the funds is used forStar Domain AgreementReferral rewards, star alliance dividends and ecological emergencies are The core funding source of the PoNE mechanism. By continuously injecting funds, we can ensure the continuous enhancement of network effects and attract more users to participate.

20% → Black hole of value (permanent destruction, driving deflation):This part of the tokens will be permanently destroyed and directly reduced The total circulation of POLS,Eventually deflation reaches50 million pieces to enhance scarcity. For example, a transaction pays 250 coins of transaction tax, 50 of which will be put into a "black hole address" (an address where the private key is permanently lost) and will never be circulated. As the amount of destruction increases,POLSThe number of circulating tokens will gradually decrease. As long as the demand remains unchanged, the value of a single currency will gradually increase, forming a "Deflationary Spiral" rewards long-term holding users.

30% → Ecological engine (protocol development, market operation and liquidity):This part of the funds is used for the long-term development of the ecosystem, including:

Project contributors(15%):Smart contract upgrade,Layer2 compatibility, cross-chain function research and development and other technical investments.

foundationoperations(7%): Global community building (such as holding online AMA, offline meetup), brand promotion (such as industry exhibition participation, KOL cooperation).

Market value management and ecological funds(8%)：Carry out token market value management,Improve token liquidityand the value of the token。Ecological funds are grafted onto real-world industries.

3. Long-term value analysis: a dynamic equilibrium model between deflation and output

POLS The value of tokens does not rely on a single deflation or output, but through The dynamic balance between "deflation mechanism (destruction)" and "output mechanism (pledge income)" achieves stable long-term value growth. Its core logic is as follows:

short term equilibrium (Within 1 year): In the early stage of the ecosystem, pledge output (such as creation pledge rewards,Yinghuioutput) is large, but transaction activity is low and the amount of destruction is relatively small. At this time "Output > Destruction", the token circulation slowly increases. However, since initial users are mainly "long-term pledges", the actual amount of tokens circulating in the market is limited, and the dividend mechanism of the community treasury attracts users to hold tokens, so the price of tokens will not fall sharply due to output, but will gradually rise due to the growth of ecological users.

mid-term equilibrium (1-3 years): As the ecosystem matures and transaction activity increases, the amount of destruction (20% transaction tax) increases significantly; at the same time, Galaxy Constant will dynamically adjust the output coefficient according to the pledge rate. When the pledge rate is too high, the output will be reduced. At this time, "destruction ≥ output", the token circulation will enter a stable period or slowly decrease. The deflation mechanism begins to dominate the value of tokens. The price of a single currency increases steadily with the increase in the amount of destruction. At the same time, the attraction of Star Alliance dividends increases, and more users choose to hold pledges for a long time, further reducing the market circulation and forming a positive cycle of "deflation - price increase - increased willingness to hold".

long-run equilibrium (More than 3 years): The ecosystem has entered a stable period, and the user scale, pledge rate, and transaction activity have all remained at a high level. At this time, the Galaxy Constant will accurately adjust the ratio of output and destruction to ensure that "output ≈ destruction" and the token circulation is basically stable. However, as the ecosystem has realized cross-chain compatibility, RWA bridging and other functions, the application scenarios of the token have been greatly expanded (such as for RWA asset purchase, GameFi item exchange), and the demand continues to grow. Under the condition of "stable supply and growing demand", the value of tokens will achieve long-term and sustainable growth and truly become the "value carrier" of the ecosystem.

Chapter 5 bornstateGrowth and Galaxy Governance

1. Exploration permissions: Star field level unlocking and community-based Big Bang (ecological unlocking)

POLS pass The "exploration permissions" mechanism guides users to gradually delve deeper into the ecosystem. At the same time, it uses "community scale" as a trigger to unlock new ecological functions and achieve "synchronization of user growth and ecological expansion":

Star field level unlock: high-level star field (such asStardust、original) needs to meet specific conditions (such as Star Alliance level, number of referrals) to be unlocked. This kind of The "stepped unlocking" design not only prevents new users from directly participating in high-risk, high-threshold staking, but also encourages users to obtain higher permissions by "increasing contribution", forming a user growth path of "exploration - contribution - unlocking higher permissions".

Big Bang (ecological unlock):POLS Combining the unlocking of ecological functions with "Community scale" hook, when the community reaches the specified scale, the "Big Bang" is automatically triggered and new features are unlocked. The specific rules are as follows:

The first big explosion: when the total number of ecological pledge users reaches When there are 10,000 people, the "Star NFT Identity System" (Phase 2 content) is unlocked and a unique Star NFT is generated for each user. The NFT level is bound to the Star Alliance level and can be used for governance voting, dividend bonuses, etc.

The second big explosion: when the total ecological pledge amount reaches 100 million piecesPOLS when, unlock "Cross-chain staking function" allows users to pledge star domains on Layer 2 networks such as OpBNB and enjoy lower-cost and more efficient operations.

The Third Big Bang: When the Covenant Senluo and above users reach At 1,000 users, the "RWA Bridge Beta" is unlocked, allowing users toPOLS Pledge and exchange some offline heavy assets (such as new energy project shares) to achieve "On-chain - off-chain asset interoperability".

2. POLS The road to the stars of governance: guiding from foundations to complete decentralization

POLS The governance system follows The principle of "progressive decentralization" gradually transfers governance rights to the community in three stages to ensure the fairness and sustainability of ecological decision-making:

Stage one:POLS Foundation guidance (Phase 1 - 2025 Q4 to 2026 Q1): In the early stage of the ecology, due to the small scale of the community and the unfamiliarity of users with the rules, the governance rights are determined byPOLS Foundation-led. The foundation is responsible for formulating initial star field parameters, transaction tax rates, unlocking conditions and other rules, and at the same time organizing community opinion collection (such as official Discord voting, AMA Q&A), and adjust decisions based on community feedback. The core goal of this stage is to "stabilize the startup ecosystem and build user trust."

Phase 2: Star Council (based on POLS Community voting for pledged amount) (Phase 2 - 2026 Q1 to 2026 Q4): When the total number of ecological pledge users reaches 5,000, the "Star Council" governance model will be launched. The members of the Star Territory Parliament are composed of “the top 100 pledgers and Star Alliance level ≥Lin Yu” Users automatically assume the role and have the right to propose and vote; ordinary users can obtain corresponding voting weights based on their pledge amount (for example, pledge 1,000POLS get 1 vote, staking 10,000 coins to get 10 votes) to vote on proposals put forward by the parliament. The proposal includes the adjustment of the galactic constant, the use of community treasury funds, the launch of new functions, etc., and needs the support of more than 50% of the voting weight to pass. The core goal of this stage is “to allow core members of the community to participate in governance and gradually decentralize”.

Phase 3: Galaxy Autonomy (fully community-driven decentralized governance) (Phase 3 and beyond - 2026 Q4 onwards): When the ecosystem achieves cross-chain compatibility and the RWA bridging function is online, it will enter the "Galaxy Autonomy" stage. At this time, the foundation completely hands over governance rights, and all decisions are completed by the community through “on-chain voting”:

Proposal initiated: Any Covenant level≥Senluo Users of can initiate proposals, which require a certain amount of POLS As a deposit (if the proposal fails, part of the deposit will be destroyed and part injected into the treasury to prevent malicious proposals).

Voting rules: all pledges POLS All users can vote, and the voting weight is linked to the amount of pledges and Star Alliance level (the higher the Star Alliance level, the greater the weight bonus). The voting period is 7 days.

Execution mechanism: Proposals passed by voting are automatically executed by the time lock contract without the intervention of any centralized entity. The core goal of this stage is to "Achieve complete decentralization and allow the ecology to be independently managed and developed by the community."

3. Interstellar Diplomacy: With Cooperation and integration blueprint for GameFi, NFT and other ecosystems

to broaden POLS application scenarios to enhance the use value of tokens,POLS Planned The “Interstellar Diplomacy” strategy is to carry out in-depth cooperation with Web3 ecosystems such as GameFi and NFT. The specific blueprint is as follows:

and GameFi ecological cooperation: star field theme game integration:

Direction of cooperation: with the head Cooperate with the GameFi project to develop a "star field themed" game module. For example, adding "POLS Star map”, users can usePOLS Tokens can be used to purchase game props (such as starships, weapons) or obtain them by completing game tasks. POLS award.

Equity exchange: character levels and prop assets in the game can be exchanged with POLS The Star Alliance level, star domain NFT hook. For example, users who reach the "Star Warrior" level in the game can automatically unlockPOLS mature star field staking authority; game props "Legendary Battleship" is available asPOLS Primeval Star Territorypledge certificates to enjoy additional income bonuses.

and NFT ecological cooperation: Starfield NFT diversified applications:

NFT issuance: After the "Star NFT Identity System" is launched in Phase 2, we will cooperate with well-known NFT artists to issue "Limited Edition Star NFT" (such as the "Cosmic Explorer" series, "originallord" series). This type of NFT not only has collection value, but can also be used as a pledge certificate (such as holding "originallord”

NFT, can be unlocked directlyoriginalPledge authority).

NFT pledge and dividend: Support users to pledge Starfield NFT toPOLS Eco, get extra POLS Dividends.The higher the NFT level, the more pledge dividends; at the same time, NFT can be freely traded on platforms such as OpenSea, forming a closed-loop ecosystem of "NFT casting - pledge dividends - transaction circulation".

and RWA ecological cooperation: on-chain - off-chain asset interoperability:

Initial exploration (Phase 3): Cooperate with local new energy projects and real estate developers in Thailand to convert offline heavy assets (such as solar power plant shares, apartment property rights) into "on-chain RWA assets." Users can pledgePOLS Tokens, redeem accordingly RWA asset share, enjoy the income from offline assets (such as power station power generation income, apartment rental).

Long-term layout: gradually RWA cooperation has expanded globally, covering areas such as high-end manufacturing (such as the share of chip production equipment) and artworks (such as the division of ownership of famous paintings), allowingPOLS become "The circulation medium of RWA assets on the chain" truly realizes the vision of "owning a star field on the chain and sharing a share of real economic growth".

Chapter 6 POLS income support: using technology and mechanisms to realize the closed-loop incubation income of physical assets RWA bear value

1. Reshape RWA issuance and circulation paradigm breaks the inherent barriers of traditional heavy assets

Targeting heavy assets such as real estate, new energy projects, and high-end manufacturing equipment under the traditional financial system To overcome the pain points of "poor liquidity and high participation threshold", POLS uses the hierarchical design of the Star Zone Pledge Agreement (from "Yinghui" to the "original" 6-level system) to dismantle high-value heavy assets into "encrypted native revenue units" adapted to different users: the entry-level "Yinghui" only requires a low amount of POLS pledge (small participation threshold), allowing ordinary users to indirectly hold shares of heavy assets; mid- to high-level "Xiguang"Original" corresponds to large-amount heavy-asset rights and interests, meeting the needs of professional investors. This "divisible holding" feature completely breaks the threshold limit of "million-level starting investment" for traditional heavy assets. At the same time, relying on the high liquidity foundation of Binance Smart Chain (BSC), the on-chain rights and interests corresponding to RWA can be conveniently circulated through OTC contracts or exchanges, solving the liquidity dilemma of "difficult to change hands" of heavy assets.

2. build "Star field on the chain - real scene off the chain" seamlessly coupled smart economic ecology

POLS creates an ecological closed loop of "on-chain records - offline linkage": on the one hand, offline heavy asset operation data (such as new energy power station power generation, real estate rental income) are synchronized to the chain through real-time data interaction, and combined with the "Galaxy Constant" to achieve "dynamic equity adjustment" - when the offline asset income increases, the pledge dividend ratio of the corresponding star field is simultaneously optimized to ensure that the value of the assets on the chain resonates with the operating conditions of the real economy; on the other hand, Phase 3 (2026) H2) The "RWA bridge beta version" will be launched. Users can directly exchange offline heavy asset shares (such as the rights and interests of local new energy projects in Thailand) by staking the star field on the chain to realize "digital

The value exchange between word space and the physical world”, rather than simply on-chain symbolization, making the “on-chain star field” a real value carrier that links physical assets.

3. The integration of multiple technologies and mechanisms drives the transformation of heavy assets into crypto-native units

POLS ensures the "sustainability, synergy and stability" of heavy asset transformation through the deep integration of three core technologies and mechanisms:

Immersive interaction of three-dimensional distributed nodes in the Metaverse: combined with Metaverse scene design, The on-chain star field corresponding to RWA provides immersive visual interaction - users can intuitively view the real-time status of heavy assets held through three-dimensional nodes (such as the operation data of high-end manufacturing equipment, the spatial layout of real estate), enhance the "real-life perception" of on-chain rights and interests, and solve the experience pain point of "disconnection between the on-chain and off-chain" of traditional RWA projects;

Efficient collaboration of PoNE network effect consensus: Relying on the "network effect proof" mechanism, attracting more users to participate in RWA staking through "interstellar referral" (5% direct recommendation reward), while "star alliance governance" (budding-symbiosis grade system) allows users with different asset-heavy rights and interests to form a collaborative community - for example, star domain holders corresponding to new energy projects can jointly decide asset operation strategies through star alliance voting, achieving "community common governance";

The value of deflationary star field staking is stable: with the help ofWith the "value black hole" mechanism (20% transaction tax is permanently destroyed) and the "dynamic balance model", the on-chain equity unit (star domain) corresponding to RWA can achieve value anchoring through deflation - with the appreciation of offline heavy assets and the destruction of on-chain tokens, the unit value of the star domain increases simultaneously, avoiding the risk of "price and asset value deviation" of traditional RWA tokens, and ensuring the stability of the value of the converted equity.

4. Implement inclusive value and provide RWA digital replicable path

The innovation of POLS ultimately points to the inclusive vision (core value orientation) of "allowing any individual to own the star field on the chain and share the growth of the real economy": on the one hand, it reduces the difficulty of individual participation through "low threshold participation + transparent guarantee" - clear "multiple rounds of smart contract audits" and "checkable records on the chain" to ensure the safety of ordinary users' rights and interests; on the other hand, the "development roadmap" clearly plans the pace of implementation of the RWA ecosystem: from Phase 1 (2025) Q4) Build the star domain staking foundation, improve community governance in Phase 2 (2026 Q1-Q2), and then launch the RWA bridging test in Phase 3 (2026 H2), forming a progressive path of "basic construction - ecological improvement - asset docking". This path can be reused for different types of heavy assets (such as expanding from new energy to global real estate and high-end manufacturing), providing a "referenceable and replicable" template for global RWA digitalization, and promoting the deep integration of the real economy and the Web3 ecosystem.

Chapter 7 development route:Our journey to the stars

The development of POLS is divided into three core stages, each stage has clear goals and milestones to ensure the steady advancement of the ecology and gradually realize the vision of a "sustainable Web3 economic system":

Phase 1: "The First Spark" (2025 Q4) - Ecological startup and infrastructure construction

Core goals: Complete ecological infrastructure construction, attract the first batch of users to participate, and verify the feasibility of the pledge agreement and economic model.

Key Milestones:

Go online The YaMeng version of DAPP supports the staking function from "Yinghui" to "Yuanchu", and launches the genesis staking reward activity (495 million POLS are used to reward early staking users).

established POLS official community (Discord, Twitter, Telegram) completed the recruitment of the first batch of community members (target 1,000 people), held an online AMA event, and introduced the ecological vision and rules.

Start multi-signature wallet and time lock management, and transfer the initial funds of the community treasury (0.5 billion POLS) will be injected to ensure the normal distribution of interstellar referral rewards and dividends.

Phase 2: "Star Chain Network" (2026 Q1-Q2) - Ecological expansion and governance start

Core goals: expand user scale, initiate community governance, and go online NFT and cross-Layer2 functions enhance ecological stickiness.

Key Milestones:

When the total number of staking users in the community reaches When there are 10,000 people, the "First Big Bang of the Universe" is triggered, and the "Star NFT Identity System" is launched to generate unique Star NFTs for users and support NFT staking and dividends.

Complete with Compatible with BSC Layer2 (OpBNB), high-frequency operations such as staking and dividends will be migrated to Layer2, reducing user transaction costs.

start up The "Star Council" governance model consists of the top 100 users with a Star Alliance level of ≥ Lin Yu. It begins to accept community proposals (such as Galaxy Constant adjustment, new star domain launches).

and 1-2 GameFi projects have reached cooperation and launched the "Star Zone Theme" game module, allowing users to use POLS tokens to purchase game props and obtain game rewards.

Launch a bug bounty program, invite white hat hackers to test ecological security, and provide the highest Bug bounty of 10,000 POLS.

Phase 3: "Interstellar" (2026 H2) - Cross-chain and RWA layout, moving towards decentralization

Core Goal: Achieve cross-chain interoperability, explore RWA bridges, completes the decentralization of governance, and builds POLS into an "ecological platform for on-chain and off-chain asset interoperability".

Key Milestones:

Complete with It is compatible with Layer2 solutions such as Avalanche Arbitrum and Polygon zkEVM, and realizes the interoperability of star domain rights and cross-chain token transfers between different Layer2 networks through cross-chain protocols (such as LayerZero).

When the Covenant Senluo and above users reach When 1,000 people are involved, the "Third Big Bang" is triggered, the "RWA Bridge Beta" is launched, cooperates with local new energy projects in Thailand, and supports users to exchange offline asset shares through POLS pledge.

Enter In the "Galaxy Autonomy" stage, the foundation completely hands over governance rights, all proposals are decided by the community through on-chain voting, and the execution mechanism is completely decentralized.

Complete with Cooperate with 2-3 NFT platforms to issue "limited edition star field NFT", support NFT transactions on platforms such as OpenSea, and form an NFT ecological closed loop.

Publish an annual ecological report, disclose data on fund use, user growth, technology progress, etc., accept community supervision, and plan for the next stage (2027) development goals (such as global RWA cooperation expansion, modular blockchain adaptation).

Chapter 8 Risk Management and Compliance Statement

1. Technology Risk Mitigation: Smart Contract Audits, Bug Bounty Programs and Emergency Response

although POLS Several rounds of audits and other security measures have been taken, but The Web3 industry still has technical risks such as smart contract vulnerabilities and hacker attacks. to this end,POLS A comprehensive risk mitigation plan has been developed:

Smart contract audit:andCooperate with authoritative audit institutions to conduct multiple rounds of audits on core contracts. Audit content includes but is not limited to: contract logic loopholes, integer overflow / Underflow, permission control flaws, re-entrancy attack risks, etc. After the audit is completed, the full text of the audit report will be made public to the official GitHub and the community to accept user supervision. If a vulnerability is found in the audit, the development team will be immediately organized to repair it and re-audit after the repair to ensure that the contract is risk-free before going online.

Bug Bounty Program: in DAPPsprout After going online, start The "Bug Bounty Program" invites white hat hackers (security researchers) from around the world to participate in ecological security testing. Provide different amounts of compensation based on the severity of the vulnerability (such as high risk, medium risk, low risk)POLS Token rewards (high-risk vulnerability rewards can be up to 10000 piecesPOLS). The vulnerability submission and review process is completely transparent, through official vulnerability platforms such as HackerOne) to ensure fairness and justice.

Emergency response mechanism: established The "Security Emergency Team" is composed of core developers, audit agency representatives, and community security experts, and is on call 24 hours a day. When emergencies such as smart contract vulnerabilities and hacker attacks occur, the emergency team will immediately activate the plan:

Suspend contract function: suspend core functions such as staking and trading through time lock contracts to prevent losses from expanding.

Asset transfer: If fund security is involved, immediately transfer the funds in the community treasury and ecological engine to a safe address through the multi-signature wallet.

Vulnerability repair: Organize the development team to repair the vulnerability urgently. After the repair is completed, it will be verified by the audit agency and the contract will be restarted after the safety is confirmed.

Community notification: timely through the official Twitter, Discord and other channels inform the community about the progress of the incident, explain the risk situation and countermeasures, and avoid the spread of rumors.

2. Economic model risk control:OTC “Gravity Anchoring” Mechanism and Personal Selling Limit

to prevent Economic model risks such as "violent fluctuations in token prices" and "large selling impact on the market",POLS Two major risk control mechanisms are designed:

• OTC “Gravity Anchoring” Mechanism:POLS of The OTC contract will dynamically set the price range of OTC transactions based on the three core indicators of "ecological pledge rate", "community treasury balance" and "average market transaction price", forming a "gravity anchor".

• Personal Selling Limit: To prevent “Heavy selling caused prices to plummet,”POLS Set an upper limit for a user's single-day sales volume, and the limit is linked to the user's Star Alliance level。Cumulative sales volume of a single account ≤ OTCCumulative buying volume3x.

3. Legal entities and compliance framework

POLS We attach great importance to compliance and ensure that ecological operations comply with global laws and regulations and protect the rights and interests of users by clarifying legal entities and formulating compliance statements:

Legal entity:POLS Foundation (registered in Thailand):POLS The foundation is a non-profit entity legally registered in Thailand. The registered address and relevant legal documents have been published on the official website. The core responsibilities of the Foundation include:

Supervise the initial development of the protocol: formulate initial ecological rules and coordinate the relationship between the development team and the community.

Management of community treasury: Responsible for the compliant use of community treasury and ecological engine funds, and regular release of fund use reports.

Promote compliance: Communicate with regulatory agencies in Thailand and other regions around the world to ensure POLS operates in compliance with local laws and regulations, such as anti-money laundering (AML), customer identification (KYC) and other requirements (if local regulatory requirements).

Compliance Statement:

POLS The protocol is open source, decentralized software, and its core code has been uploaded to GitHub, anyone can view, audit, and use it, but must comply with the agreement's open source license (such as the MIT license).

POLS Tokens are utility tokens and are used only for access POLS Ecological services (such as pledge, governance, dividends) do not have the attributes of financial instruments such as securities and futures, and do not promise any fixed income.

User participation POLS Before participating in the ecology, you should understand and abide by the laws and regulations of your location to ensure that your participation is legal and compliant. If the laws and regulations of the user's location prohibit participation in cryptocurrency-related activities, please do not use it. POLS services.

participate POLS There are certain risks in the ecosystem (such as technical risks, market risks, regulatory risks). Users need to evaluate the risks themselves and bear full responsibility for their own participation and asset security.POLS The foundation and development team are not responsible for any losses caused by user participation.

Chapter 9 Join our galactic expedition

POLS Ecology: a design for long-term value

exist At a time when the Web3 industry is full of short-term speculation and value-neutralizing projects,POLS by With "long-term value" as the core, we have built an ecological system of "technical security, economic sustainability, and fair governance":

Technically: with Based on BSC, it ensures the security and scalability of the ecosystem through multiple rounds of authoritative audits, time lock management, and multi-signature wallets. In the future, it will be compatible with Layer 2 and cross-chain protocols to reserve technical space for ecological expansion.

Economically: with The "deflation spiral + PoNE mechanism" is a dual engine that drives deflation through the destruction of 20% transaction tax, and rewards long-term participation through the community treasury to achieve a "dynamic balance of output and destruction" to ensure long-term stable growth of token value.

Governance: follow The principle of "progressive decentralization", guided by the foundation, to the Star Territory Council, and then to complete galaxy autonomy, allows the community to gradually take control of ecological decision-making rights and ensure that ecological decisions are in the interests of the majority of users.

POLS The goal is not to become a "Short-term money-making tool", but to create a "sustainable Web3 economic ecology", allowing every participant to share the long-term value of ecological growth through staking, governance, and promotion, and achieve "common growth of individuals and the ecology."

appendix:

Interstellar Glossary