ROTOR
ROTOR

01  Introduction

A decentralized automated liquidity engine on Robinhood Chain

Rotor is built around an elastic token supply. ROTOR is burned whenever a Blade NFT is minted, emitted linearly to Blade holders, and is bought back and burned by the protocol using accrued fees, so the circulating supply is governed autonomously by the protocol rather than any manual decision.

Robinhood Chain is an Ethereum Layer 2 built on Arbitrum, where gas is paid in ETH at a fraction of mainnet cost, which keeps minting, claiming and trading inexpensive.

  • TokenROTOR
  • Starting supply10,000,000
  • Circulating at launch50%
  • NFTBlade, 10 ROTOR
  • Buy tax0%
  • Sell tax3%
  • Claim tribute20% in ETH
  • Claim decay15% of fragments claimed
  • Mint fee15 USDG flat

02  Start here

How the engine works

  1. Burn to mintHolders burn ROTOR to mint Blades, and every mint permanently removes that ROTOR from circulation.
  2. EmitEach Blade pays a daily ROTOR reward that is minted as it is emitted, proportional to the amount burned to create it, and the rate halves every 25,000 Blades minted.
  3. Decay on claimEvery claim burns 15% of the fragments it is claimed against, while holders who compound instead of claiming keep every fragment.
  4. Route fees to liquidityA 3% sell tax is split evenly, 1% each, between the liquidity pool, USDG payouts to Blades and the stability fund, and a 20% tribute paid in ETH on each claim funds Treasury buybacks.
  5. Trade freelyBlades trade on OpenSea from the moment they are minted, with no lockups and no in-house marketplace, though any unclaimed rewards are forfeited to the Treasury when a Blade moves.

Mint and claim loop

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flowchart TD
  A[Buy ROTOR] --> B[Burn to mint<br/>Blade]
  B --> C[Daily<br/>emissions]
  C --> D[Compound<br/>no fee]
  D --> B
  C --> E[Claim<br/>20% tribute<br/>burn 15% fragments]
  E --> F[Treasury<br/>buybacks]

Sell tax routing

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flowchart TD
  S[Sell ROTOR<br/>3% tax] --> L[1% LP]
  S --> U[1% NFT]
  S --> F[1% fund]
  F --> T[Treasury]

Every path through the engine either burns ROTOR, deepens liquidity or pays holders, and the only value that leaves the loop is the ETH tribute, which returns as buybacks.

PreviousIntroduction

03  Protocol

Blades

A Blade is minted by burning ROTOR, and fragments are the unit that earns. The Curl is the base tier at 1,000 fragments for 10 ROTOR, and every tier above it is a multiple of the ones below, so a Vortex is five Curls, a Maelstrom is two Vortexes and so on up to the Gyre at 100,000 fragments. This is also what the protocol combines when it fuses a holding into a higher tier. The protocol can fuse lower tiers into higher ones automatically or split a holding when a holder wants to sell part of it.

ROTOR burned per tierA Curl costs 10 ROTOR for 1,000 fragments. Higher tiers are multiples.
Curl Curl: 10 ROTOR 10 Vortex Vortex: 50 ROTOR 50 Maelstrom Maelstrom: 100 ROTOR 100 Cyclone Cyclone: 250 ROTOR 250 Jetstream Jetstream: 500 ROTOR 500 Gyre Gyre: 1,000 ROTOR 1,000
  • Curl1,000 fragments
  • Vortex5 Curls, 5,000 fragments
  • Maelstrom2 Vortexes, 10,000 fragments
  • Cyclone5 Vortexes, 25,000 fragments
  • Jetstream2 Cyclones, 50,000 fragments
  • Gyre2 Jetstreams, 100,000 fragments

There are no monthly fees. Minting carries a flat creation fee of 15 USDG per transaction regardless of how many Blades are minted in it, plus gas in ETH.

Fragments pay daily ROTOR along with a share of the USDG allowance, and every ROTOR claim burns 15% of the fragments it is claimed against, as described under Claim decay.

No lockups

Blades are standard NFTs on Robinhood Chain and can be listed on OpenSea from the second they are minted, so there is no in-house marketplace to learn or trust. Lockout periods force holders to burn tokens for an asset they cannot sell and then trap them until the window ends, which is why Rotor has none. A Blade is worth its market value at all times, and its holder can exit whenever they choose.

PreviousHow the engine works

04  Protocol

Tokenomics

ROTOR launches with a starting supply of 10,000,000 and no hard cap, because rewards are minted as they are emitted. Half of that starting supply, 5,000,000 ROTOR, is held by the Treasury rather than circulating, and is reserved for future ecosystem incentives. Against that, every Blade mint burns 10 ROTOR, every claim burns 15% of the fragments it is claimed against, and the protocol buys back and burns more using accrued fees, so the supply moves in both directions and settles wherever those flows balance.

Where ROTOR goes

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flowchart TD
  M[Mint Blade<br/>burn 10 ROTOR] --> G[Burned<br/>forever]
  E[Emissions<br/>minted daily] --> C[Claim<br/>20% ETH tribute]
  C --> S[Burn 15%<br/>of fragments]
  C --> T[Treasury]
  T --> B[Buyback<br/>and burn]
  B --> G
  • Starting supply10,000,000 ROTOR
  • Circulating at launch5,000,000 ROTOR, 50%
  • Treasury reserve5,000,000 ROTOR for ecosystem incentives
  • Burned per Blade minted10 ROTOR
  • Daily reward per Curl0.10 ROTOR at launch, in full
  • Halvingevery 25,000 Blades minted
  • Claim tribute20% in ETH, no token cut
  • Claim decay15% of fragments claimed against
  • Buy tax0%
  • Sell tax3%, can only go down
Daily reward per CurlThe rate halves every 25,000 Blades minted. Holders receive it in full.
0.000 0.025 0.050 0.075 0.100 0 25 50 75 100 125 150 Blades minted (thousands) ROTOR / day At 0k minted: 0.1000 ROTOR/day At 25k minted: 0.1000 ROTOR/day At 25k minted: 0.0500 ROTOR/day At 50k minted: 0.0500 ROTOR/day At 50k minted: 0.0250 ROTOR/day At 75k minted: 0.0250 ROTOR/day At 75k minted: 0.0125 ROTOR/day At 100k minted: 0.0125 ROTOR/day At 100k minted: 0.0063 ROTOR/day At 125k minted: 0.0063 ROTOR/day At 125k minted: 0.0031 ROTOR/day At 150k minted: 0.0031 ROTOR/day

Every Blade mint burns the full 10 ROTOR paid for it, while rewards are minted as they are emitted. A Curl earns 0.10 ROTOR a day at launch and receives it in full, because the tribute on claiming is paid separately in ETH and takes nothing out of the tokens themselves. That rate halves every 25,000 Blades minted, so it is 0.05 after the first 25,000, 0.025 after 50,000 and so on down the schedule. On top of the halving schedule, every claim burns 15% of the fragments it is claimed against, so the base that emits shrinks the more the community claims.

The declining emission schedule is deliberate, because projects that overpromise rewards eventually lose control of their supply. The Treasury exists to prevent that outcome: it receives a 20% tribute on every claim, paid in ETH, and uses those funds to buy back ROTOR, cover operations and finance future additions to the engine.

PreviousBlades

05  Protocol

Claim decay

What a fragment is

A fragment is the unit that earns, and a holding is a fragment balance rather than a fixed object. Minting a Curl creates 1,000 fragments and every tier above it creates a multiple of that, up to 100,000 for a Gyre. Rewards are paid per fragment, so a balance of 613 fragments earns 613 thousandths of what a full Curl earns, and two balances of the same size always earn the same amount regardless of which tier they were minted as.

How decay works

Every claim burns 15% of the fragments it is claimed against. The rate paid per fragment never changes, so what shrinks is the balance itself, immediately and permanently. A holder who has claimed ten times is left with roughly a fifth of the fragments they started with, while a holder who has never claimed still holds all of them.

fragments after n claims = fragments held × 0.85n

The rate paid per fragment is set by the halving schedule and does not change when you claim.

A Curl, claimed repeatedly

Starting from a freshly minted Curl of 1,000 fragments, each claim takes 15% of whatever is left at that moment.

  • At mint1,000 fragments
  • After 1 claim850 fragments, 150 burned
  • After 2 claims722 fragments
  • After 3 claims613 fragments
  • After 5 claims442 fragments
  • After 10 claims194 fragments

The 613 fragments left after three claims are an ordinary balance from that point on. They earn what any other 613 fragments earn, and they can be sold as they are.

Fragments remaining after claimsEach claim burns 15% of the fragments it is claimed against.
0 25 50 75 100 0 5 10 15 Claims made % of fragments held After 0 claims: 100.0% of fragments remain After 1 claims: 85.0% of fragments remain After 2 claims: 72.2% of fragments remain After 3 claims: 61.4% of fragments remain After 4 claims: 52.2% of fragments remain After 5 claims: 44.4% of fragments remain After 6 claims: 37.7% of fragments remain After 7 claims: 32.1% of fragments remain After 8 claims: 27.2% of fragments remain After 9 claims: 23.2% of fragments remain After 10 claims: 19.7% of fragments remain After 11 claims: 16.7% of fragments remain After 12 claims: 14.2% of fragments remain After 13 claims: 12.1% of fragments remain After 14 claims: 10.3% of fragments remain After 15 claims: 8.7% of fragments remain 9

The chart below follows one position for 24 months under three claiming habits. A holder who never claims keeps every fragment, a monthly claimer is down to about 2% of their fragments by month 24, and a weekly claimer burns through almost the entire position inside the first half year.

Fragments remaining over 24 monthsOne position under three claiming habits, at four claims a month for the weekly case.
0 25 50 75 100 0 6 12 18 24 Month % of fragments held Never claims, month 0: 100.0% of fragments Never claims, month 1: 100.0% of fragments Never claims, month 2: 100.0% of fragments Never claims, month 3: 100.0% of fragments Never claims, month 4: 100.0% of fragments Never claims, month 5: 100.0% of fragments Never claims, month 6: 100.0% of fragments Never claims, month 7: 100.0% of fragments Never claims, month 8: 100.0% of fragments Never claims, month 9: 100.0% of fragments Never claims, month 10: 100.0% of fragments Never claims, month 11: 100.0% of fragments Never claims, month 12: 100.0% of fragments Never claims, month 13: 100.0% of fragments Never claims, month 14: 100.0% of fragments Never claims, month 15: 100.0% of fragments Never claims, month 16: 100.0% of fragments Never claims, month 17: 100.0% of fragments Never claims, month 18: 100.0% of fragments Never claims, month 19: 100.0% of fragments Never claims, month 20: 100.0% of fragments Never claims, month 21: 100.0% of fragments Never claims, month 22: 100.0% of fragments Never claims, month 23: 100.0% of fragments Never claims, month 24: 100.0% of fragments 100 Claims monthly, month 0: 100.0% of fragments Claims monthly, month 1: 85.0% of fragments Claims monthly, month 2: 72.2% of fragments Claims monthly, month 3: 61.4% of fragments Claims monthly, month 4: 52.2% of fragments Claims monthly, month 5: 44.4% of fragments Claims monthly, month 6: 37.7% of fragments Claims monthly, month 7: 32.1% of fragments Claims monthly, month 8: 27.2% of fragments Claims monthly, month 9: 23.2% of fragments Claims monthly, month 10: 19.7% of fragments Claims monthly, month 11: 16.7% of fragments Claims monthly, month 12: 14.2% of fragments Claims monthly, month 13: 12.1% of fragments Claims monthly, month 14: 10.3% of fragments Claims monthly, month 15: 8.7% of fragments Claims monthly, month 16: 7.4% of fragments Claims monthly, month 17: 6.3% of fragments Claims monthly, month 18: 5.4% of fragments Claims monthly, month 19: 4.6% of fragments Claims monthly, month 20: 3.9% of fragments Claims monthly, month 21: 3.3% of fragments Claims monthly, month 22: 2.8% of fragments Claims monthly, month 23: 2.4% of fragments Claims monthly, month 24: 2.0% of fragments 2 Claims weekly, month 0: 100.0% of fragments Claims weekly, month 1: 52.2% of fragments Claims weekly, month 2: 27.2% of fragments Claims weekly, month 3: 14.2% of fragments Claims weekly, month 4: 7.4% of fragments Claims weekly, month 5: 3.9% of fragments Claims weekly, month 6: 2.0% of fragments Claims weekly, month 7: 1.1% of fragments Claims weekly, month 8: 0.6% of fragments Claims weekly, month 9: 0.3% of fragments Claims weekly, month 10: 0.2% of fragments Claims weekly, month 11: 0.1% of fragments Claims weekly, month 12: 0.0% of fragments Claims weekly, month 13: 0.0% of fragments Claims weekly, month 14: 0.0% of fragments Claims weekly, month 15: 0.0% of fragments Claims weekly, month 16: 0.0% of fragments Claims weekly, month 17: 0.0% of fragments Claims weekly, month 18: 0.0% of fragments Claims weekly, month 19: 0.0% of fragments Claims weekly, month 20: 0.0% of fragments Claims weekly, month 21: 0.0% of fragments Claims weekly, month 22: 0.0% of fragments Claims weekly, month 23: 0.0% of fragments Claims weekly, month 24: 0.0% of fragments
Never claimsClaims monthlyClaims weekly

Rules

  • The burn happens the moment a claim settles, and it falls on the fragments that claim was made against.
  • The rate paid per fragment never changes. Halvings move it for everyone at once, while claiming changes only how many fragments you hold.
  • Compounding unclaimed rewards into a new Blade is not a claim, so it burns no fragments and pays no tribute.
  • The USDG allowance is exempt. Claiming it burns nothing and pays no tribute.
  • Fragments are the asset. Claiming destroys them outright rather than marking them, so a position is simply smaller afterwards.
  • Fragments are fungible. A balance of 613 fragments earns exactly what any other 613 fragments earn, whether they were minted as a Curl and claimed against three times or are what remains of a Gyre.
  • Moving a position forfeits its unclaimed ROTOR and USDG to the Treasury, so the recipient starts with nothing accrued and receives the fragments themselves. This applies to a sale and to a transfer between your own wallets alike.

The effect is that the engine rewards patience. Holders who compound keep every fragment they own, while each claim permanently shrinks the base that emits, and together with the 10 ROTOR burn per mint and the halving schedule, fragment burning gives the protocol a third mechanism for holding emissions in check.

PreviousTokenomics

06  Protocol

Rewards

Blade holders earn daily ROTOR emissions as well as a USDG allowance, which is funded by 1% of every sell and split evenly across all Blades, so it grows with trading volume.

Everything a holder has earned can be claimed in a single transaction, and because gas on Robinhood Chain is minimal, that transaction costs almost nothing.

Holders can also skip claiming altogether. The Treasury tracks unclaimed rewards, which can be compounded directly into new Blades without paying the tribute or burning any fragments, making compounding the cheapest way to grow a position.

PreviousClaim decay

07  Protocol

Fees

There is no buy tax and there never will be. The 3% sell tax funds the engine, and while the Treasury may lower it over time, it can never be raised.

Where the 3% sell tax goesThree equal slices on every sell. Buys are untaxed.
Liquidity pool: 1% of every sell 1% Liquidity pool USDG to Blades: 1% of every sell 1% USDG to Blades Stability fund: 1% of every sell 1% Stability fund
  • Buy tax0%
  • Sell tax, liquidity1% to the ROTOR pool
  • Sell tax, allowance1% in USDG to Blades
  • Sell tax, stability1% to buybacks, burns, marketing
  • Creation fee15 USDG per mint tx
  • Claim tribute20% of the claim, in ETH
  • Claim decay15% of fragments claimed against

Each sell deepens the ROTOR liquidity pool, pays Blade holders in USDG and funds buybacks, burns and marketing through the stability fund.

PreviousRewards

08  Reference

FAQ

What is Rotor?

Rotor is a decentralized automated liquidity engine on Robinhood Chain. ROTOR is burned to mint Blade NFTs, which pay daily ROTOR and a USDG allowance, and the combination of burns, halvings, claim decay and buybacks keeps the supply elastic without anyone steering it.

How do I get ROTOR?

ROTOR is available on decentralized exchanges on Robinhood Chain and is not listed on any centralized exchange.

Why is there a sell tax?

The 3% sell tax funds the engine, with 1% going to liquidity, 1% to USDG payouts for Blade holders and 1% to the stability fund. There is no buy tax.

What is a Blade?

A Blade is an NFT minted by burning ROTOR. It pays its daily ROTOR in full, with a 20% tribute paid separately in ETH when you claim, along with a share of the 1% of sell volume that is distributed in USDG.

What is claim decay?

Each claim burns 15% of the fragments it is claimed against, so the position shrinks while the rate paid per fragment stays the same. Compounding into a new Blade is not a claim, and USDG claims are exempt.

Does decay reset if I sell?

What you hold and what you sell is a fragment balance. Claiming destroys fragments rather than marking them, and fragments are fungible, so 613 fragments pay exactly what any other 613 fragments pay regardless of which tier they were minted at or how many claims reduced them. Moving a position forfeits its unclaimed ROTOR and USDG to the Treasury, so the recipient starts with nothing accrued.

How do I get a Blade?

Either burn ROTOR through the protocol or buy one on OpenSea.

Are Blades locked after minting?

No. Blades can be traded on OpenSea from the moment they are minted.

PreviousFees

09  Reference

Disclaimer

Rotor does not promise any return. ROTOR and Blades are digital assets, and anyone using the protocol accepts the risks that come with them, including market conditions that the team cannot control. The team may lower the sell tax at any time but will never raise it above 3%. Rotor is an independent project and is not affiliated with, endorsed by or operated by Robinhood Markets, Inc.

Rotor Finance