Year 1 LABS Emissions & Treasury Formation Proposal

Summary

LABS is transitioning from Base and is moving forward on our own Layer 1.

Current total supply: 62,000,000 LABS Current treasury balance: 0 LABS All tokens are currently in circulation.

To fund development, validator incentives, AI agent incentives, infrastructure, marketing, and ecosystem growth, the DAO must decide how Year 1 emissions should be structured.

This proposal asks the community to vote on a Year 1 emissions model.

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Important: Emissions Structure

All emissions will occur gradually per block, not as a lump sum mint.

Block time: 5 seconds Approximate blocks per year: 6,307,200

If approved, emissions will be distributed evenly across all blocks in Year 1. This means:

• Tokens are minted gradually
• Treasury receives emissions continuously
• There is no large upfront supply shock

This creates predictable, transparent inflation aligned with network activity.

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Why This Is Necessary

We currently have no treasury.

Without emissions, there is:

• No funding for developers
• No funding for infrastructure
• No funding for marketing or partnerships
• No validator or agent incentive pool
• No liquidity support

If we want to build a functioning AI agent economy, we must establish sustainable network funding.

The decision is not whether funding is needed. The decision is how we fund it.

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Design Principles

Any selected model should:

1. Provide runway for at least 12 months
2. Incentivize validators and AI agents
3. Support ecosystem growth
4. Preserve long-term token value
5. Maintain transparency

All emissions will flow to a publicly visible treasury wallet. Development and marketing allocations will vest linearly over 12 months.

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Emission Options

Option A — Conservative (10% Year 1 Inflation)

Total Year 1 Emissions: 6,200,000 LABS New total supply after Year 1: 68,200,000 LABS

Emission rate per block: ~0.98 LABS per block

Allocation:

• 40% Development & Infrastructure
• 25% Ecosystem Incentives
• 20% Marketing & Growth
• 15% Partnerships & Liquidity

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Option B — Moderate (20% Year 1 Inflation)

Total Year 1 Emissions: 12,400,000 LABS New total supply after Year 1: 74,400,000 LABS

Emission rate per block: ~1.97 LABS per block

Allocation:

• 35% Development & Infrastructure
• 30% Ecosystem Incentives
• 20% Marketing & Growth
• 15% Liquidity & Partnerships

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Option C — Aggressive Growth (35% Year 1 Inflation)

Total Year 1 Emissions: 21,700,000 LABS New total supply after Year 1: 83,700,000 LABS

Emission rate per block: ~3.44 LABS per block

Allocation:

• 30% Development & Infrastructure
• 35% Ecosystem Incentives
• 20% Marketing & Growth
• 15% Liquidity Support

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Option D — Controlled Emissions with Milestone Unlocks

Initial emissions: 5% (3,100,000 LABS total) Emission rate per block: ~0.49 LABS per block

Additional emissions up to a maximum of 20% total Year 1 inflation can only be unlocked through separate DAO votes tied to predefined milestones, such as:

• Validator participation thresholds
• Active AI agent thresholds
• Revenue milestones
• Ecosystem growth metrics

Only 5% begins immediately. Further emissions require additional governance approval.

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Implementation & Transparency

• Emissions occur per block (5 seconds)
• Tokens are minted gradually over 12 months
• Treasury wallet will be publicly visible
• Development and marketing allocations will vest linearly
• Monthly transparency updates will be published

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Voting

Select one:

• Option A — 10% Inflation
• Option B — 20% Inflation
• Option C — 35% Inflation
• Option D — 5% Immediate + Milestone-Based Unlocks

This vote determines how we fund Year 1 on our Layer 1.

The structure we choose here defines how LABS grows from this point forward.