The Perpetual Endowment & Engine
At the core of AetherCycle’s sustainability are two interconnected components: The Perpetual Endowment and The Perpetual Engine. Together, they form a closed economic loop — a guaranteed source of funding, managed by an autonomous system.
The Perpetual Endowment
The Endowment is a permanently locked reserve of capital that ensures baseline funding for the protocol, independent of market activity. Its design makes it mathematically impossible to fully deplete, providing a perpetual financial backbone for AetherCycle.
Core Mechanics
Initial Capital:
311,111,111 AEC(35% of total supply) locked at genesis.Release Formula: Each month,
0.5%of the remaining balance flows into the Engine.Mathematical Guarantee: Since only a fraction is released each time, the balance approaches zero but never reaches it — ensuring infinite funding.
Proof of Infinite Operation
The balance of the Endowment at any given month t is expressed as:
B(t) = B0 × (0.995)^tWhere:
B0 : The initial balance.
t : The number of months elapsed.
Since 0.995 < 1, the balance B(t) will always remain greater than zero for any finite t. The monthly release is:
R(t) = B(t) × 0.005which also remains positive indefinitely.
Long-Term Resilience
Time Horizon
Months
Remaining Balance (%)
5 years
60
~74.0%
10 years
120
~54.8%
20 years
240
~30.0%
50 years
600
~4.6%
This aligns with the 0.5% monthly release formula and ensures perpetual funding for protocol operations.
The Perpetual Engine
The Engine serves as the autonomous processor of the ecosystem. Its main function is runCycle(), which can be triggered by anyone, subject to a cooldown period. This function gathers all protocol revenue, including Endowment releases, taxes, and other sources, and allocates them according to fixed rules.
The Immutable 20/40/40 Split
20% Burn: Permanently removes AEC from circulation, adding deflationary pressure.
40% Auto-Liquidity: Splits into stablecoin + AEC, pairs them, adds to the liquidity pool, and stakes the LP tokens — building protocol-owned liquidity.
40% Staking Rewards: Distributed across staking pools (LP, Token, NFT), rewarding participants who secure and support the protocol.
Self-Sustaining Finance
The Endowment provides infinite capital.
The Engine ensures autonomous, value-accruing distribution.
Together, they create a system designed to operate indefinitely, free from external funding or centralized control. This is the foundation of Autonomous Finance.
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