# 11: Commitment-Based Issuance

## Source
- **Novel construction** inspired by:
  - MycoFi paper: "subscription-based bonding curves", "myco-mortgages"
  - Commons Stack augmented bonding curves
  - Proof-of-contribution systems (Coordinape, SourceCred)

## Rationale for MYCO

Financial bonding curves only recognize capital. But the MycoFi ecosystem values labor, sustained commitment, and community building equally. Commitment-based issuance creates parallel minting channels that don't draw from financial reserves — they recognize non-financial value contributions.

Three channels:

### 1. Labor / Proof-of-Contribution
- Oracle or peer review attests to contribution units
- Code, governance participation, community building
- Rate-limited per period with cooldowns
- Unclaimed contributions decay (use-it-or-lose-it)
- Governed conversion rates (tokens per contribution unit)

### 2. Subscription / Recurring Pledges
- Recurring payments (e.g., $10/month) create continuous mint streams
- Better rate than spot bonding curve (subscriber premium)
- Loyalty multiplier grows with duration (up to 2x for long-term patrons)
- Predictable inflow for the reserve
- Three tiers: Supporter ($10/mo), Sustainer ($50/mo), Patron ($200/mo)

### 3. Staking / Time-Weighted Lockup
- Lock $MYCO or approved assets for T time units
- Bonus minting: `amount * base_rate * lockup_multiplier(T)`
- Concave multiplier: `sqrt(T)` curve (diminishing returns)
- Max 3x multiplier for 1-year lockup
- Early withdrawal forfeits 50% of unvested bonus
- Creates demand-side pressure and long-term alignment

## Integration with Reserve System

Commitment channels mint $MYCO **without adding to financial reserves**. This means:
- They dilute the backing ratio (more supply, same reserves)
- The P-AMM redemption curve accounts for this (backing ratio < 1 triggers discounts)
- Flow dampening applies to commitment minting too (rate limits)
- The system has governance-controlled caps on total commitment minting

The key insight: commitment-minted tokens are backed by **ecosystem value** (labor, loyalty, commitment) rather than financial reserves. The reserve tranching layer treats "commitment value" as a separate vault type alongside financial vaults.

## Parameters

### Labor
| Parameter | Default | Effect |
|-----------|---------|--------|
| tokens_per_unit | 3-10 | Conversion rate per contribution type |
| max_units_per_period | 20-100 | Rate limit |
| period_length | 30 days | Period for rate limits |
| cooldown | 1-7 days | Min time between claims |
| decay_rate | 0-0.1 | Annual decay of unclaimed units |

### Subscription
| Parameter | Default | Effect |
|-----------|---------|--------|
| payment_per_period | $10-200 | Recurring payment amount |
| base_mint_rate | 1.5-2.0x | Premium vs spot rate |
| loyalty_multiplier | up to 2x | Grows with subscription duration |
| loyalty_halflife | 90-180 days | How fast loyalty builds |

### Staking
| Parameter | Default | Effect |
|-----------|---------|--------|
| base_rate | 5% APR | Base staking reward |
| max_multiplier | 3x | Max bonus for longest lockup |
| max_lockup | 365 days | Maximum lockup duration |
| multiplier_curve | sqrt | Shape of lockup bonus curve |
| early_withdrawal_penalty | 50% | Forfeited bonus on early exit |

## Implementation

See `src/commitments/labor.py`, `src/commitments/subscription.py`, `src/commitments/staking.py`