Short Term: SMILE Launch & POL

Objective: Establish deep liquidity, stable market dynamics, and decentralized ownership through a strategically architected two-phase token launch and protocol-owned liquidity mechanisms.

Two-Phase Liquidity Bootstrapping Pool (LBP)

The SMILE token launch employs a carefully designed two-phase LBP approach:

Phase 1: Soft Launch (24-hour capped LBP)

• Purpose: Introduce bonding curve mechanics to DeSci participants unfamiliar with LBP dynamics

• Mechanics: Precisely calibrated token weights beginning at 99% SMILE/1% USDC, gradually shifting to 50/50

• Educational Value: Enables new DeSci participants to experience automated market makers and weight-shifting dynamics in a capped, lower-risk environment

Phase 2: Full-Scale Community Distribution (4-day uncapped LBP)

• Purpose: Facilitate broad distribution through unrestricted participation

• Mechanics: Controlled weight decay from 90% to 20% SMILE weight

• Strategic Benefits: Leverages participants' newly-gained understanding of LBP dynamics for informed participation

• Ecosystem Impact: Ensures wide distribution to participants who now understand the mechanism, creating an educated token holder base

Protocol-Owned Liquidity (POL) Strategy

Rather than relying exclusively on temporary incentives or mercenary liquidity, SMILE employs a multi-layered liquidity strategy:

• Locked POL: A significant portion of LBP proceeds are allocated directly to long-term locked liquidity provision

• LP Incentives Deployment: A portion of the incentives budget is strategically allocated to augment protocol-owned liquidity positions

• Ecosystem Partnerships: Collaborative co-incentive arrangements with ecosystem partners further amplify liquidity depth

• Liquidity Flywhel: Treasury-owned DeSci tokens earned via fees are strategically deployed to strengthen liquidity positions

Through this strategy, SMILE not only secures a sustainable market presence but also prepares the ground for strategic ecosystem integrations. Community-driven governance leverages these foundational mechanisms to pursue forward-looking opportunities, positioning SMILE holders to collectively benefit from significant strategic initiatives—including, when appropriate, discreet acquisitions of key scientific assets or resources.