Technical Whitepaper · v1.0
A fixed-supply, transfer-taxed, vote-enabled ERC-20 with cross-chain mobility via LayerZero V2 OFT — deployed as a UUPS proxy on Arbitrum One.
SpiralCoin (ticker SPLC) is a self-bootstrapping ERC-20 designed to fund its own ecosystem development through a small, mathematically constrained transfer tax. The contract is upgradeable under the UUPS pattern (for security patches only — supply mechanics are immutable in source), governed by a token-weighted DAO with timelocked execution, and deployable across EVM chains via LayerZero V2 OFT for unified cross-chain liquidity.
SpiralCoin does not claim or guarantee yield, price appreciation, or utility beyond what its on-chain code enforces. This document describes the contract architecture, economic mechanics, and operational commitments — all of which are verifiable on-chain.
SPLC is deployed via OpenZeppelin's UUPS (Universal Upgradeable Proxy Standard). The proxy contract holds
storage; the implementation contract holds logic. Upgrade authority is gated by onlyOwner and
will transition to the SpiralDAO timelock contract prior to large-scale custody, institutional integration,
or staking-vault mainnet activation (see Roadmap §9 phases 5–6). The seed-round LP position is independently
protected by the SPLCLPLock 12-month time-lock described in §7.2, so initial pool liquidity
cannot be removed by the deployer key regardless of governance status. UUPS is preferred over
Transparent Proxies because it removes the admin-storage collision surface and reduces gas overhead on every
call.
The implementation source contains no public, external, or owner-callable mint()
entrypoint. The initial supply is set inside initialize() via
_mint(initialOwner, INITIAL_SUPPLY), which runs exactly once. After initialization the only
paths that mint tokens are: (a) the OFT bridge's internal credit-on-receive, which is matched by a
debit-on-send on the origin chain (net supply = 0), and (b) impossible — there is no other path.
Every transfer between non-exempt addresses skims 314 basis points (3.14%) from the gross amount. The skim is split 50/50:
treasury address (operations, audits, grants, runway).stakingVault address (rewards for SPLC stakers).The rate (FEE_BPS_TOTAL = 314) is declared constant in source. There is no setter.
To change it, the entire implementation contract would have to be upgraded — a change visible on-chain and
subject to the timelock once governance is transferred.
π (pi) ≈ 3.14159 was selected as a culturally recognizable constant. The practical rationale: it is low enough to permit normal trading and DeFi composability, but meaningful enough — when multiplied by genuine transfer volume — to fund continued protocol development without requiring inflation, paid sponsorships, or rent-seeking governance proposals.
Specific addresses can be marked feeExempt by the owner (later: DAO). Exemptions are needed for:
the treasury and staking-vault recipients themselves (preventing recursive skim), bridge/OFT endpoints, the
LP-lock contract (so initial pool seeding is untaxed), and known router contracts where the skim breaks AMM
invariants (see §7.2 for the V3 caveat).
Uniswap V3 pools enforce the K-invariant on every swap: if the actual transferred amount differs from the
swap-quoted amount, the transaction reverts. Therefore V3 pools are kept tax-INACTIVE — they are
added to feeExempt. The 3.14% revenue is collected on (a) wallet-to-wallet transfers, (b)
V2-style pools (PancakeSwap V2, SushiSwap V2) where the skim is supported, and (c) future curve-shaped or
balancer-style venues that tolerate fee-on-transfer tokens.
SPLC ships with a fixed initial supply set in initialize(). There is no minting authority, no
rebase function, no inflationary issuance, no validator-reward emission. The total supply can only decrease
(via voluntary burns sent to 0x000…dead or via the standard _burn path if exposed
in a future audit).
This is a deliberate design choice that mirrors Bitcoin's fixed-supply commitment: the protocol cannot fund itself through dilution. All operational funding flows from the 3.14% transfer-tax stream, not from issuance.
SPLC is the voting token for SpiralDAO, a Governor-Bravo-style on-chain DAO with timelocked execution. Once governance is migrated:
TimelockController with a configurable delay (target: 48 hours
minimum on mainnet).Until those migrations complete, SPLC documents an interim centralization risk in §11.2.
The staking vault receives 1.57% of every taxed transfer. Stakers deposit SPLC into the vault contract and accrue a pro-rata share of incoming tax revenue. There is no fixed APR; yield is purely a function of network transfer volume — when volume is high, yield is high; when volume is zero, yield is zero. No inflation subsidizes staking.
The first AMM venue is a SPLC / USDC pair on Uniswap V3 (Arbitrum One), in the 1% fee tier (10,000 bps; tick spacing 200) — the standard tier for new/volatile tokens. Seeding is done via contracts/scripts/deployLpAndLock.js using a full-range position.
After the pool is seeded, the LP-position NFT is transferred to SPLCLPLock — a custody contract that
prevents withdrawal of the underlying position for a minimum of 12 months. Trading fees accrued by the
locked position can still be collected by a designated feeRecipient (the treasury), but the
principal liquidity cannot be removed during the lock window. The lock contract address and unlock timestamp
are recorded in contracts/deployments/{network}/LpAndLock.json
after seeding.
SPLC inherits OFTUpgradeable from LayerZero V2's official package. Cross-chain transfers are burn-and-mint: tokens are burned on the origin chain and an equivalent amount is minted on the destination chain after the LayerZero DVN attestation. Net global supply is preserved across all chains. Initial chains: Arbitrum One (live), Base + Polygon + Ethereum mainnet (configured but not yet liquid).
| Phase | Milestone | Status |
|---|---|---|
| 0 | Token deployed on Arbitrum One (UUPS proxy) | Live |
| 1 | Arbiscan token-info verification + listing | Submitted |
| 2 | SPLC/USDC seed pool on Uniswap V3 (1% fee, full-range) | Funding |
| 3 | LP NFT time-lock activation (12 months minimum) | Pending pool |
| 4 | GeckoTerminal + DEXScreener listings (auto-indexed) | Pending pool |
| 5 | Staking vault mainnet deployment | Audit-pending |
| 6 | SpiralDAO governance + timelock takeover of proxy | Drafting |
| 7 | LayerZero OFT peer enable to Base / Polygon / Ethereum | Configured |
| 8 | ERC-4337 paymaster (pay gas in SPLC) — review pending | Drafted |
contracts/contracts/SpiralCoinUpgradeable.solcontracts/contracts/SPLCLPLock.solcontracts/scripts/deployLpAndLock.jsSPLC is a volatile, speculative digital asset. Token prices can and do go to zero. There is no guaranteed yield, no guaranteed liquidity, and no guaranteed price floor. Past performance — including any backtested or hypothetical figures — does not predict future results. Trading involves risk; only allocate capital you can afford to lose entirely.
Until SpiralDAO governance is live and the proxy's upgrade authority is transferred to the timelock contract, the deployer wallet retains the technical ability to upgrade the SPLC implementation contract. While the published source contains no mint function and no tax-rate setter, a malicious upgrade could in principle alter those properties. Users should evaluate this risk explicitly until the governance migration is complete and verifiable on-chain.
The initial SPLC/USDC pool is funded by a seed-round contribution rather than by a large institutional market-maker. Until secondary liquidity grows, slippage will be high and exit liquidity will be limited. The 12-month LP time-lock partially mitigates rug-risk for the seed position, but does not guarantee tradeable depth.
The SPLC contracts have been written against audited OpenZeppelin and LayerZero base contracts, but the SPLC-specific extensions (tax logic, OFT integration, staking vault, paymaster) are not yet third-party audited. An external audit is planned before any large-scale custody or institutional integration. Until then, deposits, staking, and bridging carry standard smart-contract risk.
The regulatory treatment of digital assets, governance tokens, and DeFi liquidity provision varies by jurisdiction and is evolving. SPLC is not registered as a security in any jurisdiction. Users are responsible for determining the legal status of their participation under their own local laws.