MECHANISM

Native token

SQKSTR is the backbone of the protocol - the native ERC-20 token deployed on Ethereum mainnet. It coordinates value capture, NFT acquisition, and reward flow across the system.

Tax & acquisition

Every buy and sell of SQKSTR is taxed at 5%. Wallet-to-wallet transfers are exempt, so moving tokens between your own addresses does not trigger the tax.

Funds collected from these taxes are used to market-buy SQUEEK NFTs on a regular basis. Acquired SQUEEKs are deposited into the protocol vault, growing the shared pool that powers mining rewards.

Deposits & tracker receipts

Users can deposit their own SQUEEK NFTs into the protocol. When a SQUEEK is deposited, a tracker receipt NFT is minted to the depositor’s wallet. That receipt is your claim on protocol rewards - it records the mining power assigned to your position.

The protocol merges SQUEEKs from user deposits and tax-funded purchases, increasing total mining power over time. Rewards are distributed to depositors in proportion to the power on their tracker receipts.

Tradable receipts

Tracker receipts are standard NFTs. You can trade them on open markets such as OpenSea, Gondi, and other NFT venues - the same way you would any other collectible.

Each tracker NFT displays the power assigned to that position. SQK mining rewards are distributed according to that power: higher power means a larger share of protocol rewards. Transferring the receipt transfers the claim.

Protocol cut on merge

When two same-level tips merge and level up, total mining power grows by a 10% bump. Of that bump, 75% stays with depositors (community power) and the protocol takes a 25% power cut, credited to the protocol tracker.