Sympa ⛏️

The most interesting part of $ORE's design isn't live yet. TLDR: Today, revenue generated by the ORE Reserve auto-compounds in isolation. Eventually, that revenue could be streamed to uORE holders (miners holding unclaimed rewards) as SOL mining credits, allowing the protocol to increasingly fund its own mining activity. The result is a flywheel that could strengthen mining incentives, lift staking yield, and put ORE on a path to net deflation. First, it's worth understanding why ORE is different. Bitcoin, Zcash, Ethereum, and Solana all use their native assets to incentivize network security. ORE doesn't have that requirement. It inherits Solana’s security, so it can direct its incentives toward a different objective: rewarding those who accumulate and hold the asset. ORE is a store of value by design, and nearly every mechanism in the protocol reinforces this objective. Consider how value flows through ORE today: - Miners deploy SOL to earn ORE, aiming to acquire it below market price. - A 10% refining fee on claimed rewards is redistributed to holders of unclaimed rewards (uORE). - Mining revenue funds ORE buybacks, burial, staking rewards, and the Reserve. - The Reserve provides liquidity while generating its own revenue through LP fees and yield-bearing assets like JitoSOL and USDv. The result is a system where mining activity supports holders through multiple mechanisms, while the Reserve continues to grow and generate additional liquidity and revenue. But there's one more piece to the design. Arguably the most interesting. In AI, recursive self-improvement (RSI) describes a system capable of improving its own capabilities, with each improvement enabling further improvements. ORE has a potential economic equivalent. Today, the simplified flow looks like this: Mining → Reserve → LP fees + yield → Reserve. The Reserve grows, generates revenue through LP fees and yield, and reinvests that revenue into itself. A straightforward compounding mechanism. But the loop back to mining remains open. Now consider what happens when Reserve revenue is redirected to uORE holders as SOL credits, usable exclusively for mining ORE. The flow becomes: Mining → Reserve → LP fees + yield → SOL mining credits → Mining → Reserve. The loop closes. This is the recursive moment. Consider the significance of this change. Today, mining depends on SOL supplied by users. With mining credits, the Reserve’s own revenue becomes a new source of capital to fund that same activity. Originally powered by user capital, ORE could become increasingly self-powered. A protocol generating its own fuel. There are two particularly interesting second-order effects here. First, Reserve-funded mining credits could increase competition for ORE rewards, driving up production costs. To the extent this stimulates incremental mining activity, it generates additional protocol revenue, supporting buybacks, burial, staking rewards, and Reserve growth. Second, and perhaps most importantly, this creates a potential path toward sustained net deflation. At sufficient scale, additional protocol revenue could fund enough buybacks and burial to consistently exceed new ORE issuance. To be clear, mining credits aren't live today, and it may be years before the economics justify turning them on. The Reserve first needs sufficient scale and sustainable revenue to fund meaningful mining incentives without compromising its liquidity or long-term growth. More importantly, the incremental mining activity needs to generate enough additional value to justify redirecting revenue away from direct compounding. But the potential end state is worth considering: an economic system that compounds recursively, under its own power.

The most interesting part of $ORE's design isn't live yet. Post coming later today.