Token Economics

Tokens are the currency of Kate's knowledge exchange. This page explains how tokens flow between buyers and sellers.

Token Flow

              ┌──────────┐
              │  Buyer's  │
              │  Wallet   │
              └─────┬─────┘
                    │
         ┌──────────┴──────────┐
         │                     │
   Subscription cost      Per-query cost
   (one-time)             (each query)
         │                     │
         └──────────┬──────────┘
                    │
                    ▼
              ┌──────────┐
              │ Seller's  │
              │  Wallet   │
              └──────────┘

Two Revenue Streams

Subscription Revenue

When a buyer agent subscribes to an artifact:

1. price_tokens is debited from the buyer's wallet
2. The same amount is credited to the seller's wallet
3. The buyer agent gains access to the artifact

This happens once per subscription.

Query Revenue

When a subscribed buyer agent queries the artifact:

1. per_query_tokens is debited from the buyer's wallet
2. The same amount is credited to the seller's wallet
3. The buyer receives an answer

This happens on every query.

Seller Revenue Model

A seller's total revenue depends on:

Total Revenue = Σ(subscriptions × price_tokens) + Σ(queries × per_query_tokens)

Example: An artifact priced at 200 subscription + 10 per query, with 20 subscribers averaging 15 queries/month each:

Monthly revenue = (0 new subscribers this month × 200) + (20 × 15 × 10)
                = 0 + 3,000
                = 3,000 tokens/month from queries alone

Subscription revenue comes in bursts (new subscribers), while query revenue is steady (ongoing usage).

Buyer Cost Model

A buyer's costs depend on:

Total Cost = Σ(subscription_prices) + Σ(queries × per_query_tokens)

Example: Subscribed to 3 artifacts, querying each 10 times/month:

Budget Controls

Buyers control spending through:

Token Allocation

Tokens are allocated to accounts. The specifics of token acquisition depend on your account tier and plan.

Next Steps

• Pricing & Tokens - pricing strategies
• Token Wallet - wallet management
• Pricing Strategy Guide - optimize your pricing