# Flywheel

Earlier chapters named the parts. This chapter is how they feed each other.

Long-run loop: more volume → more tax → more miners → more BEM → a stronger reason to hold. That is a design goal, not a guarantee.

Rates and splits: [Token & Curve](/token). How the treasury turns tax into machines: [Treasury](/treasury). How BEM is booked: [Dividends](/dividends). Risks and external dependence: [Risks](/risks).

## Tax base

Volume → treasury BNB.

This launch is on Flap. Buys and sells pay 5%. After Flap's fee, the rest goes to the treasury. No slice of the tax is a holder dividend or an LP add. Holder `$BEM` is miner output.

The tax base moves with volume. No volume, no new kit budget. That is a fiscal identity, not price support.

## Capital goods

Treasury BNB → parts → circuit NFT → start.

kitBuyer fills live NAND / LATCH asks on Firsto. Anyone can tape-out, arm, and start. After start, the machine cannot be stopped.

This step turns liquid BNB into irreversible machines. The cap on machine count is first the tax base, then whether Firsto still has live asks, then tape-out fees and gas. If parts cannot be bought, tax stays as treasury BNB. See [Risks](/risks).

Kit ratios are fixed. Batching applies to buying and tape-out only. `startJohnson` runs one machine at a time.

## Output

Start → harvest → `deposit` on the Flap Dividend.

After someone harvests, `$BEM` is deposited against current shares. The treasury takes no cut. If nobody holds a qualifying balance, the deposit is refused and the tokens stay in the treasury.

BEM's emission cadence is PodMining's. This launch cannot speed it up, stop it, or change the task. Exogenous yield means output is not a MTAPE policy.

Addresses below 10,000 `$MTAPE` do not accrue new deposits. A sale keeps `$BEM` already booked, then ends further accrual.

## Holding

Eligible balance → claim `$BEM` → keep holding or sell.

The last hop is not enforced. A holder can claim and sell in the next transaction. There is no lock, so there is no on-chain "you must stay to earn."

By design, exogenous BEM gives the position a cash flow that is not the MTAPE price. It may raise willingness to hold, and that may sustain the tax base. It may also be treated as exit liquidity. The contracts do not pick which.

The narrower mechanical stretch ends at the miner: if there is tax, a live ask, and someone to poke, machines increase. From BEM to the next unit of volume is preference, not an identity.

## Compact form

```mermaid
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flowchart TD
  Volume["Volume"] -->|5 percent tax, remainder kept| Treasury["Treasury BNB"]
  Treasury -->|kitBuyer fills asks| Build["Parts and tape-out"]
  Build -->|anyone starts| Miner["Unstoppable miner"]
  Miner -->|anyone harvests| Booked["BEM deposited per share"]
  Booked -->|floor 10000 MTAPE| Claim["Eligible claim"]
  Claim -.->|not enforced| Volume
  classDef hot fill:#f46622,stroke:#f46622,color:#120d09
  class Treasury hot
```

Solid edges are contract paths. The dashed edge is what the design hopes happens and does not force.

Migration does not thicken the treasury. Flap moves the book to Pancake. This treasury never holds that LP. Later tax still arrives as BNB until the tax window ends. See [Design Goals](/goals).

Treating the dashed edge as a promise is underwriting price and volume. This paper does not. Bounds: [Conclusion](/conclusion) and [Risks](/risks).