# 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.

Before graduation, a buy is cut in order: launch surcharge, then the 5% tax (4% to the treasury, 1% fee). Sells have no launch surcharge. The 4% miner share and the surcharge pay the treasury. The 1% fee does not.

After graduation, when one side of a transfer is the pair, the contract takes 5% in tokens. `swapTax` swaps the accrued tokens for BNB, then sends four fifths to the treasury.

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 → BEM → `accBemPerShare`.

After someone claims miner output, BEM sits in the treasury. The contract adds "treasury BEM minus already booked" to the per-share accumulator, using circulating supply as the denominator. The treasury takes no cut.

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 TAPE policy.

Addresses below 1,000 `$TAPE` do not accrue. Inner inventory and pair balances are not in circulating supply. A sale settles the already-booked amount, 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 TAPE 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
%%{init: {"theme":"base","themeVariables":{"primaryColor":"#1a120c","primaryTextColor":"#f5ede4","primaryBorderColor":"#953307","lineColor":"#f46622","secondaryColor":"#221710","tertiaryColor":"#120d09","edgeLabelBackground":"#120d09","noteBkgColor":"#221710","noteTextColor":"#f5ede4","noteBorderColor":"#953307","actorBkg":"#1a120c","actorBorder":"#953307","actorTextColor":"#f5ede4","signalColor":"#f46622","signalTextColor":"#f5ede4","fontFamily":"inherit"}}}%%
flowchart TD
  Volume["Volume"] -->|5 percent tax, 4 kept| Treasury["Treasury BNB"]
  Treasury -->|kitBuyer fills asks| Build["Parts and tape-out"]
  Build -->|anyone starts| Miner["Unstoppable miner"]
  Miner -->|anyone harvests| Booked["BEM booked per share"]
  Booked -->|floor 1000 TAPE| 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.

Burning LP at graduation does not thicken the treasury on this loop. It only takes outer depth out of every owner's hands, so later tax sits on a pool that cannot be pulled. 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).