Draft proposal. $VEIL has not launched. Every figure on this page is a working proposal and may change before launch. Nothing here is an offer to sell tokens, financial advice, or a promise of value or returns. Features marked planned are not in the current contracts.
A privacy pool has an unusual network effect: every user makes every other user more private. A bigger anonymity set means each exit hides among more people. The $VEIL flywheel is built around growing that set and paying the people who keep it running.

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The loop, step by step

1

Rewards bootstrap the privacy set

In the early years, emissions pay users to exit via convoys, stagger their withdrawals and keep funds veiled longer. These are the behaviours that make the pool useful to everyone.
2

A bigger set attracts more users

Privacy gets better as the set grows. People choose the pool where they hide among the most others, so growth compounds.
3

Usage generates fees

Every deposit and withdrawal pays a protocol fee, capped at 1% by the contract. Fees grow with volume, not with token emissions.
4

Fees flow back to VEIL

Swept fees buy VEIL for sVEIL stakers (60%) and burn VEIL (15%). The remaining 25% funds the treasury.
5

Staking secures delivery

Relayers need staked VEIL to deliver convoys, and they earn more for reliable delivery. Holders stake for fee share. Both reduce liquid supply.
6

Reliability brings more users

Convoys that leave on time and private operations that never fail make Veilify the default way to transact privately on Robinhood Chain. The loop starts again, bigger.

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Buyback and burn

Protocol fees are the only source of buybacks. User funds in the pool are never used, and the contract caps the fee at 1%.
1

Sweep

Fees accrue in the pool contract and are swept to the treasury on a fixed schedule (planned: weekly).
2

Buy

75% of each sweep buys VEIL on the open market, spread over 24 hours so a single large order never moves the price.
3

Distribute and burn

Of the VEIL bought, the stakers’ share (60% of fees) goes to sVEIL stakers. The burn share (15% of fees) is sent to a burn address and removed from supply for good.
4

Publish

Every sweep, buy and burn is an on-chain transaction, listed with its amounts so anyone can check the totals.
One buyback for every chain. Fees from Robinhood Chain and, once live, Solana feed the same buyback and burn.
The split, schedule and execution are a draft design and can change before the token launches. A buyback is not a promise of price or returns.

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From emissions to fees

The flywheel is designed so that fee revenue replaces emissions as the reward source. If fee revenue is still too small by year 3, governance can redirect treasury funds or adjust the fee split. It can’t raise fees above the contract’s 1% ceiling.

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Guardrails

No reward may require revealing an address, amount or timing link. Rewards that can’t be claimed privately are not shipped.
MAX_PROTOCOL_FEE_BPS = 100 is enforced by the pool contract. Token holders can lower fees but never raise them above 1%.
Withdrawing never requires holding, staking or paying in VEIL. A fee-less withdrawal can always be submitted directly to the contract.
Convoy rewards weight time kept veiled and staggering, not raw volume. Depositing and withdrawing in a loop costs 2× the protocol fee and earns little.