Tokenomics

Furnace has three assets: HYPE, which you stake and are paid in, xFURNACE, your staking receipt, and FURNACE, the protocol's ERC-20 token. This page covers each one, the revenue flow, and what the admin can and can't do.

#The three assets

Staking and distributions use HYPE only. You don't need FURNACE to stake, and holding FURNACE doesn't change your share of distributions. The x in xFURNACE marks it as a staking receipt. It is backed by staked HYPE, not by FURNACE.

#xFURNACE

#Fee and revenue flow

                 ┌──────────── engine revenue (sourceKind 0) ────────────┐
 FurnaceEngine ──┘                                                       ▼
 External senders ──────────── external (sourceKind 1) ─────────▶  Distributor
 Furnace treasury ──────────── treasury contribution (2) ───────▶      │
                                                                       │ distribute(), each Monday 00:00 UTC
                                         ┌─────────────────────────────┴─────────────────────┐
                                         ▼                                                   ▼
                        FurnaceStaking (stakers)                               Furnace treasury
          80% of engine + external, 100% of treasury contributions      20% of engine + external
                                         │
                                         ▼ streamed over 7 days, pro rata
                                 xFURNACE holders

#Revenue

• Engine revenue is arbitrage spread plus fees earned by Furnace's liquidity positions, realized in HYPE and swept from FurnaceEngine to the Distributor.
• External is HYPE from any other sender, shown with its sender address. Any chain-side builder payment that reaches a Furnace contract lands here.
• Treasury contribution is HYPE that Furnace adds itself. It is never counted as revenue, and it goes 100% to stakers.

#The split

• The split is set once, in the Distributor constructor (stakerShareBps = 8000), and can't be changed afterwards. There is no setter, and the contract isn't upgradeable.
• The Distributor assigns each inflow's split as it arrives, so its pending staker and treasury amounts are always readable on-chain.
• The treasury share pays for keeper gas, infrastructure and operations.

#Epochs and allocations

• Epoch: one week, starting Monday 00:00 UTC. Epoch 0 started Monday 2 November 2026.
• Allocation: after each epoch boundary, distribute() sends the accumulated staker share to FurnaceStaking and the treasury share to the treasury. Anyone can call it, and Furnace calls it at every boundary. The call emits Distributed(epoch, toStakers, toTreasury).
• Stream: FurnaceStaking pays each allocation out evenly over 7 days, every second, pro rata to xFURNACE balances. If a new allocation arrives while a stream is still running, the unstreamed remainder rolls into the new 7-day stream.

#What the dashboard shows instead of an APR

The dashboard shows only what has actually been distributed: each epoch's allocation, the current stream rate and the inflows by source. It doesn't show an APR, an APY or a projection. Past distributions don't predict future ones.

#FURNACE token

#Allocation

The deployment script mints the full supply into these four allocations in one transaction. The dashboard's Contracts panel links the token and the owner multisig, so every allocation balance can be checked on the explorer.

#What FURNACE does in v1

The FURNACE token has no role in staking or distributions. It doesn't boost your share, it isn't required to stake, and it isn't paid out as a distribution. Distributions are HYPE only.

#Admin powers and limits

You can check every cannot in the verified source code on the explorer.

#Fees

Furnace charges nothing to stake, withdraw or claim. The only protocol share is the 20% treasury split of engine and external revenue described above. It is taken before allocation, and it's visible in every Distributed event.