2) DEEP Token Utility (Burn-to-Advertise)

Mechanic

To place a Sponsored Transmission on the stream, a project burns DEEP. Burns are permanent; the show displays a running season counter. (No fiat.) We present the mechanic as access control for airtime, not an investment device.

Policy guardrails

• Ads: text + URL only, with profanity/abuse filters; we reserve the right to reject or remove any submission that appears fraudulent, infringing, or unlawful.
• Disclosures on-screen (e.g., "PAID PROMOTIONS MAY APPEAR · NOT FINANCIAL ADVICE · DYOR") remain persistent.

Dual-Network Strategy

The DEEPSPACE ecosystem currently operates across two separate networks:

• Mainnet (Solana): The production DEEP token for operational burn-to-advertise functionality. This is the live, commercial implementation where real economic activity occurs.
• Testnet (Solana): A separate test token used exclusively for experimental prediction market testing. This deployment serves research and development purposes only.

4) Legal Caveats — "Airlocks & Red Lines"

• Testnet Experimental Status — The current testnet deployment of prediction markets is for research and development purposes only. Test tokens have no economic value and confer no rights. The testnet may be discontinued, modified, or reset at any time without notice. No user data, positions, or outcomes from testnet operations will carry forward to any potential mainnet deployment.
• No Guarantee of Mainnet Deployment — The existence of testnet prediction markets does not constitute a promise, commitment, or representation that such features will be deployed on mainnet or made available for commercial use. Mainnet deployment is subject to obtaining all necessary regulatory approvals, licenses, and legal counsel clearance.
• Derivatives / Event-Contract Risk (U.S.) — Binary markets may be regulated as derivatives. Operating without appropriate registrations or exemptions may violate the Commodity Exchange Act, even if contracts reference non-financial outcomes. Enforcement and policy have been active and evolving. We will not launch U.S.-facing binary markets absent a compliant path (registration or qualified partnership) or will geofence the U.S.
• Gaming / Wagering Laws — Outside CFTC scope, some jurisdictions treat event markets as gambling. Local licensing, age gating, and responsible-use tools may be required. We will adopt country-by-country blocks as necessary.
• Securities / Marketed Expectations — Marketing that links burns to price increases can contribute to "expectation of profit" narratives. Public copy will focus on utility (airtime), not appreciation.
• AML / Sanctions — If value is staked or paid, we may need KYC/AML and sanctions screening for certain geographies.
• Ads & Consumer Protection — Sponsored messages are clearly labeled; submissions that appear fraudulent or misleading will be rejected. Persistent "entertainment only / DYOR" overlays remain.
• Content & IP — Advertisers must own or license their content; no infringing marks or claims. We reserve editorial control to remove any ad that violates policy or law.
• Privacy & Data — Minimal data collection; logs retained only for security/compliance; cookie-light site.

6) Future Economic Model — Vision & Research

Market Creation & Fee Model (Concept)

Future mainnet markets may implement a creation fee model (e.g., 0.03 SOL per market) to ensure quality and prevent spam. Market resolution could include a protocol fee (target: ~5% of losing pool) distributed between:

• Market Creators: Incentive for creating high-quality, engaging markets (base: 2%, staked: up to 4%)
• Platform Treasury: Protocol sustainability and development (3-1%, inversely proportional to creator stake)

Staking Tier Concept

A potential staking system could reward long-term DEEP holders with enhanced benefits:

• Base Tier (0-999,999 DEEP): Standard creator rewards (2%)
• Deep Tier (≥1M DEEP): Enhanced creator rewards (4%), priority market placement
• DAO Tier (≥20M DEEP): Governance participation, protocol parameter votes, treasury allocation decisions

Deflationary Loop Vision

The long-term economic vision includes a deflationary mechanism where platform fees could be used for:

• $DEEP Buyback: Protocol treasury uses accumulated fees to purchase DEEP tokens from open market
• Token Burn: Purchased tokens permanently burned, reducing circulating supply over time
• Combined with Ad Burns: Dual deflationary pressure from both ad purchases and market fee buybacks

Gamification Concepts

Research into engagement mechanisms that could enhance the prediction market experience:

• Creator Leaderboards: Recognition for successful market creators with high volume and accuracy
• XP & Progression: Experience points and level systems based on market participation
• Mystery Rewards: Periodic loot drops, crates, or bonus rewards for active participants
• Seasonal Leagues: Time-limited competitive prediction competitions with prizes
• Referral System: Multipliers and bonuses for bringing new users to platform

8) Risk Factors (Non-exhaustive)

• Testnet Discontinuation: The experimental testnet deployment may be discontinued, modified, or reset at any time without notice or compensation. No user positions, data, or outcomes from testnet operations will be preserved or migrated.
• No Mainnet Guarantee: The existence of testnet prediction markets does not guarantee mainnet deployment. Regulatory barriers, technical challenges, or strategic decisions may prevent mainnet launch entirely.
• Test Token Value: Test tokens used on the testnet have zero economic value and confer no rights. Any perceived value is speculative and unfounded.
• Regulatory: Laws can change quickly; permissions may be revoked or require costly remediation. Prediction market regulations remain in flux across jurisdictions.
• Market: Low liquidity can cause slippage; price of DEEP may be volatile; ad demand may be cyclical. Future economic models described in this lightpaper may not be implemented or may perform differently than conceptualized.
• Operational: Oracles, RPCs, and data providers can fail; we maintain fallbacks and the right to halt. Smart contract bugs or exploits could result in loss of funds if/when real-value markets launch.
• Reputation: Ads are third-party content; despite screening, viewers must DYOR. Participation in testnet markets does not constitute endorsement or validation.