7.3 Overall Economics

Subject to changes, 25% of the total supply that has been reserved to pay ontology miners and Kanon holders is to be the starting balance (in SNS) in the treasury of SynesisDAO. The goal is to use the treasury (and presales proceed) to fund the initial net loss coming from the ontology mining operation when there are not enough Kanons available in the secondary market to generate trading income. We expect little to no income from Mind AI during the formative period of the ecosystem. Once there are enough Kanon trading activities, the trading commission could offset the Kanon Claimable Rewards and Ontology Mining Rewards.

Figure 23: Primary Sources of Income and Expense for SynesisDAO Treasury

The economic health of SynesisDAO depends on the net balance of the following ledger accounting:

CREDIT (+)	DEBIT (-)
Trading Commission (TC)	Architect Service Reward (ASR)
Atomic Split Share (ASS)	Builder Service Reward (BSR)
NFT-to-DeFi Service Fee (NFSF)	Validator Service Reward (VSR)
DeFi Collateral Liquidation (DCL)	Overhead (OpEx)
Creator Royalty (CR)	Royalty Split to Digital Artist (RS-DA)
AI Ontology Usage Fee (AOUF)	Claimable Reward to Kanon Holders (CR-K)
Miner Staking Penalty (MSP)	Miner Staking Interest (MSI)

Where:

• C = Credit or Income flowing into the treasury

• D = Debit or Expenses flowing out of the treasury

• MVt = Market Value of the initial number of SNS allocated to SynesisDAO’s treasury