5. Economic Architecture

The New Gold Protocol introduces a multi-layered economic system designed to ensure sustainability, stability, and resilience against market shocks. At its core, the system transforms user participation into long-term value through three key mechanisms — LP Bonds, Profit Pools, and the DAO Treasury Pool — all reinforced by additional stabilization tools such as transaction fees and cooling-off periods.

Unlike previous DeFi models that depended on inflationary rewards, NGP aligns incentives through real yield distribution, deflationary pressure, and active liquidity management.

LP Bonds: Strengthening Liquidity Foundations LP Bonds merge staking with liquidity provision. Users purchasing LP Bonds automatically participate in liquidity pools, enhancing depth and stability while earning predictable returns. Aurora AI will dynamically adjust bond issuance and rates in future versions.

Profit Pool: Converting Sell Pressure into Growth The Profit Pool transforms sell transactions into value by redistributing fees to long-term holders. This model discourages panic selling and builds a positive feedback loop that rewards commitment.

DAO Treasury Pool: Core Stability Engine The Treasury Pool accumulates reserves and deploys them to stabilize prices via repurchase mechanisms, bond issuance, and market regulation. It functions as the ecosystem’s intelligent stabilizer.

Market Stabilization Mechanisms

• Cooling-Off Period: Newly purchased $NGP cannot be immediately sold, reducing speculation.

• Sell Transaction Fee: A 5% fee on sell orders supports the Treasury, Profit Pool, and burns.

• Deflationary Dynamics: Regular burns ensure token scarcity.

Together, these mechanisms establish a resilient economic architecture that is adaptive, community-driven, and sustainable.