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The EconomyThe curve & two pots

The curve & two pots

The bonding curve

Each nation is an SPL token on its own protocol-owned bonding curve. There are no external pools during the season — the curve is the only market. Price is linear in the curve supply s:

P(s) = P₀ + k·s R(s) = P₀·s + (k/2)·s²

Buying supply from s₁ to s₂ costs R(s₂) − R(s₁); selling returns down the same curve. The invariant is public and auditable: the reserve R always equals the area under the curve. On-chain this is exact integer (lamport) arithmetic, so the equality holds bit-for-bit — no rounding drift.

The SOL inside the curve — the reserve R — is the nation’s wealth. Wars are fought over it.

Two pots, and why your army doesn’t rug itself

Every nation holds two separate balances:

  • Reserve R — inside the curve. Backs the token. Drains when people sell.
  • Sovereign treasury T — fee income and war spoils. Buys the military. Sells can never touch it.

This split is the anti-death-spiral design. A panic crashes your price; it does not delete your standing army, because the army was already bought from the treasury. A collapsing token slows a nation’s future — it does not disarm its present. Currency crises in Powerbloc behave like currency crises on Earth: painful, survivable, and occasionally the buying opportunity of the season.

Backing only goes up

Part of every trading fee is used for buyback-and-burn: the protocol buys tokens on the curve and burns them, adding SOL to the reserve while removing supply. So backing per token — R / s, displayed live as a nation’s floor — only rises with volume. Trade anything, and every remaining holder’s floor climbs.

Next: fees and the political parties they create.

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