HEIRLOOM

The main issue with most previous attempts at on-chain flywheels is that fees originating from swaps within an AMM are zero-sum; regardless of how they are distributed, it is a closed loop. Any tax or LP fee that goes to buybacks is liquidity from within the closed system of SOL ↔ LP ↔ base token. These closed-loop systems still work quite well if the LP can sustain consistent volume, but are not long-term feasible.

Yield-bearing Heirlooms change that. Heirlooms, represented as NFTs, track the owner's $HEIR balance and Heirloom age (time since mint without selling $HEIR). All Heirloom holders share a portion of AMM fees, pro-rata based on the weight of the Heirloom, claimable as SOL. The best part: Heirlooms are tradeable, and the accrued age + $HEIR persist from the seller to the buyer. By routing 5% of all Heirloom sales directly to buybacks and burns, capital is injected that comes from outside the closed loop, not just from token swap fees. Heirlooms trade with a premium directly proportional to the time weight attached to them, you can think of the premium captured as a liquid derivative of time itself.

Reward weight = $HEIR balance × M(age), where M(age) = 1 + 8.30136 × ln(1 + age_in_days)

These pieces work together to maximize the reflexive nature of the system. As demand for $HEIR increases, Heirloom holders accumulate more rewards, accelerated by quick flippers and traders that eat heavy taxes. As a result, Heirlooms themselves become more valuable as a yield-bearing asset, and in turn generate more protocol fees as they exchange hands. All fees from sales go directly toward $HEIR buybacks and burns. The fees from AMM swaps and the fees from Heirloom sales feed into each other in an indefinite reflexive feedback loop. As an Heirloom ages, it becomes increasingly -EV to sell any $HEIR, as that would reset the age, taking even more $HEIR supply out of circulation, increasing scarcity and fueling the positive feedback loop.