00Summary
Coven is a token called $ICHOR on Ethereum. You buy it and hold it. From then on, three things happen automatically on every trade, and one thing happens the first time a wallet ever buys.
On every trade you earn ETH, a bigger holder sometimes takes a bite from a nearby smaller holder, and the supply shrinks. The first time a wallet buys, it rolls once at one in ten to win its money back. That roll is called the Blood Pact.
There were 100,000 $ICHOR at launch and there will only ever be fewer. The whole supply is paired into a Uniswap v4 pool at the start, so everyone buys from the same place.
01What Coven is
Coven is a token you hold in your own wallet. You do not stake it, lock it, or sign up for anything. Holding is the whole job. The rules below run inside the token contract, so they apply to everyone in the same way. Together they are what we call BLOOD-20: where Singularity gave a balance gravity so balances pulled on each other, BLOOD-20 gives a balance a pulse, so it earns, feeds, and burns. $ICHOR is the first BLOOD-20 token.
The theme is a coven and its blood, ichor. The mechanics are simple money rules with a gothic name. Wherever this paper says a bigger holder takes a bite, it means one wallet takes a small slice of another wallet, by the contract, within strict limits.
02Earning ETH
Every buy and sell pays a fee of 7%, taken in ETH. Of that fee, 70% is shared among holders and 30% goes to the team wallet. Your share of the 70% is set by how much of the supply you hold at the time.
Your earnings build up over time and wait for you. You claim them whenever you want from the app, and the ETH goes straight to your wallet. To take part in earning, hold at least 10 $ICHOR.
The more the token is traded, the more fees flow in, so a busy market means more ETH for holders.
03The bite
Now and then a bigger holder takes a bite from a nearby smaller holder. A bite takes 7% of the smaller holder, and 40% of what is taken is burned. The rest moves to the bigger holder.
Three rules keep the bite fair. Only holders within 4x of each other in size can be matched, so a whale cannot bite a tiny wallet. A brand new wallet is protected for its first 5 minutes. And nobody can ever lose more than 30% of their highest balance, total, across all bites.
Because part of every bite is burned, the bite is also one of the ways the supply shrinks over time.
04The supply only shrinks
New $ICHOR can never be created. The supply started at 100,000 and only goes down from there. Two things burn tokens.
First, bites burn 40% of every slice they take. Second, trimming: any holder who grows past 3% of the supply is trimmed back down to that line on the next trade, and the trimmed tokens are burned. This keeps any single wallet from owning too much of the coven.
The result is a supply that drifts downward as the token is used.
05The Blood Pact
The first time any wallet buys Coven, it rolls a single time. One roll in ten wins, and a win pays back the full amount of ETH spent on that buy, returned in the very same transaction. Each wallet only ever rolls on its first buy.
The payouts come from a shared pool. 10% of every buy is set aside into that pool, which is what funds the wins, so the Blood Pact pays for itself. A win is only paid when the pool holds enough to cover it, so the pool can never overdraw. The team can never withdraw the pool.
06The Mark
The Mark is a free badge for holders. It lives fully on-chain, which means the artwork is drawn from the chain itself rather than stored on a server. It costs only gas to mint, and each wallet can mint one.
It comes in four styles: Sanguine, Nocturne, Umbral, and Wraith. You mint it from the app once you hold the token.
07Tokenomics
08What a trade costs
A sell always costs the 7% fee. A buy costs the 7% fee as well, and while the Blood Pact is on it also sets aside an extra 10% into the pool. So during the pact a buy costs 7% plus 10%, and a sell costs 7%.
That 10% set-aside is not a fee to the team. It funds the Blood Pact payouts, and the team can never take it.
09Safety and limits
The bite is the one rule that can take tokens from you, so it is the most fenced in. Size matching keeps very different wallets apart, the 5 minute grace period covers new buyers, and the 30% lifetime cap means most of your balance is always safe.
The Blood Pact pool can only pay what it holds, so it can never go negative, and the team can never drain it. At launch a buy is capped at 0.25% of supply and a wallet at 2%, to keep the start fair, and these limits can be eased or lifted later.