POWSTRAT: Proof-of-Work Strategy Token

Abstract

POWSTRAT is a utility token built on the Solana blockchain designed to represent fractional ownership in a dynamically compounding reserve of Vertcoin (VTC). It acts as a vehicle for Proof-of-Work (PoW) advocacy and incentivization, using a novel economic mechanism where every token purchase directly contributes to the acquisition and storage of Vertcoin. This white paper outlines the architecture, economics, security model, and long-term vision of POWSTRAT, aimed at enhancing adoption of PoW chains through strategic tokenomics.

Introduction

While Proof-of-Stake has grown in popularity, Proof-of-Work remains the most battle-tested method of decentralized consensus. POWSTRAT bridges the world of Solana's speed and scalability with the ethos of PoW by creating an on-chain token that backs itself with a real PoW asset—Vertcoin.

Token Design

• Token Standard: SPL Token on Solana

• Ticker: POWSTRAT

• Decimals: 9

• Total Supply: 1,000,000 POWSTRAT

• Transaction Tax: 5% on all transfers

Economic Mechanism

Every time POWSTRAT is purchased, funds are split:

• 50% to the Vertcoin Reserve: Stored securely in a multisig wallet

• 50% used to buy more Vertcoin: Either manually or via automated off-chain trading bots

This creates a self-reinforcing loop:

1. Buyers enter the ecosystem

2. Vertcoin is purchased and removed from circulation

3. Reserve value increases, improving token backing

4. Increased interest drives further adoption

Use Case

• Store of PoW Value: A way to gain exposure to PoW assets while benefiting from Solana's infrastructure.

• Advocacy Mechanism: Educates users on PoW mining and supports projects that align with fair mining practices.

• Liquidity Hub: Future plans include a Raydium pool pairing POWSTRAT with SOL or USDC for liquidity mining and swap utility.

Reserve Wallet

• Custody: Multisig wallet with rotating governance keys

• Transparency: Reserve balances made public via block explorer and token dashboard

• Audits: Periodic third-party verification of VTC reserves and flow integrity

Smart Contract Logic

Smart contracts built with Anchor will handle:

• Token buy mechanics

• Reserve routing

• Transaction tax enforcement (5%)

• Governance voting (if DAO enabled in later phases)

Roadmap

Phase 1: Token creation, minting, and distribution Phase 2: Smart contract deployment & reserve setup Phase 3: Raydium LP and liquidity incentives Phase 4: DAO governance and Vertcoin grant system Phase 5: Cross-chain bridges and PoW integration expansion

Security & Compliance

• Mint & freeze authority revoked post-launch

• Source code audited and publicly available

• Regulatory alignment with utility token frameworks

Conclusion

POWSTRAT represents the fusion of high-throughput blockchain capability and the fundamental value of Proof-of-Work. By creating a token that is not just backed by—but actively supports—PoW networks, it offers a new model for value storage, community alignment, and strategic advocacy.