Tokenomics (Not final version)

To continue developing the project, Triolith Games AB announces the issuance of the Genes Token ($GENES) via a pre-sale offering, a seed-sale and public sale.

Issuance Goals

The launch of the Genes Token has the following goals:

• Sustain Development: Secure funding to support the ongoing development of The Genesis Engine project.

• Global Marketing Campaign: Allocate resources for an international marketing campaign to enhance visibility and reach.

• Community Growth: Foster the expansion of our community and customer base, nurturing an engaged and supportive user network.

• Eco-system Promotion: Actively promote the ecosystem through the launch of $Genes, creating awareness and adoption.

• Industry Collaboration: Encourage collaboration by attracting other gaming companies to leverage The Genesis Engine platform, fostering a collaborative gaming environment.

• Platform Incentives: Introduce $Genes as an incentive mechanism within The Genesis Engine, encouraging active participation, contributions, and engagement from users and developers.

• Collaborative Partnerships: Utilize $Genes as a means to forge strategic partnerships with other projects and entities in the gaming and blockchain industries, fostering collaboration and mutual growth.

• Exclusive Access: Offer exclusive access to certain features, content, or events within The Genesis Engine platform to $Genes holders, creating a sense of exclusivity and value for token holders.

• NFT Integration: Integrate non-fungible tokens (NFTs) within The Genesis Engine ecosystem, with $Genes serving as a utility for NFT transactions, ownership, and rewards.

Subject of Issuance: Genesis Engine Token ($GENES)

Triolith Games AB will be responsible for the issuance of a non-representative token of negotiable value (utility token) called The Genesis Engine Token ($GENES).

Token Specifications

• Token Name: The Genesis Engine Token

• Symbol: $Genes

• Protocol hard cap: 1,000,000,000 Genes

• Initial circulating supply at TGE: 175,700,000 GENES (to be finalized prior to TGE)

• Target Network Architecture: The GENES token is intended to operate within the Genesys Chain ecosystem, a multi-layer gaming-focused blockchain currently under research and development.

• Interim Deployment: Prior to the launch of the proprietary Genesys Chain, the GENES token may initially be deployed on a third-party, EVM-compatible blockchain (e.g. an L1 or L2 to be determined). The final choice of interim network has not yet been made and will be disclosed in the MiCA-compliant crypto-asset whitepaper and on the official website prior to any EU public offer.

• Smart Contract Addresses: No GENES token smart contract has been deployed as of the date of this document. The definitive contract address(es) will be published on the official Triolith / Genesis Engine website and in the MiCA-compliant crypto-asset whitepaper once deployment occurs.

Smart Contracts, Audits and Upgrade Policy

The GENES token and related functionality (such as token sales, staking, treasury management and fee routing) will be implemented using on-chain smart contracts on the selected blockchain(s).

As of the date of this document:

• No GENES token smart contracts have been deployed yet.

• No third-party security audits have been completed yet.

Prior to making any public offer of GENES tokens to EU investors, the Issuer intends to:

• deploy the GENES token smart contract(s) on the chosen network(s);

• subject all Issuer-controlled GENES and core protocol smart contracts to an internal security review; and

• have these contracts audited by at least two independent external smart contract security firms; and

• publish summary results of these audits and references to public reports (where available) on the official website together with the final contract address(es).

The Issuer also plans to adopt a documented update and bug-handling policy, which may include:

• the ability to pause or restrict certain smart contract functions in the event of critical vulnerabilities;

• procedures for deploying upgraded contract versions where necessary; and

• governance rules defining who can propose and approve such changes.

Full details of the deployed contracts, audit providers, and the final update/bug-handling policy will be included in the MiCA-compliant crypto-asset whitepaper and disclosed prior to any EU public offer.

Audits

The GENES token and related protocol components (including token sale, staking, treasury, fee-routing and vesting/lock-up contracts) will be implemented as smart contracts on the selected blockchain(s).

All Issuer-controlled smart contracts that are critical for the GENES token or the Genesis Engine core services are intended to undergo:

• an internal security review; and

• audits by at least two independent external smart contract security firms before being made available to users or used in connection with any public offer of GENES tokens.

Details of the deployed contract addresses, the identity of the audit firms, the scope of their reviews and links to public reports or summaries (where available) will be published on the official website and in the MiCA-compliant crypto-asset whitepaper.

Governance and Conflicts of Interest

Triolith Games AB is both the issuer of the GENES token and the initial operator of the Genesis Engine platform. Members of the founding team, advisors and early investors will hold allocations of GENES tokens, as detailed in the Token Distribution section.

Key decisions regarding the GENES token economics (such as any proposal to increase issued supply within the protocol hard cap, or to modify core smart contracts) will be taken through a documented governance process that includes:

• proposals initiated by the Issuer or eligible stakeholders;

• review and approval by the Issuer’s board; and

• where appropriate, consultation or vote by token holders through on-chain or off-chain governance mechanisms.

These roles may create potential conflicts of interest (for example, decisions that impact token price, fees or rewards). The Issuer will aim to manage such conflicts transparently, including through disclosure of material related-party transactions and adherence to internal policies governing decision-making and personal holdings.