$BASED Summary of Official Position on the Tokenomics Controversy (Korean) 1. General Position • There has been considerable criticism and concern regarding $BASED tokenomics over the past day. The team is aware of issues such as poor communication, Ethena distribution, the existence of Season 3, and Sybil issues. • Token launch is not simply about distribution; it's about aligning early contributor rewards with long-term ecosystem growth. • BASED's long-term goal is to become a mainstream fintech-level crypto platform like Robinhood. ⸻ 2. Token Supply & Launch Philosophy • If the initial circulation is too small, community formation will fail, and if it's too large, there's a risk of price collapse due to lack of liquidity. • The launch will not be delayed due to market conditions (e.g., BTC below 70k). → Based on product completeness, community, and ecosystem readiness. ⸻ 3. Seasonal Community Rewards • Season 1 (approximately 3 months): $7.63M in fees • Season 2 (approximately 3 months): $5.34M in fees • 60-70% of profits are redistributed to users (affiliate/referral rewards) • S1 = 8%, S2 = 8% token allocation • Due to the short season, a simple comparison with "10% for other projects" is inappropriate ⸻ 4. Q&A Key Summary Q1. Why are tokens given to exchanges (Launch Partners)? • Refers to exchanges and distribution partners, not influencers • To ensure liquidity, accessibility, and price stability • Includes vesting conditions ⸻ Q2. Why is Ethena included in the Genesis distribution? • Ethena is not simply an external entity, but a community with substantial contributions. • HyENA joint project → Core engine of growth. • Ethena Community: 7.5% of total supply. • 20% unlocked for 3 months after TGE. • The remainder vests after 1 year. • BASED community receives tokens immediately, before Ethena. ⸻ Q3. Why is there investor allocation? • Capital that enabled early survival. • 1-year lockup + 24-month linear vesting. ⸻ Q4. Why is 20% of the team allocation? • Long-term builder incentives & core personnel retention. • Cannot be sold before the community. • Fully vested. ⸻ Q5. Why is Season 3 included in the Genesis Distribution? • Genesis is based on the "economic vesting point," not the actual payment point. • Season 3 runs from January to May → included in the Genesis distribution. ⸻ Q6. Why are $PUP holders eligible for Genesis distribution? • Signaling remaining loyalty even in a bear market, not for short-term farming. • To strengthen community stability and long-term holder base. • Token conversion, not airdrop. • No snapshots. ⸻ Q7. How do you handle Sybil? • Analyze millions of on-chain and off-chain data. • Use Based Alignment Score. • Criteria: • Ongoing use. • Excluding single-event activities. • Actual trading risk. • Partial deductions for trading primarily in stablecoin pairs. • Removed tokens will be redistributed to the actual community. ⸻ Q8. Why only 8% per season? • The season is very short, at 3 months. • Based on the entire points period (June-December 2025, 6 months), → A total of 28.5% is distributed to the community, including S3. • To prevent short-term over-distribution. ⸻ Q9. What are the Based Card Points? • Detailed information will be provided upon the release of the airdrop checker (before TGE, mid-March) ⸻ Q10. What about buybacks/fee sharing? • Only confirmed details will be announced. • Announcement will be made after regulatory and implementation issues are resolved. • No empty promises. ⸻ Q11. How much was removed from Sybil? • Redistributed to normal community users. ⸻ Q12. What is the TGE schedule? • Target: March • Additional exchange launches are being prepared. • Any changes will be immediately announced with the reason.