Monetary expansion does not only create inflation. It also tends to widen the gap between those already close to capital and those entering later. Wave starts from the distribution rule itself: make concentration more expensive, thicken the middle layer, and let the system grow toward an olive-shaped holder structure.
1. what wave tries to solve
Most growth systems follow the Matthew effect: early, large, or already powerful capital keeps gaining structural advantage, while later participants pay higher costs without necessarily sharing the growth they help create. Wave does not try to erase differences. It changes how growth pressure is distributed.
Wave encodes wealth segmentation, mint taxes, reserve pricing, and rebase into one contract-level mechanism. The goal is an on-chain anti-Matthew effect: when large capital pushes the system forward, part of that growth cost is routed back to lWAVE holders, helping the middle layer grow stronger over time.
2. the Anchor Line
Wave defines an internal wealth boundary called the Anchor Line. Users do not manually choose their lane. Each mint is routed by comparing the ETH input with the live Anchor Line.
if ethIn <= Anchor Line: mint lWAVE else: mint uWAVE
lWAVE represents the lower lane: smaller-entry holders who receive rebase. uWAVE represents the upper lane: larger capital that pushes the reserve curve forward. Both tokens share the same pricing curve, but they play different roles in the distribution system.
3. rising tide lifts all boats
Wave's redistribution is not discretionary. It is automatic contract logic. uWAVE mint and lWAVE/uWAVE burn charge a 3% fee; lWAVE mint uses a reverse integral tax. The team receives only 10% of protocol fees, which equals 0.3% of transaction value on standard 3% fee actions, and this allocation is capped at 1000 ETH. The remaining fees enter the system and are routed through lWAVE rebase.
lWAVE shares stay fixed lWAVE index increases display balance = shares * index
lWAVE holders do not need to receive a normal transfer. Their displayed balance rises because the index rises. In plain terms: when larger flows push the tide higher, lWAVE holders are lifted by the rebase.
4. reverse integral tax
To make distribution more precise, lWAVE mint uses a reverse integral tax. From zero to the Anchor Line, the marginal tax rate moves from 30% down to 0%. The closer a single mint is to the Anchor Line, the lower its marginal rate; the farther it is from the Anchor Line, the higher the tax.
lWAVE mint fee: fee(x, A) = maxFee * x - (maxFee - minFee) * x^2 / (2A) current values: maxFee = 30% minFee = 0% A = live Anchor Line
This behaves like a middle-layer filter. A single mint close to the Anchor Line can approach the lowest tax. Splitting the same amount into many small orders repeatedly starts near the high-tax region, which makes sybil-style splitting less attractive.
5. the anti-Matthew rule
The core of Wave is not a one-time redistribution event. The core is the base rule that makes the Anchor Line respond to the balance between lWAVE and uWAVE. In the current contract, the base anchor comes from a percentage of reserve ETH and is then scaled by the uWAVE/lWAVE ratio.
baseAnchor = reserveETH * 0.20% Anchor Line = baseAnchor * (uWAVE supply / lWAVE supply)^2
When lWAVE becomes large, the Anchor Line shrinks, making further lWAVE minting harder. When uWAVE becomes large, the Anchor Line expands, creating more room for lWAVE again. The system behaves like a balance scale: lWAVE has rebase incentives and attracts capital, but if it grows too dominant, the Anchor Line tightens.
This is the anti-Matthew effect in Wave. It does not rely on a governor deciding who deserves what. It relies on a rule that continuously changes the direction of allocation. Only a change in the base rule can break the cycle where a new winner simply becomes the next source of concentration.
6. growth engine
Wealth imbalance is the fuel, like oil. The price and reserve curve is the engine. Wave does not deny large capital. It turns large capital's entries, exits, and pressure into curve growth and lWAVE rebase fuel.
Wave is not sold at a fixed price. Each new token is priced by a nonlinear curve. The current implementation uses a quadratic price function: slow early growth, faster late-stage price acceleration, and stronger FOMO pressure as supply expands.
price at supply S: P(S) = base + q * S^2 / scale reserve value at supply S: V(S) = base * S + q * S^3 / (3 * scale)
With the current parameters, when combined lWAVE and uWAVE supply reaches one billion tokens, the marginal price is about 0.000025001 ETH. Fully diluted market value is about 25,001 ETH, while curve reserve value is about 8,334.33 ETH. At that scale, reserve value is roughly one third of market value.
7. why this is not ordinary PVP
Wave is not designed as simple holder-versus-holder extraction. In many PVP systems, later entrants mainly become exit liquidity for earlier entrants. Wave splits growth into three connected processes: the curve raises price, the Anchor Line segments flows, and fees flow back through lWAVE rebase.
Its sustainability does not come from a promised yield. It comes from a continuously enforced allocation rule: as the system grows, capital segmentation becomes more visible; as segmentation becomes more visible, fee redistribution matters more; as rebase becomes more meaningful, lWAVE consensus can accumulate.
8. reserve and exit
lWAVE and uWAVE are non-transferable. Users exit by burning. Burns redeem ETH against the same curve and pay a 3% fee.
burn value: grossETH = V(currentSupply) - V(currentSupply - burnedAmount) netETH = grossETH - burnFee
The internal curveReserveETH variable is the accounting source for curve reserve. Users cannot bypass the curve and directly withdraw ETH. They can only enter and exit through mint and burn rules.
9. current parameters
10. risks
Wave is an economic mechanism experiment, not a promise of profit. The contract can enforce the price curve, Anchor Line, taxes, routing, and rebase, but it cannot remove market risk, liquidity risk, MEV risk, smart contract risk, or the risk that participants misunderstand the model.
Wave does not try to make every holder equal. It makes excessive concentration more expensive, routes growth costs back to lWAVE, and uses immutable base rules to keep producing an anti-Matthew effect.