Zodiac Federation

One sentence: The Zodiac Federation is a decentralized economy on Polygon mainnet, organized around two interlocking structures — twelve sovereign zodiac houses that govern it, and a thirteen-tick-per-day lunar clock that paces it — running a dual-currency dyad (LUNAR/SOLAR) whose ratio is enforced by a sigmoid AMM (TidalPool) and whose every fee, rebase, mint, and governance window is timed to the actual position of the moon and sun.

Simple explainer

The Federation runs on two paired currencies. LUNAR is elastic (rebases three times per day with the lunar phase) and is the working currency for forging NFT stamps, purifying them, and constellation maintenance. SOLAR is fixed-supply (cap 11.1B, emitted over 365.5 days through November 2026) and is the reserve and governance currency. Both tokens are pegged at a 1 SOLAR : 100 LUNAR ratio, enforced by TidalPool's sigmoid swap curve rather than by oracle or treasury intervention. Members forge NFT stamps with LUNAR, lock them into geometric constellation patterns (sacred geometry: triangles, hexagons, mandalas) for streaming rewards, bond USDC for vested SOLAR, and earn fee yields. Governance is a 7/12 multisig across the 12 zodiac houses (Aries through Pisces). After SOLAR emission ends in November 2026, the protocol becomes entirely self-sustaining on recycled fees.

The clock — thirteen ticks a day

The Federation's organizing principle is time. Every day the moon moves roughly 13° through the zodiac, and the protocol divides the day into thirteen ticks, each about one degree of lunar motion. Each tick is a state-update moment: the lunar oracle advances its phase index, phase-coupled TidalPool fees recompute, NFT purity decays, reward streams accrue, and eclipse / cardinal-proximity flags update. This thirteen-tick rhythm is the governance clock the whole ecosystem cadences against; four times a year the solstices and equinoxes open roughly 48-hour cardinal windows with premium mechanics. There is no on-chain tick scheduler — an off-chain keeper drives the rhythm and currently runs at reduced cadence during live testing, with the full thirteen ticks per day as the design target. The clock is not the calendar; it is the sky.

Advanced: the sigmoid curve and fee generation

TidalPool uses a sigmoid pricing function price = midPrice × (1 - tanh(k × (r - 0.5))) clamped to explicit bands at priceFloor = 20 and priceCeiling = 500 (5× tolerance either side of the sigmoidMidPrice = 100 anchor). When the pool's SOLAR/xLUNAR reserve ratio is balanced (r = 0.5), price equals the midPrice exactly. As traders push the ratio off-center, slippage rises smoothly along the S-curve until hitting the hard clamps. This does three things at once: (1) keeps the dyad ratio gravity-bound to 1:100 via pure mathematics, requiring no treasury intervention or external oracle; (2) creates measurable, volume-attracting slippage gradients that fund the fee engine; (3) enables phase-coupled fee modulation — a 1.5% base swap fee plus a lunar-phase modifier (max 5%), making the fee schedule itself change every 8 hours. Fees flow into FeeAccumulatorV2 with a fixed 60/20/2/18 split: 60% to xLUNAR stakers via an ERC-4626 vault, 20% to the EclipseBond reserve (backing depeg defense), 2% to a resilience pool, 18% retained for governance.

Advanced: the dyad and elastic supply

LUNAR rebases every 8 hours (three times daily), expanding +0.5% to +3% during waxing phases and contracting -0.5% to -3% during waning phases. Over a complete 29.53-day lunation, the net drift is +1.24% (designed positive), annualizing to roughly 16.5% supply growth before burn pressure. The entire NFT layer is LUNAR's sink: forging burns 100% of the user's LUNAR input (locked permanently in the stamp), purification at the Altar burns 21.7% of forge value, constellation locks remove additional LUNAR, and ritual burns destroy stamps and their LUNAR forever. At steady state the protocol targets three burn flows that collectively remove approximately 143% of the daily LUNAR forged, making the system net deflationary despite the positive rebase drift. SOLAR's supply is fixed at 11.1B and emitted over exactly 731 twelve-hour epochs spanning 2025-11-11 to 2026-11-11. Cardinal-event epochs (solstices and equinoxes, 4 per year) emit at 1.5× weight; adjacent epochs at 1.25×; baseline at 1.0×. After epoch 731, SOLAR emission ends forever and the economy runs entirely on recycled fees.

Advanced: depeg defense via EclipseBond

When xLUNAR's exchange rate falls 15% or more below 1.0 (par), EclipseBond's openWindow() can be called by anyone. Users then burn xLUNAR to a dead address and receive SOLAR-denominated bonds with sigmoid-shaped yield: shallow depeg (15-25%) pays 2-15% yield, Tier 2 (25-40%) pays 15-25%, Tier 3 (40%+ depeg) pays 25-50%. Two safeguards prevent OHM-style death-spirals: (a) a coverage-ratio floor automatically throttles max yield when reserves drop below 1.5× outstanding obligations; (b) a duration bonus rewards bonds issued later in the window, distinguishing sustained pressure from spike volatility. Bonds mature in FIFO order when peg recovers, paid from the SOLAR reserve funded by the 20% FeeAccumulatorV2 stream. A symmetric SolarBond mechanism for over-peg (xLUNAR > 1.10) exists in spec and compiled bytecode but is not yet deployed on-chain — activation is gated on empirical data showing over-peg is recurring rather than sporadic.

The four economic actions for agents

  1. Bond (USDC → vested SOLAR): Call bond(paymentToken, paymentAmount, vestingDays, to) on UsdcInletBondV2 at 0x96c61ea771774fF2F632d69a88d1D435Ee6dD7cA on Polygon (chainId 137). Vesting 7/14/30 days with 0%/+5%/+10% bonus tiers. Fixed price $0.25/SOLAR. Read live config first via /api/federation/bond-status. Bond page: /bond.
  2. Forge (LUNAR → NFT stamp): Browse queue via GET /api/federation/forge-queue/{house_index} (0=Aries, 11=Pisces). Claim via POST /api/federation/forge-claim with telegram_id, queue_id, delivery_address, client_request_id. Federation Wallet (Method-A) delivery requires no external wallet — the keeper signs the on-chain mint atomically with LUNAR debit. CelestialStamp contract: 0x5839Ee35e219bCE344431BC645bdcB15Cb4Fb8Bd.
  3. Vote (governance via house seats): 12-house 7/12 multisig (FederationGovernanceV3). Members participate via xSOLAR staking (Tier 1: 1.2× weight, Tier 2: 1.0×, Tier 3: 1.5×). Query active proposals via GET /api/federation/proposals.
  4. Seat (join a house): Members seat themselves via POST /api/join-federation/seat. Agents seat via Hermes plugin or whisper_code linking (POST /api/federation/auth/link-agent). Roster (pseudonymized as Whisper-XXXX): GET /api/federation/house-data.

Honest gaps

Six current limits documented in sigmoid-critique.md: (1) SolarBond (symmetric over-peg defense) is designed and compiled but not deployed pending empirical data. (2) StampEconomicFacet source has been lost; the live contract works but can't be audited or safely upgraded without decompilation. (3) The lunar-rhythm keeper is centralized off-chain — outages cause stale phase data and lose phase-fee modulation but swaps continue. (4) TidalPool's clamps create a known drain risk: external price moves beyond the clamp can be exploited by arbitrageurs at the pinned price until governance reacts. (5) sigmoidMidPrice is currently governance-tunable at runtime rather than upgrade-only — a malicious 7/12 majority could shift the dyad anchor instantly. (6) The cross-asset reflexivity loop (burn xLUNAR → receive SOLAR → swap back to xLUNAR via TidalPool) creates a partial closed-arbitrage cycle; mitigations are in spec but not yet live. Phase 1 of the constellation NFT hierarchy (Layers 0-2: Stamps, Asterisms, Constellations) is shipped; Layers 3-4 (Complexes and Federation Mandalas) are on the roadmap.

Where to read the white paper

The canonical Federation white paper — mission, the thirteen-tick lunar clock, the LUNAR/SOLAR dyad, the TidalPool sigmoid AMM, the Celestial Forge NFT layer, governance, and goals — is published at /papers, with a machine-readable Markdown mirror at /papers.md. Agents should also consume: /llms.txt (LLM-friendly summary), /.well-known/agent.json (A2A AgentCard with 14 skills), /.well-known/ai-plugin.json (Hermes plugin manifest), and /openapi.yaml (OpenAPI 3.1 spec). The Hermes plugin is installable via hermes plugins install The-Arcane-Order/hermes-federation.

Quick reference

Chain
Polygon mainnet (chainId 137)
LUNAR token
0x3317B020Ebc63bb243710F39b543d9b274F24d2B
SOLAR token
0x76414F698217e5d49Cc0bE5cF57563D92D12129f
UsdcInletBondV2
0x96c61ea771774fF2F632d69a88d1D435Ee6dD7cA
CelestialStamp NFT
0x5839Ee35e219bCE344431BC645bdcB15Cb4Fb8Bd
Dyad ratio
1 SOLAR : 100 LUNAR
Sigmoid bands
floor 20, ceiling 500
LUNAR price (approximate, 2026-06-16)
$0.0025 USD
SOLAR price (live on-chain bond price)
$0.25 USD
Vesting bonus tiers
7d baseline, 14d +5%, 30d +10%
Governance
12 houses, 7/12 multisig, xSOLAR-weighted
Fee distribution
60% stakers / 20% EclipseBond / 2% resilience / 18% retained
SOLAR emission end
2026-11-11 (epoch 731 of 731)
Hermes plugin
The-Arcane-Order/hermes-federation