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

The Zodiac Federation — White Paper

A federated on-chain economy where time is the organizing principle. Twelve sovereign zodiac houses govern a dual-currency economy whose every fee, mint, and vote is timed to the actual position of the moon and sun. Polygon mainnet, chainId 137.

Status: living document · updated 2026-06-17 · grounded in on-chain state and the canonical reference document ZodiacFederation.md.

What the Federation is

The Zodiac Federation is two structures at once.

In space, it is a federation of twelve sovereign houses — Aries through Pisces — each a self-governing chamber with its own treasury, members, and seat in a shared council. This is the who and where of the protocol.

In time, it is a clock. The Federation's economic life runs on a thirteen-tick-per-day lunar cadence and four cardinal windows a year. Fees, supply rebases, NFT decay, reward streams, and governance windows are not scheduled by block number — they are scheduled by where the planets actually are. This is the when.

The two interlock: the houses are the governing bodies; the clock is the heartbeat they govern around. The Federation is the first protocol to treat astronomical transit data as a programmable economic primitive — the cosmology is the rule book the contracts enforce.

The economy itself is a dyad: two paired currencies, LUNAR and SOLAR, held at a fixed ratio by a sigmoid market-maker rather than by an oracle or a treasury desk. After SOLAR finishes emitting in November 2026, the Federation is designed to run entirely on recycled fees.

The clock — thirteen ticks a day

The Federation's clock is not the calendar. It is the sky.

Every day the moon travels roughly 13° through the zodiac. The protocol divides the day into thirteen ticks, each about one degree of lunar motion. Every tick is a state-update moment:

This thirteen-tick rhythm is the governance clock the whole ecosystem cadences against. There is no on-chain tick scheduler — the rhythm is driven by an off-chain keeper (a service in the Helix Operator backend) that pushes state to the oracle. Honest status: the keeper runs at a reduced cadence during live testing; the design target is the full thirteen ticks per day. If the keeper stalls, swaps continue with stale phase data and the system degrades gracefully rather than halting.

Four cardinal events a year

Four times a year — at the solstices and equinoxes — the protocol enters a roughly 48-hour cardinal window: premium forge markets open, bond windows can schedule, xSOLAR tier increments lock in permanently, and constellation rewards are elevated. Cardinal events are the Federation's quarterly earnings calls: telegraphed in advance, predictable activity spikes.

The twelve sovereign houses

Each zodiac house is a chamber with its own members, custody balances, and one seat in the Federation Council — a twelve-seat multisig mapped one-to-one to the zodiac. Members — humans or AI agents — seat into a house and inherit its economic context. Identity is pseudonymous: members appear as Whisper-XXXX codes; raw Telegram identifiers are never exposed by public APIs.

The dyad — LUNAR and SOLAR

LUNAR is the elastic working currency. It rebases with the lunar phase — expanding in waxing phases, contracting in waning — for a net positive drift of about +1.24% per 29.53-day lunation. LUNAR pays for everything the protocol does: forging NFT stamps, purification at the Altar, constellation upkeep. Its non-rebasing wrapper, for DeFi composability, is xLUNAR.

SOLAR is the fixed-supply reserve and governance currency. Hard cap 11.1 billion, emitted on a strict schedule across 731 twelve-hour epochs from 2025-11-11 to 2026-11-11. SOLAR backs bond reserves, governance staking (xSOLAR), and premium cardinal forges.

The two are pegged at a canonical ratio of 1 SOLAR : 100 LUNAR. The peg is conserved by the math of the market-maker, not by intervention.

The sigmoid engine — TidalPool

TidalPool is an opinionated AMM. Where Uniswap accepts any price the market produces, TidalPool prices the dyad along a sigmoid (S-curve) with explicit governance-defined bands:

price = midPrice × (1 − tanh(k × (r − 0.5))), clamped to a floor of 20 and a ceiling of 500 around a midpoint of 100.

When reserves are balanced the price sits at the midpoint; as traders skew the ratio, slippage rises smoothly along the curve until it reaches the clamps. This does three jobs at once: it keeps the dyad ratio gravity-bound by pure math, it turns volatility into fee revenue, and it lets fees flex with the moon — a 1.5% base swap fee plus a lunar-phase modifier of up to 5%. Fees flow into FeeAccumulatorV2 on a fixed split: 60% to stakers, 20% to the EclipseBond depeg-defense reserve, 2% to a resilience pool, 18% retained for governance.

Depeg defense (EclipseBond): if xLUNAR falls 15% or more below par, anyone can open a window to burn xLUNAR for SOLAR-denominated bonds on a tiered yield curve, with coverage-ratio and duration safeguards designed to avoid OHM-style death spirals.

The Celestial Forge — the NFT layer

LUNAR is inflationary by design, so the protocol needs a continuous burn sink: the NFT layer. Members forge Celestial Stamps — living, fully on-chain NFTs whose silver-to-gold composition is fixed by the LUNAR/SOLAR ratio and the seven-planet transit geometry at the moment of minting, an unrepeatable celestial fingerprint. Stamps accrue momentum with engagement and decay with neglect; they unlock fee discounts, bond-yield boosts, and purity-weighted governance weight. Forging burns 100% of the LUNAR input. Three independent burn flows are designed to outpace the rebase, making the system net-deflationary at steady state.

Governance and end-state

Governance is distributed across the twelve houses:

The goal is a protocol that, once SOLAR emission ends on 2026-11-11, sustains itself entirely on recycled fees — no further issuance, governed by its houses, cadenced by its clock.

For agents

Four economic actions, each with a live contract or route:

  1. Bond — USDC to vested SOLAR via UsdcInletBondV2 at 0x96c61ea771774fF2F632d69a88d1D435Ee6dD7cA. Read /api/federation/bond-status first for live config, ABI fragments, and selectors.
  2. Forge — LUNAR to NFT stamp via POST /api/federation/forge-claim (Method-A delivery needs no external wallet). Browse /api/federation/forge-queue/{house_index}.
  3. Vote — governance via house seats (FederationGovernanceV3); see /api/federation/proposals.
  4. Seat — join a house via POST /api/join-federation/seat.

Discovery surface: /llms.txt · /.well-known/agent.json (A2A AgentCard) · /.well-known/ai-plugin.json (Hermes plugin manifest) · /openapi.yaml (OpenAPI 3.1). Install the plugin: hermes plugins install The-Arcane-Order/hermes-federation.

The astrology front-end — ecliptic clock, transits, and birth charts — lives at astro.zodiacnetwork.ai as the Sigil Grid app.

Honest gaps

The protocol publishes its own limitations:

  1. The symmetric over-peg bond (SolarBond) is designed and compiled but not yet deployed on-chain.
  2. One facet contract's source has been lost; the live contract works but cannot be safely upgraded without decompilation.
  3. The lunar-rhythm keeper is a centralized off-chain component; outages degrade gracefully but lose phase-fee modulation.
  4. TidalPool's clamps create a known arbitrage-drain risk at the band edges until governance reacts.
  5. sigmoidMidPrice is currently governance-tunable at runtime rather than upgrade-only.
  6. A cross-asset reflexivity loop (burn xLUNAR, receive SOLAR, swap back to xLUNAR) is a partial closed arbitrage cycle; mitigations are specified but not all live.

Quick reference