PUNCH: A CAPPED DESIGN. PUNCH20: FIXED TERMS.

The 725M user allocation is a stock, not an automatic emission schedule. Unused capacity remains unreleased, and no reward domain may authorize issuance beyond this finite envelope or the one-billion supply ceiling.

The Punch design places every class beneath one immutable global ceiling, a class lifetime budget, and an aggregate class-epoch release cap. Only a terminal full close or liquidation may create one reward record for a position; partial decreases still realize normal PnL and fees but accrue no PUNCH. Exhaustion reduces an incentive without changing margin return or profit settlement.

Punch20 (PUNCH20) is a fixed-ratio redemption voucher backed by a dedicated 50M PUNCH supply reserve. Each redemption burns 20 PUNCH20 for 1 PUNCH. The voucher is not equity, revenue, or a claim on Punch.

PUNCH20 contract: 0xf6a4b3a27467be2c9f4b237e5f9b7d90eeb1592b

• Fixed conversion. Twenty PUNCH20 correspond to one PUNCH at TGE against the dedicated redemption inventory.
• Bounded reserve. Aggregate PUNCH20 redemption cannot exceed the 50M PUNCH allocation inside the one-billion hard cap.
• Redemption stays open. Once redemption begins, the redemption window does not close.
• Starting incentive inventory. Redeemed PUNCH can be deposited into sPUNCH and duration-locked before a later position, contributing toward that position's bounded reward boost.
• sPUNCH exposure. Existing shares participate pro rata in later PUNCH donations to the vault without minting competing shares.

In the design, staking PUNCH mints proportional sPUNCH shares. Punch uses a class-aware fee design in which source-bound junior fees may reach a shared buyback rail only after senior settlement obligations.

Each class's junior amount is allocated among that class's backstop, a shared buyback rail, operations, and pool retention; integer remainder stays with the source pool. The shared rail cannot spend while Core Pool FIFO debt remains and must satisfy settlement-token, timing, TWAP, and slippage gates. Purchased PUNCH is split between a bounded burn destination and an exact staking-vault donation. The donation mints no shares, so existing PUNCH backing per sPUNCH share cannot fall; any resulting reward boost is snapshotted only for later positions.

PUNCH is designed for a LayerZero OFT topology so connected domains share one supply invariant rather than independent inflation. Reward accrual, claim inventory, and cross-domain transport remain distinct ledgers beneath the same hard cap. See the architecture for the separation between trade settlement and token claims.