EXIT Whitepaper

1. Abstract

EXIT is an ERC-20 utility token that rewards people for permanently retiring digital assets they no longer want. Holders exit eligible NFTs (ERC-721 and ERC-1155) or Ethereum ERC-20 tokens through EXIT HOUSE and receive EXIT in the same transaction, turning idle, illiquid assets into a liquid, transferable token they can hold, trade or stake.

EXIT combines three patterns: a clear problem → token → value-flow loop; a burn-for-reward model priced from real market data and bounded by on-chain safeguards; and staking with fixed term yields (not APRs), so rewards at maturity are transparent and known in advance. Not everything is meant to be held forever.

2. Problem & Motivation

Many NFTs and tokens sit in wallets with little chance of recovering their past highs. Thin secondary markets and weak demand leave holders with sunk costs and cluttered wallets. EXIT offers an exit path: retire the asset on-chain, permanently, and receive a predictable quantity of EXIT based on its market value.

3. System Overview

Actors

• Holder: chooses an eligible asset, reviews a signed quote, and exits it from their own wallet.
• Pricing service: values the asset from market data and signs a short-lived quote (EIP-712) with a key that never leaves a hardware security module (AWS KMS).
• ExitRouter (on-chain): verifies the quote, enforces eligibility and limits, has the asset disposed of, and pays the reward from the RewardVault.
• Treasury and governance: the EXIT HOUSE multisig, acting through a 48-hour public timelock, manages releases, liquidity and parameters.
• Community: holds, trades and stakes EXIT.

High-level flow

1. The holder selects an eligible asset (Section 6) in EXIT HOUSE.
2. The pricing service values it and signs a quote that fixes the qualifying value, the reward rate and the reward.
3. The holder confirms: they approve the exit adapter for the asset (a token for the exact amount), then exit, paying the exit fee in ETH with the exit (Section 5.4).
4. ExitRouter checks the quote and the limits, the adapter burns the asset or sends it to 0x000…dEaD, and the reward is paid from the RewardVault, all in the same transaction. If any check fails, nothing happens.
5. Holders may stake EXIT for fixed terms (Section 9).

4. Token Specifications

• Standard: ERC-20
• Name and symbol: EXIT
• Decimals: 18
• Supply: fixed at 10,000,000,000 EXIT, all created once at genesis

Minting and burning

• Genesis mint to the six allocation buckets (Section 7). The token has no mint function and refuses any mint after genesis.
• Exit rewards are paid from the pre-minted Exit Rewards bucket held by the RewardVault. No new EXIT is ever created.

Upgradeability and controls

EXIT, ExitRouter and ExitStaking are upgradeable (UUPS) so that security defects can be repaired. Every upgrade needs the EXIT HOUSE multisig and then waits out a 48-hour public timelock; storage layouts are validated before each upgrade, so balances and positions carry over. The token rejects any upgrade that changes its supply cap, and its code can be sealed permanently. The RewardVault, FounderVesting and the exit adapters are not upgradeable. Contract addresses, versions and the upgrade log are published live on the Protocol page.

5. Value & Reward Mechanics

5.1 Reward formula

Reward_EXIT = R × V

• V is the asset's qualifying USD value: its market value, capped at $5,000 per exit.
• R is the reward rate, fixed on-chain: 1,000 EXIT per $1 during the Launch Month (the first 30 days after launch), then 100 EXIT per $1.
• The rate is decided by chain time and bound into each quote, and a Launch Month quote can't be used after the Launch Month ends.
• Example: exit an NFT valued at $250 → 250,000 EXIT in the Launch Month, 25,000 EXIT afterwards.

5.2 Valuation sources (pricing policy)

• NFTs (ERC-721 and ERC-1155): OpenSea market data converted with Chainlink's ETH/USD feed. The value is the higher of the collection floor and its best whole-collection offer, capped at twice the collection's 30-day average sale price. The collection needs at least 5 sales in the last 30 days.
• ERC-20 tokens: the token's Chainlink USD price feed where one exists. Otherwise its deepest Uniswap market (v3 or v2) against WETH, USDC or USDT holding at least $250,000, priced at the lower of the 30-minute average and the current price, and refused while those differ by more than 5%.
• A curated price can be set for a specific asset; the lower of the curated and the market price is used.
• Valuations are conservative: when no trustworthy price is available, the asset shows as "price unavailable" rather than being estimated.

5.3 Limits (enforced on-chain)

• Minimum value: $0.10 per exit.
• Per exit: $5,000 of qualifying value.
• Per wallet: $25,000 of qualifying value per day.
• Per asset: $10,000 per day for any collection or token that isn't individually allowlisted.
• Protocol-wide: 100,000,000 EXIT in rewards per day.
• Rewards are paid only from tranches released in the RewardVault: 300,000,000 EXIT at launch, then the next 300,000,000 automatically whenever 30,000,000 or less is left (at most once a day; the multisig can pause it).

5.4 Exit fee

Fee_ETH = 2% × V ÷ ETH price

• Each exit pays a fee of 2% of its qualifying value V: 1% for the EXIT liquidity pool and 1% for the treasury. It is paid in ETH with the exit, on top of gas, and doesn't reduce the reward.
• The pricing service converts the fee at Chainlink's ETH/USD price and binds the exact amount of ETH into the signed quote. ExitRouter accepts exactly that amount and forwards it within the same transaction, so the contracts never hold it.
• Example: exit an NFT valued at $250 → a $5.00 fee (0.002 ETH at $2,500 per ETH), and 250,000 EXIT in the Launch Month.
• The rate and where the fee goes change only through the 48-hour timelock, and the contract never allows a rate above 10%.

6. Eligibility Rules

• Cut-off: the asset must have existed before October 1, 2026 (00:00 UTC). For NFTs, the collection was live on OpenSea before then, and each NFT in it follows the collection's rules; for tokens, the contract was deployed on Ethereum mainnet before then.
• Minimum valuation: $0.10 at the time of exit.
• NFT coverage: any ERC-721 or ERC-1155 collection that meets the market safeguards in Section 5.2, except NFTs that are financial positions (Uniswap v3 and v4 liquidity positions, Lido stETH withdrawal NFTs): each one holds a different amount, so a collection price can't value it.
• Token coverage: any ERC-20 with a qualifying price source in Section 5.2 that transfers exact amounts. Fee-on-transfer, rebasing and similar tokens are refused.
• Irreversibility: an exited asset is burned through its own burn function when the collection is set up for it, or sent to 0x000…dEaD, an address no one controls. Each exit is recorded on-chain with its full signed quote.
• Exclusions and compliance: EXIT itself can't be exited. EXIT HOUSE may refuse, block or pause any asset, wallet or asset type, and may restrict access to the interface to meet legal and compliance requirements.

7. Token Distribution

Total supply: 10,000,000,000 EXIT, minted once at genesis.

7.1 Vesting and locks

• Founder: 1% of supply (100,000,000 EXIT) at launch, then the same at the end of each of the next 14 months: 15 unlocks, fully vested 14 months after launch. No cliff. FounderVesting has no admin and no upgrade path; its schedule follows the on-chain launch and can never be accelerated.
• Treasuries: Liquidity, Protocol Treasury and Ecosystem each sit in their own on-chain treasury contract. Withdrawals pass through the 48-hour timelock and are visible on the Protocol page before they execute. The one exception is the launch pool's 600,000,000 EXIT, which the deployment itself moves from the Liquidity treasury to the EXIT HOUSE multisig, publicly on-chain, so the pool can open at launch.
• Exit rewards: paid only by the ExitRouter, and only within released tranches.
• Staking rewards: move only to the staking contract.

7.2 Launch availability

On top of these, the founder's first unlock, 100,000,000 EXIT (1% of supply), is released to the founder's wallet at launch; the rest follows monthly.

8. Treasury & Liquidity Policy

The EXIT HOUSE treasury will:

• Open the EXIT/WETH pool on Uniswap v3 at the 1% fee tier with EXIT only: 600,000,000 EXIT from the Liquidity bucket, moved to the multisig by the deployment and placed at and above the opening price. The pool needs no ETH to open, and EXIT can be sold into it only after someone has bought. The opening price and range are published at launch (Appendix A).
• Deepen the pool from every exit: the 1% liquidity part of each exit fee is added to the pool as ETH (wrapped to WETH), just below EXIT's price, where it deepens the bids. The pool's own 1% trading fees are collected and split between the pool and the treasury.
• Oversee exit-reward tranches, which release automatically as exits use them (the multisig can pause that, or release and shrink tranches by hand), and top up the staking pool from the staking reserve.
• Support operations, infrastructure and ecosystem growth with transparent, on-chain disbursements.
• Move funds only through the 48-hour timelock, so every withdrawal is public before it executes.

9. Staking

EXIT supports fixed-term, non-transferable stake positions with a fixed reward per term. These are term yields, not APRs. Positions can't be withdrawn before maturity, and a wallet can hold several positions at once.

9.1 Terms and fixed term yields

Governance may add terms through the 48-hour timelock, and may close a term to new positions at once. Existing positions always keep the term and yield they were opened with.

9.2 Rewards formula

Reward_EXIT = P × r
Payout = P + (P × r)

P is the stake principal; r is the fixed yield for the chosen term, as a decimal.

• Stake 10,000 EXIT for 7 days (0.7%) → reward = 10,000 × 0.007 = 70 EXIT (payout 10,070 EXIT).
• Stake 25,000 EXIT for 75 days (12.5%) → reward = 25,000 × 0.125 = 3,125 EXIT (payout 28,125 EXIT).
• Stake 50,000 EXIT for 360 days (40%) → reward = 50,000 × 0.4 = 20,000 EXIT (payout 70,000 EXIT).

9.3 Mechanics and policies

• Early unstake: not permitted. Principal is locked until maturity.
• Rollover: never automatic. At maturity, claim principal and reward, or restake the full payout into any open term.
• Funding: rewards come from the 1,500,000,000 EXIT staking-rewards bucket; 500,000,000 funds the staking pool at launch and the multisig tops it up. A position opens only if its full reward is available, so every open position is fully backed.
• Pauses: new stakes can be paused in an emergency; claims of matured positions can't be.

9.4 Implementation notes

• Each position records its principal, term, start, maturity, fixed yield and status on-chain.
• Events: StakeOpened, StakeClaimed and StakeRestaked, indexed for the History page.

10. Product Roadmap

Phase I: launch

• EXIT token and contracts deployed on Ethereum mainnet, with verified source code.
• EXIT HOUSE at exit.house: exit NFTs (ERC-721 and ERC-1155) and ERC-20 tokens.
• Market-data pricing for NFTs (OpenSea × Chainlink) and tokens (Chainlink and Uniswap).
• Fixed-term staking, with several positions per wallet.
• Dashboard, History and the public Protocol page: addresses, upgrades, governance and scheduled changes.

Phase II: post launch

• Bug bounty program.
• Wider coverage: more collections set up for native burns, and more price sources.

11. Governance

• The EXIT HOUSE multisig (a Safe) proposes and executes changes through a 48-hour public timelock: upgrades, limits, asset settings, quote signers, staking terms and treasury withdrawals.
• Pausers, the multisig and the founder's hardware wallet, can act instantly to pause exits or new stakes, disable an asset or an adapter, close open eligibility for an asset type, or revoke a quote signer. None of these can move funds.
• Every change is emitted on-chain and listed on the Protocol page, including changes still waiting out the timelock.

12. Security

• On-chain safeguards: quotes bound to wallet, asset, amount, rate, reward and expiry; single-use quote ids; exact-amount disposal checks; per-exit, per-wallet, per-asset and protocol-wide caps; a tranche-limited RewardVault; instant pause.
• Key management: the quote-signing key lives in AWS KMS and never leaves it; governance keys are held in the EXIT HOUSE Safe.
• Interface: an edge network with DDoS protection, rate limits, a strict content security policy, and an operations console on its own address behind Sign-In with Ethereum.
• A bug bounty after launch.

13. Risks & Disclosures

• Market data risk: floor prices, offers and token prices can change quickly, be manipulated or become unavailable. Safeguards may refuse an asset or pause exits.
• Market risk: EXIT's price is set by the market, so the value of any reward may fluctuate.
• Liquidity risk: thin liquidity can cause slippage and volatility. The pool opens with EXIT only, so its depth on the buy side comes from purchases and from exit fees.
• Smart contract risk: bugs may exist. Upgrades replace code and carry their own risk.
• Irreversibility: exits are permanent, and blockchain transactions can't be undone.
• Regulatory risk: rules evolve, and access may be restricted in some jurisdictions.

Full disclosures are on the Risks page and in the Terms and Conditions.

14. Legal & Use

EXIT is a utility token intended for use within the EXIT HOUSE ecosystem. It is not an investment contract or a promise of profits. Nothing in this paper constitutes financial, legal or tax advice; conduct your own research. Use of EXIT HOUSE is governed by the Terms and Conditions.

15. Implementation Notes (Developer Overview)

• Contracts: EXIT (ERC-20, UUPS); ExitRouter (UUPS) with ERC-721, ERC-1155 and ERC-20 exit adapters; RewardVault and its TrancheKeeper; ExitStaking (UUPS) with its staking-rewards reserve; FounderVesting; three ExitTreasury contracts; ExitTimelock.
• Quotes: EIP-712 ExitQuote(quoteId, wallet, asset, assetType, exitMethod, tokenId, amount, usdValue, rewardRate, reward, fee, deadline), signed by an address holding QUOTE_SIGNER_ROLE.
• Events: AssetExited(quoteId, wallet, asset, quote, epoch), ExitRewardPaid(quoteId, wallet, reward, rewardRate), ExitFeePaid(quoteId, wallet, fee, toLiquidity, toTreasury), ERC721Exited, ERC1155Exited, ERC20Exited, StakeOpened, StakeClaimed, StakeRestaked, TrancheReleased, and every governance and configuration change.
• History: an indexer feeds the History page (type, transaction, block, from, to, with filters), the Dashboard and the Protocol page.

16. Example Scenarios

• Exit 1 NFT valued at $100 in the Launch Month → 100,000 EXIT (10,000 EXIT after it), for a $2.00 exit fee in ETH.
• Exit $50 of a long-tail ERC-20 in the Launch Month → 50,000 EXIT, subject to the token's market safeguards.
• Exit an NFT valued at $7,500 → its qualifying value is capped at $5,000 → 5,000,000 EXIT in the Launch Month, and the fee is $100.00 (2% of the capped value).
• Stake 10,000 EXIT for 270 days (32.5%) → reward = 10,000 × 0.325 = 3,250 EXIT (payout 13,250 EXIT).

17. Milestones & KPIs

• Launch: contracts live and verified, addresses published, liquidity seeded, circulating-supply snapshot published.
• Launch Month: exits, unique wallets, EXIT staked, and market-data coverage.
• Quarterly: treasury and supply report, parameter changes, security updates.

Appendix A: Launch Disclosures

Published at launch on the Protocol page:

• Contract addresses and implementation versions (EXIT, ExitRouter and adapters, RewardVault, ExitStaking, FounderVesting, treasuries, timelock), with verified source code.
• Market-data sources and safeguards.
• Liquidity pool, pair and range.
• Multisig signer set, quote signer addresses and governance policy.