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Documentation Index

Fetch the complete documentation index at: https://docs.driftidentity.xyz/llms.txt

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Skill Drift does not issue an inflationary reward token. Instead, the protocol sustains itself through three discrete fee mechanisms, each tied directly to user activity. Every ETH that flows into the system comes from real people performing real actions, which means protocol revenue scales with engagement rather than token price.

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Fee mechanisms

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Mint fee

When you create your Drift ID for the first time, you pay a one-time mint fee of approximately 0.001 ETH. This fee accomplishes two things: it deters spam registrations, and it contributes to initial protocol liquidity. You pay it once and never again for the same wallet.

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Oracle fee

Each time the Oracle records a verified action report on your behalf — for example, confirming you completed a skill challenge — you pay approximately $0.50 equivalent in ETH. This fee covers the Oracle’s gas costs and infrastructure. The fee scales with the number of reports you submit, not with time.

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Drift Tax

Every duel on the platform carries a 2.5% protocol tax on the total pot. When a challenge resolves, the winner receives 97.5% of the combined stake; the remaining 2.5% flows to the Drift Treasury.

Mint fee

~0.001 ETH, one-time per wallet. Prevents spam and funds initial protocol liquidity.

Oracle fee

~$0.50 equivalent per verified action report. Covers Oracle gas and infrastructure costs.

Drift Tax

2.5% of every duel pot. Deducted before the winner receives their payout.

No inflation

Zero inflationary token issuance. All protocol revenue originates from user activity.

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Treasury usage

Fees collected by the protocol accumulate in the Drift Treasury. The treasury funds:
  • Protocol maintenance and Oracle infrastructure running costs
  • Future ecosystem incentives such as seasonal rewards and guild grants
  • Security audits and contract upgrades as the protocol matures
  • DAO treasury once governance launches in Phase 3

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Value flow

The diagram below traces where each ETH unit goes when you interact with the protocol: 
User Activity
    │
    ├──► Mint Fee ─────────────► Treasury
    │
    ├──► Oracle Fee ───────────► Oracle Operations
    │
    └──► Duel Stake ───────────► Winner (97.5%)
              │
              └──► Drift Tax ──► Treasury (2.5%)

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No inflation principle

Unlike most Web3 protocols, Skill Drift does not depend on token inflation to reward participants. Every ETH in the system comes from users minting profiles, submitting reports, and staking duels. This means the protocol’s economics are coherent at any scale: costs scale with usage, and revenue scales with the same usage.
The protocol is designed to be profitable at any scale because costs scale with usage, not token price.