Appendix A - $SOUL Locking & Circulating Supply Stress Test

This appendix provides a conservative stress analysis of SOUL locking demand relative to circulating supply during the early phases of the Necro League ecosystem.

The objective is to demonstrate that Necron Amulet activation mechanics remain functional and sustainable under realistic and adverse conditions.

A.1 Circulating Supply Assumptions

During the first six months following launch, SOUL circulation is intentionally constrained.

The following allocations contribute to circulating supply:

• SKULLY Holders Airdrop 15% of total supply (150,000,000 SOUL), subject to consumption penalties on early unlocks.

• Liquidity Provision Initial liquidity deployment equivalent to approximately 9–11 million SOUL at reference pricing.

• Ecosystem / Future Utility Allocation 27% of total supply, subject to a 3-month cliff followed by 39 months of linear vesting, resulting in limited availability during early phases.

All other allocations, including the Studio Treasury, remain fully locked during this period.

Estimated maximum circulating supply by month six: ≈ 180,000,000 SOUL

A.2 Necron Amulet Locking Requirements

Necron Amulets require SOUL to be locked to become eligible for profit participation.

• Locking is optional but required for activation

• Locked SOUL may be unlocked at any time, subject to consumption penalties

• Dividend points scale with rarity and the square root of locked SOUL

• Maximum lock caps apply per rarity

A.3 Minimum Lock Scenario

Assuming all Necron Amulets are activated using only the minimum required SOUL:

Estimated total locked SOUL: ≈ 65,000,000 SOUL

This represents approximately 36% of circulating supply by month six.

This scenario is considered conservative and sustainable.

A.4 Expected Usage Scenario

Based on projected participant behavior, it is expected that:

• All Amulets are activated

• Approximately half of Amulets lock near their maximum cap

• The remainder remain near minimum lock levels

Under these assumptions, estimated locked SOUL ranges between:

≈ 130–150 million SOUL

This creates strong but controlled scarcity while preserving sufficient free-float liquidity.

A.5 Theoretical Maximum Scenario

A theoretical scenario in which all Amulets lock SOUL at their maximum caps would exceed early circulating supply.

This outcome is not practically achievable due to:

• limited early circulation

• gradual vesting schedules

• diminishing returns on additional locked SOUL

• competition between participants

This scenario serves only as a mathematical upper bound.

A.6 Design Summary

The SOUL locking system is designed to:

• operate safely within constrained early circulation

• scale naturally as vesting progresses

• discourage speculative velocity through consumption mechanisms

• avoid reliance on inflation or emissions

The system remains robust under conservative, realistic, and stress-tested assumptions.

Appendix Note

This appendix is informational only and does not constitute a prediction or guarantee of future market behavior.