TAPE2
Economics
TAPE2 has three flows of money and one token. The flows are set by the contract at launch and do not change afterwards.
The premium
The buyer pays the premium in WETH when buying a ticket. The contract keeps 1% as the protocol fee and forwards 99% to the writer in the same transaction. The writer keeps it whether or not the ticket is exercised. The premium is the chain's quote plus the writer's markup, which may be anything from zero to 100% of the quote.
Worked example at the numbers measured on 2026-10-15. A writer locks 100,000 CASHCAT at a 0% markup. Spot is 0.0000531 WETH per coin, so the position is worth 5.31 WETH. The contract's 7-day at-the-money premium is about 9.5% of spot, which is 0.504 WETH. The buyer pays 0.504 WETH; the writer receives 0.499 WETH; the fee is 0.00504 WETH, of which 0.00252 WETH waits in the burn pot and 0.00252 WETH goes to the treasury.
The strike
On exercise the holder pays strike times amount in WETH and receives the coins. The contract passes the WETH to the writer. No fee is taken on exercise.
The fee and the burn
| Share of each premium | Goes to |
|---|---|
| 99% | The writer |
| 0.5% | Buying TAPE2 on its pool and burning it |
| 0.5% | The treasury address set at deployment |
The burn runs through a crank, crank(wethIn). Anyone may call it; it takes WETH from the burn pot, swaps it for TAPE2 on the TAPE2 pool, and burns what it bought. The swap must return at least the 30-minute TWAP amount of TAPE2 less 3%, so a crank cannot be sandwiched for more than that. There is no admin in that path: the pot's WETH cannot be withdrawn, only burned through the swap. The TAPE2 token address is a launch constant set once when the token exists; the site shows no address before then.
What a million dollars of premiums burns
At 0.5% of premium volume, $1,000,000 of premiums buys and burns $5,000 of TAPE2. Premium volume is a fraction of notional: at a 9.5% at-the-money premium, $1,000,000 of premiums corresponds to about $10.5 million of coins being optioned. The burn ledger on the landing page shows the running totals once there are any.
Open interest cap
Coins under live offers and calls per market may not exceed 10% of the pool's own coin balance (OI_CAP_BPS = 1000). The cap exists so that the options market stays small relative to the pool that prices it; a market larger than its pool is a market someone can move.
Who earns what, in plain words
- Writers earn the premium every week they write. On the measured numbers that is about 9.5% of spot for a 7-day at-the-money call at the chain's price, before any markup and before anything happens to the coin.
- Buyers pay that premium for a capped, 7-day bet: the most they can lose is the premium, and the most they can make is unbounded.
- TAPE2 holders see supply fall by half of every fee. They earn nothing else; there is no revenue share and no staking.
- The protocol keeps half of the fee.
What the site shows before launch
Zero premiums, zero tickets, zero TAPE2 burned, zero coins locked. These are true. The first premium starts the ledger.