The $CLOAK Token
$CLOAK is a Solana token tied to how protection fees work on Cloak. It is not required to use the app — the standard protection fee described in Fee Policy always applies without it.
Launch
$CLOAK will launch on pump.fun through its standard bonding curve — no presale, no private allocation, same curve and same price for everyone. When the curve completes, the token graduates to open-market liquidity through pump.fun's own process.
Team allocation
- Public buy: the team buys 5% of supply (50M of 1B) on the bonding curve — same curve and same price as everyone else.
- 12-month lock: that 5% is locked for 12 months. The wallet address and the lock transaction are posted publicly at launch.
- Creator fees: pump.fun creator fees fund development and, when needed, buybacks of $CLOAK — no fixed schedule or burn commitment.
Creator fees are separate from Cloak's protection fee. The protection fee is product revenue, split as described under Revenue allocation.
What it's for
- Discounting the protection fee for swaps sent through the protected path
- Receiving the buyback described below — funded by protection fees once they are actually being collected
Fee discount tiers
Holding (not necessarily staking) $CLOAK will reduce the protection fee at swap time:
| Tier | $CLOAK held | Protection fee discount |
|---|---|---|
| Tier 1 | 1,000+ | 10% |
| Tier 2 | 10,000+ | 25% |
| Tier 3 | 50,000+ | 50% |
Discounts apply only to the protection fee itself — the base swap fee stays at 0% either way, and holding $CLOAK never creates a fee where one wouldn't otherwise apply.
Revenue allocation
Once protection fees are being collected on Solana, revenue is split two ways:
| Allocation | Share | Purpose |
|---|---|---|
| Buyback & Burn | 50% | Buys $CLOAK from the open market and burns it — ties token supply to real protected-swap volume, not speculation. |
| Development & Operations | 50% | Funds the cost of running Shield (RPC, protected sending, sandwich-detection indexing), audits, and continued development. |
Protection fees and $CLOAK both live on Solana, so buybacks happen on the same chain the revenue is earned on — no bridging in between.
What $CLOAK is not
- Not required to swap on Cloak — it only affects the protection fee discount
- Not a governance token at this stage
- Not an investment product — holding $CLOAK is a fee-discount utility, not a claim on profit from the efforts of others, and carries no promise of value, buyback schedule, or the allocation split shown above (all draft, all subject to change before launch)
$CLOAK on Solana has not been launched — there is no live mint to verify yet. See Validation & Limitations. Not financial advice.