Action Tokens: Origin Rewards Whitepaper
Updated August 2025
Executive Summary
Action Tokens' Origin Rewards system is a soft staking mechanism that rewards holders of both a PLOT Token and a PLOT NFT with monthly distributions of ACTION tokens. This mechanism is designed to incentivize long-term alignment, commitment, and creative development within the Action ecosystem — all while complying with current U.S. regulatory guidance on staking and digital assets.
This document outlines the Origin Rewards system, how it works, its compliance with regulatory frameworks (including the SEC's August 5, 2025 clarification on Liquid Staking Activities), and future enhancements.
Background
Action Tokens powers a platform where creators, brands, and communities can own customizable PLOTs—virtual spaces on a geospatial or web map—and unlock experiences, assets, and interactions via Augmented Reality (AR), Virtual Worlds, or Web3 utilities.
To encourage ongoing engagement and value alignment with the ecosystem, Origin Rewards provide a mechanism for rewarding those who hold both a PLOT NFT and a PLOT Token.
What Are Origin Rewards?
Origin Rewards are monthly distributions of ACTION tokens given to users who:
📌 As long as both are present in the wallet, the user is considered to be soft staking and will receive rewards.
If a user sells or transfers either asset, their rewards automatically stop.
Soft Staking Model
Unlike traditional staking that requires locking assets in a smart contract, soft staking relies on wallet-based ownership as proof of stake. The Origin Rewards model operates under these principles:
| Property | Origin Rewards |
|---|---|
| Asset Custody | User retains full control |
| Reward Trigger | On-chain snapshot of holdings |
| Lock-in Period | None (rewards stop when sold) |
| Slashing Risk | None |
| Liquidity Impact | Assets remain liquid |
| Staking Receipt Token | Not currently implemented |
Regulatory Compliance
On August 5, 2025, the U.S. Securities and Exchange Commission (SEC) issued a formal statement regarding Liquid Staking Activities, noting:
"It is the Division's view that 'Liquid Staking Activities'… do not involve the offer and sale of securities."
This aligns directly with our Origin Rewards structure:
| Requirement | Origin Rewards Model |
|---|---|
| Participation is voluntary | Yes |
| No investment contract | Yes |
| No expectation of profit solely from others' work | Yes |
| Staking involves user activity | Yes (holding + community alignment) |
| Liquid ownership | Yes |
| Assets withdrawable anytime | Yes (via wallet transfer/sale) |
Compliance Disclosure: Origin of the PLOT Token
The PLOT token was originally made available for purchase as a utility and governance token, designed to support the early development of the Actionverse platform. Purchasers were given the ability to participate in future governance decisions and to unlock access to customizable plots within the ecosystem.
No passive income, dividends, or profit-sharing was ever promised to PLOT token holders. The token has always been positioned as a functional asset within a broader creative platform, and its current use aligns with soft staking models outlined in SEC guidance (August 2025) on liquid staking activities.
The Origin Rewards program builds on this foundation by offering ACTION token rewards to users who actively participate in the ecosystem by holding their PLOT Token and PLOT NFT. These rewards are not guaranteed, and they cease the moment a user exits their stake or transfers their assets.
This approach ensures that rewards are based on active, voluntary participation — not investment expectation — and reflects our commitment to regulatory alignment and long-term sustainability.
PLOT Token Information
To participate in Origin Rewards, you must hold the official PLOT token. Please verify you have the correct token using the information below:
⚠️ Important: Only the PLOT token with the exact issuer address above is eligible for Origin Rewards. Always verify the token details before participating.
Goals of the Origin Rewards System
Incentivize Long-Term Engagement
Reward those who believe in the platform and continue to develop their PLOT.
Maintain Ecosystem Health
Encourage stability by aligning rewards with user retention and creative activity.
Support Active Creators & Brands
Amplify those who are building on their PLOT and contributing to the ACTIONverse.
Comply with Regulatory Frameworks
Operate transparently and in accordance with global digital asset guidance.
Technical Implementation
Snapshot Model:
On a recurring basis (monthly or block-based), the system checks wallet addresses for the presence of:
- A valid PLOT NFT
- A corresponding PLOT Token balance
Reward Distribution:
ACTION tokens are distributed to eligible addresses via smart contract or scheduled backend process.
Unstaking Condition:
If the user transfers or sells either the NFT or token:
They are automatically removed from the next reward cycle.
Future Enhancements
To move even closer to full liquid staking alignment (optional, but now legally safer), the following upgrades are under consideration:
On-chain Opt-In Registration
Users could opt-in to "Register My Stake" for advanced analytics, boost tiers, or leaderboard tracking.
Reward Tiers
Bonuses for continued holding, interaction, or creative use of the PLOT.
Governance Boosting
Staked PLOT holders may receive increased weight in governance decisions.
Summary
Action Tokens' Origin Rewards system is a compliant, secure, and community-aligned model for rewarding users who stake their belief in the ecosystem. By holding both a PLOT NFT and PLOT Token, users receive ongoing incentives — without relinquishing control of their assets or facing regulatory uncertainty.