> For the complete documentation index, see [llms.txt](https://whitepaper.usegpu.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.usegpu.app/roadmap/phase-1-mining-first.md).

# Phase 1: Mining First

Establish the initial fee-funded mining system, community participation, and treasury accumulation before physical GPU infrastructure.

Phase 1 is the economic and protocol foundation of USE-GPU. Its principle is **yield before hardware**. The project begins without physical GPUs by design.

The current system centers on the USEGPU token, pump.fun trading activity, a 0.30% creator fee, mining participation, and treasury accumulation. Mining is a token-based participation mechanism. It does not require users to provide GPU computation.

### Fee-funded foundation

```
Trading activity
        ↓
0.30% creator fee
        ↓
USE-GPU treasury
        ↓
35% Mining Pool | 30% GPU Treasury | 15% Holder Sharing
10% Buyback and Burn | 10% Operations
```

The Mining Pool supports community participation. The 30% GPU Treasury allocation accumulates toward future hardware. The other allocations support their defined economic roles.

There is no GPU in Phase 1. Revenue comes from the pump.fun creator fee only. The project builds its community, mining mechanism, and treasury before introducing physical infrastructure.

### Roadmap progression

```
PHASE 1
Mining First
Fee-funded participation
        ↓
PHASE 2
First GPUs
Treasury-funded hardware
        ↓
PHASE 3
GPU Operators
External capacity
        ↓
PHASE 4
Inference API
Developer compute usage
```

The intended progression moves from economic activity to treasury, owned hardware, external capacity, and developer demand. Phase 1 establishes the fee flow, mining mechanism, participation base, and treasury foundation required for later phases.

Trading volume affects creator-fee revenue. Creator-fee revenue affects treasury accumulation. Lower trading activity can therefore slow the transition toward physical GPU infrastructure.


---

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