The Cigarette Token project has 3 goals that motivate us:
1. To be the first project that people think of when someone says "punk token".
2. To be the first project that people think of when it comes to Harberger Taxes.
3. For the "CEO of CryptoPunks" role to gain more prestige & recognition among punks and non-punk holders.

There were 1 billion CIG tokens minted and sent to the CryptoPunks contract for claiming at the beginning. Each punk can claim 100k CIG. At least a third of all the punks claimed their CIG so far.

The issuance was set to 1000 CIG per block at the beginning, where new CIG is being issued and distributed as Liquidity Mining rewards to those who bankroll CIG and ETH for the decentralized exchange pool (see The Cigarette Factory). The CEO can change the rewards by 20% after every 2nd day (14400 blocks). The result of the change must always be between 1000 and 0.0001 CIG. This means that the issuance can never be more than 1000 per block, or less than 0.0001 CIG per block.

Although the issuance can never be turned off, it can be set to a minimum of 0.0001 CIG per block. That would mean there would be 0.72 CIG entering per day.

There is no tax or fee on transfers or trading. The game element is completely optional.

The deployer has permanently locked 72,159 SLP tokens with around 300 million CIG inside the decentralized exchange pool, so that it cannot be 'rugged'. About $56k USD value on the day of transfer. See the full statement

No Admin keys / "team allocations" / VCs. (The Admin keys are used for deployment and burned after)

The CEO has great power and responsibility, which is the ability to control the issuance of the CIG token itself. (Provided that the changes are made within the bounds allowed by the contract.). Also, the CEO can officially represent the project and become a spokesman/spokeswoman, and be a representative for the community.

The second benefit is the graffiti message: The CEO sets the tone of the CryptoPunks with a custom message (32 characters).

Thirdly, each CEO will have a special role assigned to them in the discord. They will also be inducted into the "CEO Hall of Fame"

Fourthly, an NFT will be transferred to the CEO. This is a 1/1 NFT, which only the current CEO holds. Only the CEO can change the metadata of this NFT, if they want, (but cannot sell or transfer it).

Additionally, the CEO may get bonus perks on 3rd party sites. For example, nftpricefloor.com is using the current CEO's profile picture to represent the cryptopunks collection.

We emphasize that holding the "CEO of CryptoPunks" is not just a ceremonial role, it carries important responsibility, which is the ability to control the inflation of the Cigarettes token itself. Effectively, the token is governed through harberger taxes, and the Cigarette Token is the first crypto project in history to use this form of governance system. The CEO must always find the right balance between setting attractive rewards to those who bankroll the exchange pool, and also making sure not to upset the holders by setting the issuance too high. Failing to do so may get the CEO ousted.

New Cigarettes are made in the Cigarette Factory at every block.

Newly made cigarettes are distributed as rewards to those who stake their CIG/ETH Sushi Liquidity Pool (LP) tokens.

To get these LP tokens, you will need to Add Liquidity to the CIG/ETH pool on Sushi.

Staking is optional and is not needed to participate, it is just a way to reward liquidity providers who take on the increased risk.

1. Anybody can buy the CEO title at any time using Cigarettes. (The currency of the cryptopunks)
2. When buying the CEO title, you must nominate a punk, set the price and pre-pay the tax.
3. The CEO title can be bought from the existing CEO at any time.
4. To remain a CEO, a daily tax needs to be paid.
5. The tax is 0.1% of the price to buy the CEO title, to be charged per day.
6. The CEO can be removed if they fail to pay the tax (by calling the burnTax method). A reward of CIGs is paid to the whistleblower. The reward, (paid in CIG), is the amount by which the CEO defaulted.
7. After Removing a CEO: A dutch auction is held, where the price will decrease 10% every half-an-epoch.
8. The price can be changed by the CEO at any time. (Once per block)
9. A day is 7200 blocks. (Assuming 12 sec block time on Ethereum)
10. All the Cigarettes from the sale are burned.
11. All tax is burned (See the rationale for this)
12. After buying the CEO title, the old CEO will get their unspent tax deposit refunded
13. The CEO can increase or decrease the CIG farming block reward by 20% every 2nd day! However, note that the issuance can never be more than 1000 CIG per block, also never under 0.0001 CIG.
14. THE CEO gets to hold a NFT in their wallet. There will only ever be 1 NFT. The purpose of this NFT is so that everyone can see that they are the CEO when viewing their wallet. IMPORTANT: This NFT will be revoked once the CEO title changes. Also, the NFT cannot be transferred by the owner, the only way to transfer is for someone else to buy the CEO title! (Think of this NFT as similar to a "title belt" in boxing.)

The contract's source code has been verified on Etherscan, but it hasn't been formally audited. In the currently deployed contract, there is a bug with the withdraw function, and a backup function is used instead as a workaround, (hence it's not possible to partially withdraw the stake, only all at once) .

A lot of unit tests were prepared for the contract, however, some things such as the "Game Theory" are impossible to test, unless real incentives are used. e.g. There is no way to predict if the CEO will decrease issuance, but it's assumed that if the CEO is a large CIG holder, then they would want to decrease issuance over time.

The contract is not upgradable, and ownership is renounced shortly after deployment. This means that the contract will run autonomously without the author's intervention forever.

Providing liquidity to the CIG/ETH pool is not for everyone, it's very risky, and mostly an altruistic endeavor. You may suffer "impairment losses". Be sure to DYOR about the ins and outs of providing liquidity. If you are providing liquidity, the protocol does pay rewards for the risk that is taken. The APR may often fluctuate, and is only shown as a reference.

Why not incorporate the CEO of CryptoPunks in your contracts as an additional "perk" for the CEO? Some ideas:

• A %1 voting power boost in your protocol
• Ability for the CEO to change some part of your website, eg. if you are running a NFT marketplace, let the CEO choose their recommended NFTs
• Let the CEO call the "ribbon tape" methods in your contracts. "Ribbon tape" methods are methods that are called to launch a contract or complete some other predefined initialization, but are otherwise symbolic, similar to a politician who "cuts the ribbon tape" when something opens.
• Similar to the above idea, let the CEO be the first to do something when you launch. So if you launched a 10k pfp, let the CEO have the first pick
• Let the CEO have the final say whenever a proposal in your protocol should pass, in other words, "veto" rights.
• Let the CEO control a parameter by allowing them to raise or lower it by small incidents. Eg. Raise or lower the fees by a few basis points every week.

How? You can read what address is the CEO by querying The_CEO variable on the contract. You can also read other variables, such as CEO_tax_balance (amount the CEO prepaid), taxBurnBlock(block number of CEO's last tax burn) and finally the CEO_price (take-over price set by the CEO).

Why might you read the additional values? These will allow you to determine how serious the CEO is, and how long they have been a CEO. Eg. if the CEO_price is high, and they have prepaid enough CIG to stay CEO for 14 days, and already been a CEO for 7 days, then you know that the CEO is really smoking their CIG hard ;-)

The CEO cannot really fake these values without burning CIG or being taken over. Eg. if they set a high take-over price, they will need to put up a lot of their CIG to be burned. Likewise, set too low, and another CEO will take them over. Which is why you would tend to trust figures from a CEO who has been longer in the position.

This leads to another question! Could the CEO-title price be used as a type of oracle in other contracts? It may! For example, it could be used as a way to set the price of an asset, by using the weighted average price of the CEO-title as an anchor. However, one of the limitations is that the current contract doesn't record the block-number for when the price was changed last, so a workaround would be to read the taxBurnBlock value and give higher weight based on the difference: CurrentBlock - taxBurnBlock

Note that anybody can call the method that burns the CEO's tax, so it's possible that the taxBurnBlock could be set to the current block number at any time, which is another limitation for implementing an oracle. Although this method doesn't give any benefit to the caller, other than burning gas, unless the CEO is going to default, then the caller gets a reward in CIG for their trouble. (Perhaps if this contract was designed differently, it should not allow burnTax() to be called by anyone unless it would result in a default. Also, recording the block number for when the CEO last changed the price could have also been helpful)

Finally, a word of caution: it's totally possible for a CEO to be in only for as little as 1 block, so if you allow the CEO to change something, be aware of this gotcha! To work around this, you could take the difference Block Number - taxBurnBlock and make sure it's at least 1 day, say, 14400 blocks!