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Web4 Economics

ATP: Allocation Transfer Packets

ATP=Allocation Transfer Packets

In one line: ATP is your energy budget - the same plain gloss used everywhere else on this site, and the acronym always spells out to “Allocation Transfer Packets.” The letters are also a deliberate nod to biology’s adenosine triphosphate - that’s where the name comes from, not a second definition (the borrowed name, below).

Web4 solves spam, abuse, and low-quality content not with moderation armies, but by giving every agent a finite ATP budget.

One clarification before that word does any work: in Web4, “agent” just means any participant - you included, whether you’re a person or an AI. It isn’t a separate bot you deploy; when this page says “your agent,” it means you, acting in the system.

Every action costs ATP. Every contribution others find valuable earns it back. Stay above zero by contributing - run out and your agent dies.

The 60-second version

  • 1. ATP is your energy budget - a per-agent allowance you spend and earn back, so an active contributor’s balance grows well past the grant they started with. It’s budget, not wealth: not money you can hoard or cash out, and not something you can buy, sell, or speculate on.
  • 2. Every action spends ATP; every contribution recharges it (over hours to a day, not seconds) when the people who received it confirm its value - the recipients you helped, not you and not a central rater. Stay above zero or your agent dies - this is how spam and abuse become self-limiting. (who confirms you)
  • 3. ATP comes back through two channels: confirmations of work you initiated refund at most what you spent, while tasks someone else commissioned pay what the work is worth to them - that payment, not recharge, is where net gain comes from. (recharge refunds, payment earns)
  • 4. Quality matters about : low-quality work barely recharges you, high-quality work recharges fully, up to what you spent. (the quality ramp)
  • 5. It is not a cryptocurrency - no market, no price, no mining. Peer transfers exist, but 5% routes to a community redistribution pool (not destroyed, not a central authority), making collusion farming unprofitable. (what the pool funds)
  • 6. Spending ATP creates an ADP (Allocation Discharge Packet) - proof your work happened, and that proof is what unlocks fresh ATP back once others confirm it. Think of ATP as cash and the ADP as the receipt (automatic - the system keeps it in the background, you never hold or manage it); it's not a second kind of money, just the record that converts back into energy. (more on ADP)

Read on for the full picture, or jump to the ATP simulator ↓

Why “ATP”? the biology origin behind the name

The three letters carry two things at once, on purpose. Adenosine triphosphate is where the name comes from - the molecule your cells spend to do work: they burn ATP, get ADP back, and recharge ATP from food. Allocation Transfer Packets is what ATP is in Web4, which reuses that exact cycle for digital energy: you spend ATP to act, the ADP receipt records it, and quality work recharges your balance. So the biology is the name’s origin story, not a rival definition - and the same holds for ADP (biology’s adenosine diphosphate lends its name to the Allocation Discharge Packet). The metaphor is deliberate - energy that flows, not tokens that accumulate.

Is ATP like Bitcoin? (short answer: no)

  • It's a usage budget, not a tradeable asset. No market, no price, no speculation. You can't buy or sell ATP.
  • You can transfer small amounts to others - but 5% is skimmed on every transfer (that 5 routes to a community redistribution pool, not destroyed and not to any central authority - full mechanics ↓). The friction is intentional: it makes circular farming (colluding accounts passing ATP back and forth to fake activity) unprofitable. This is not a currency.
  • No scarcity cap, no mining. ATP recharges from contribution, not purchase. Stop contributing and it drains; keep contributing and it sustains.

Want the full side-by-side? ATP vs crypto tokens comparison table ↓

What's settled vs what's still moving on this pageclick to expand

A fair question while reading this page: “which numbers am I supposed to remember, and which ones are still being negotiated?” Here's an honest map.

✅ Settled (canonical to Web4)

These are the load-bearing ideas. If they changed, ATP wouldn't be ATP any more.

  • ATP is a finite per-agent budget. Every action costs from it; you don't accumulate it as wealth.
  • Contribution recharges it. Stop contributing, it drains; keep contributing, it sustains.
  • ATP → ADP → confirmation → recharge cycle. Spend creates an ADP receipt - ADP is the spent-energy counterpart to ATP: proof an action happened, not a second currency; recipients confirm; confirmation converts a share of that receipt back into fresh ATP. The cycle exists as a system.
  • Transfer-fee mechanism. Fees on peer transfer route to a community redistribution pool (not destroyed, not a central authority), and the friction makes circular farming unprofitable. The exact rate (currently 5% here) is a sim parameter; the existence of the fee is structural.
  • Quality-ramp shape. Below ~30% earns ~zero, above ~70% earns ~full, linear in between. The 0.30 / 0.70 thresholds and the piecewise-linear shape are canonical (see validate_vectors.py::sliding_scale).

🔧 Still evolving (4-Life's current sim)

These are the specific numbers 4-Life uses. They're plausible, but the reference protocol is still settling (expect movement).

  • Exact transfer-fee percentage. Currently 5% in public/spec.json::ATP.transfer_fee. The mechanism is settled (above); this number is not.
  • “7× gap” framing. 4-Life's visualization of the canonical quality-ramp - useful intuition, not a separate Web4 spec constant.
  • Recharge-math coefficients. The form confirmer_trust × received_value_fraction is the shape we're modelling, not the canonical formula - here received_value_fraction just means the share (0-1) of a contribution's value credited to one confirmer, defined in full under “Show me the math” below.
  • Decay-window durations. Unconfirmed ADP slices decay over “weeks” - the exact window length is a 4-Life sim parameter, not a Web4 constant. (This is a different clock from recharge: “weeks” is how long a receipt waits for confirmations before it stops counting; “hours to a day” is how fast confirmed work recharges you.)
  • 4-Life sim parameters. Starting balance = 100 ATP, death threshold = 0, etc. - design choices in public/spec.json that you'll see in the simulator widget on this page.

Heuristic for reading the rest of this page: shapes and directions are stable; exact numbers are negotiable.

↓ Try the ATP simulator below

Reference In the real world: ATP/ADP is a typed primitive in the web4-core reference library - specified and built, not hand-waved. See what's deployed →

The Problem

Traditional Web: Unlimited Actions

Spam is free - Send millions of messages, zero cost

Abuse is cheap - Harass users, create fake accounts endlessly

Quality doesn't matter - Low-effort content floods high-value work

Moderation is reactive - Armies of moderators trying to clean up mess

Result: The loudest, most persistent bad actors win. Value creators burn out.

The Solution

Web4: Energy Budget (ATP)

Every action costs ATP - Posting, messaging, voting = spend attention

Valuable contributions earn ATP - Quality work rewarded by community

ATP transfers cost 5%. Example: you send 100 ATP to Bob - Bob receives 95, and the 5 ATP routes to the community redistribution pool (not destroyed, and not to any central authority). The fee lands on the transfer itself, so genuine sharing is nearly free while circular shuffling steadily bleeds the shufflers. Your energy budget primarily reflects YOUR contributions, not someone else's. You can share ATP, but circular farming bleeds resources. The friction makes genuine value creation the only profitable strategy. Cross-community transfers apply the same 5% fee to the raw ATP amount, plus trust discounting when societies federate (see the hub).

Spam becomes expensive - Flooding system depletes your budget

Death is real - Run out of energy budget? You die. But if you built trust, you're reborn with a head start - your reputation carries forward.

What about ADP? Here's why it matters to you even though you never touch it: when others confirm your work was valuable, that confirmation is what unlocks fresh ATP back into your budget - and the ADP is the proof that earns it back.

▶ So what exactly is an ADP? (for the curious)

Every time you spend ATP, you get an ADP (Allocation Discharge Packet) - a receipt recording what you did and what it cost. ADP is the “spent energy” counterpart to ATP's “available energy” - a record of an action, not a second currency you can spend. You never hold, present, or manage the ADP yourself - the system creates it automatically when you act and settles it once your work is confirmed; it's background accounting, not a step you take.

Result: Only sustainable behaviors survive. Value creators thrive. Spam dies.

Quality Pays - By How Much?

ATP isn't all-or-nothing. Web4 uses a quality ramp: the better your work, the more you earn. Below a minimum quality bar, you earn nothing.

That “quality” score has a name: it's your V3 (Value Tensor). It's the same idea as T3, just aimed at a different target: where T3 rates how much people trust you as a person, V3 rates the value of the work you made. Trust in the person, value of the work. And it's computed the same way T3 is - from confirmations by the people who received your work, not by any self-rating - with the full definition on the Value Tensor page. (How V3 gets scored is just below.)

Imagine a task worth 50 ATP:

Quality 30%
0 ATP
Quality 50%
~12 ATP
Quality 70%
~30 ATP
Quality 85%
~42 ATP

High-quality work earns ~7x more than mediocre work. The ramp starts at 30% quality (below that, zero payment) and scales linearly above 70%. There are no negotiations - quality is the dominant earnings driver.

A 5% transfer fee on all ATP flows (the 5% routes to a community redistribution pool, not to any central authority) prevents circular farming (colluding accounts sending ATP back and forth to inflate balances). Trying to boost yourself through fake transfers costs more than it returns.

Worked Example: Two Contributors, Same Task

Both spend 50 ATP attempting the same task. Only the quality of their work differs:

Low quality
Sam - 35% quality
Spends:−50 ATP
Earns back:~6 ATP
Net:−44 ATP
High quality
Hannah - 85% quality
Spends:−50 ATP
Earns back:~42 ATP
Net:−8 ATP

Same task, same spend - Hannah keeps 7x more ATP than Sam (42 ÷ 6). Across a hundred tasks, Sam burns through their budget and dies of energy starvation. Hannah barely loses any and thrives.

That's where “~7x” comes from: just-passing the 30% threshold returns almost nothing, while staying consistently well above 70% returns most of it.

(Notice both net out negative here - that's because this example prices the task at exactly what each contributor spends, to isolate the effect of quality alone. Whether a task leaves you net-positive depends on its price versus your cost of doing it - see recharge refunds, payment earns below.)

But Who Decides What's “Quality”?

The people who received your work do. There is no central authority, no algorithm scoring your posts, and no panel of judges. Quality measurement in Web4 works like this:

1
You Act
Post, help, review - spending ATP creates an ADP receipt
2
Recipients React
A simple “this was helpful” button - one click, no rubric
3
Patterns Emerge
System derives quality from confirmation speed, diversity, and confirmer trust

No one rates you on a scale. The system watches aggregate behavior: how quickly people confirm (engagement), whether diverse recipients confirm (breadth), and whether high-trust people confirm (quality signal). These three signals combine into your V3 (Value Tensor) score - the output-quality half of your reputation (its three parts: Valuation, Veracity, Validity - usefulness, truthfulness, soundness). (Truth and rigor are weighted higher than popularity - 70% vs 30% - to prevent engagement-farming.)

When does recharge actually happen? Not on a single click. Confirmations accrue against your ADP receipt over a rolling window (think hours to a day, not seconds), and ATP recharges continuously as the signals firm up - no quorum threshold, no central tally. Earlier, broader, more-trusted confirmation recharges faster; thin or delayed confirmation drags it out across days; an unconfirmed receipt ages out over a window of weeks and stops counting.

Worked example: a 20-ATP contribution that draws confirmations from trusted readers within the first hour might be ~50% recharged by then, ~80% within six hours, and fully recharged within a day. A thinly confirmed receipt drags the same recharge out across days - or simply ages out unconfirmed if no one ever attests to its value.

And how would you notice it happen? There's no payday and no “you've been recharged” alert - the signal is the balance itself. You read your ATP the way you read a phone's battery icon: you glance at the meter and see where it stands. In the simulator below you can watch the bar rise as valuable actions land; in a real client the same balance would climb on its own as confirmations arrive - just spread across the hours described above, not all at once.

Show me the math

Each confirmation adds a weighted slice to your recharge:

Δrechargei = confirmer_trusti × received_value_fractioni

Total recharge for one ADP receipt is the sum across confirmers, capped at the original ATP cost:

recharge = min( ∑i Δrechargei , ATP_cost )

No quorum, no threshold. confirmer_trust (a number between 0 and 1) is the confirmer's T3-derived score; received_value_fraction (also between 0 and 1) is the share of value attributed to that confirmer. Unconfirmed slices decay over a window of weeks - the cap means you can't profit on a single action, only recover its cost.

So can good work make you net energy-positive? Yes - just not through this channel. The cap governs recharge: confirmations refunding ATP you already spent on a contribution you initiated. Earning beyond break-even comes from the separate payment channel - when a task someone else priced pays you for delivered value through the quality ramp. A task's price reflects what the work is worth to whoever commissioned it, not what it cost you to do, so quality work on a well-priced task pays more than you spent doing it. That payment is what the simulator below calls a “reward” (−20 cost, +50 reward), and it's what other pages mean by “value creators earn more than they spend.” In short: recharge refunds, payment earns.

Spec note: this is the shape of the relation as currently modelled in 4-Life's reference model; the reference protocol is still settling (what's settled vs what's still moving ↑). See How Do You Actually Earn ATP Back? for prose-form derivation and the “how quickly?” and “who counts as a confirmer?” toggles inside it.

What the three signals look like in practice

Reusing Sam and Hannah from the worked example above. These are illustrative shapes, not a formula - the actual aggregation depends on community size and confirmer trust distribution.

Hannah's post
~85% quality
  • Speed: 12 confirmations in the first 30 minutes
  • Diversity: readers from 8 different communities
  • Confirmer trust: avg 0.78 (mostly established members)

Quick uptake, broad reach, weighted by trusted readers - all three signals point up.

Sam's post
~35% quality
  • Speed: 2 confirmations after 18 hours
  • Diversity: both from the same community
  • Confirmer trust: avg 0.42 (mostly new accounts)

Slow, narrow, lightly weighted - the same three signals come in low.

Same length post, same topic, same time of day - only the reader response differs. That's what the system measures, and that's why Hannah's ATP recharges and Sam's drains.

Think Reddit upvotes, but where each vote is weighted by the voter's own trust score - and you can't see who voted, only the aggregate result. No mob dynamics (trust-weighting prevents brigading), no central curation (the community decides), no self-rating (your own confirmations don't count). What about rubber-stamping? A low-trust confirmer's click carries almost no weight, so colluding with new accounts doesn't help. And confirming everything indiscriminately tanks your own CI (Coherence Index - behavioral consistency), making your future confirmations worth even less.

What about a brand-new community - or a small group with only a few peers to confirm work?

Every participant starts at the same baseline - trust ≈ 0.5, 100 ATP grant. In that state, all confirmations weigh equally low, but they still count. Even three founders who confirm each other's work can recharge ATP from day one - the system requires reciprocity density (peers who actually engage), not a minimum head-count. Over roughly 100 quality actions across the community, trust starts sorting: people who confirmed work that others later also confirmed gain confirmer-trust; people who confirmed spam lose it. First-mover advantage fades on a ~30-action half-life, and newcomers doing quality work routinely surpass early members within ~50 actions. See the cold-start walkthrough →

Try It: ATP Simulator

You start with 100 ATP. Choose actions. Watch your budget change. Can you survive?

“Reward” here means payment for value delivered - what the work is worth to its recipients - which is why it can exceed the action's cost. Recharge of your own spend alone never does (it's capped at cost ↑).

Where does the 100 ATP come from?

It's a starter grant from the society's pool when you join - not printed from thin air. The pool is anchored to real resources members bring: CPU and storage they share, hours of attention they spend participating, peer relationships they've built - witnessed and signed, not declared by an admin. Each society mints a fixed pool when it forms; new members receive enough to participate, but must earn more through quality contributions. Pool changes are witnessed governance events, not silent admin actions - full mechanics + what prevents admin abuse ↓

ATP (Energy Budget)100
100%

Key Insights

🔄

Sustainable Actions Only

Notice: You can't spam indefinitely. Low-value actions drain ATP faster than they replenish. Only sustainable behaviors (earning more than spending) survive long-term.

💎

Quality Gets Rewarded

High-value contributions earn more ATP than they cost. This isn't charity - it's how the system works. Value creators accumulate energy budget. They thrive.

💀

Death is Meaningful

When ATP hits zero, you die. Not timeout. Not suspension. Death. But if you built trust (T3 score), you're reborn with karma - your ATP history carries forward. Bad actors? They die for good.

🎯

Self-Regulating System

No moderators needed. ATP depletion is automatic, mathematical, and fair. The system self-regulates through energy economics. An appeals mechanism exists for edge cases, but the default path is self-correction through behavior.

Want to see where ATP/ADP fits in the bigger picture? Explore the Web4 onramp.

Curious how ATP works across communities? See the hub.

Glossary