MINING & TOKEN DISCLOSURE

Last updated: April 15, 2026

This disclosure provides transparency about the TESS token, mining system, and blockchain integration in TESSERA. Read this carefully before participating in mining or token-related features.

1. TESS TOKEN

1.1 Token Details

• Name: TESS (Tessera Token)
• Standard: ERC-20
• Blockchain: Polygon (MATIC)
• Total Supply: 100,000,000 TESS (fixed, no minting after deployment)

1.2 Token Distribution

• 40% - Player mining rewards (40,000,000 TESS)
• 20% - Development and team (2-year vesting)
• 15% - Liquidity pool (DEX listing)
• 10% - Marketing and partnerships
• 10% - Future game ecosystem expansion
• 5% - Advisors and early supporters

1.3 Token Nature

TESS is a utility token intended for use within the TESSERA ecosystem. TESS is NOT a security, investment contract, or financial instrument. We make no guarantees about the future value, price, or liquidity of TESS tokens. The value of TESS may fluctuate significantly or become zero. Do not purchase or mine TESS with the expectation of profit.

2. MINING MECHANICS

2.1 How Mining Works

• Mining is entirely server-side. No computation happens on your device.
• To activate mining for 24 hours, you must play at least 3 hours in a day.
• Once activated, mining runs on our servers even when the app is closed.
• You must re-activate daily. No activation = no mining that day.
• Mining does not drain your device battery or use your device resources.

2.2 Mining Rate

Mining rate is calculated as:

rate = base_rate * level_multiplier * referral_bonus

• Base rate: 1.0 TESS per hour
• Level multiplier: Your level divided by 1000 (Level 3000 = 3.0x)
• Referral bonus: +1% per 10 confirmed referrals (maximum +20%)

Mining rates, formulas, and requirements may change at our discretion with reasonable notice to users.

3. WITHDRAWALS

3.1 Requirements

• Minimum balance: 100 TESS
• Account age: 30+ days
• KYC verification completed (government ID, name, country)
• Withdrawal fee: 5 TESS per withdrawal
• Daily limit: 1,000 TESS per day
• Cooldown: 24 hours between withdrawals

3.2 Withdrawal Process

Tokens are transferred from our custodial system to your external Polygon wallet address. You must provide a valid Polygon-compatible wallet address. Transactions are subject to Polygon network confirmation times and gas fees (paid by us). Withdrawals may be delayed for security review.

4. NFTs

• Standard: ERC-721 on Polygon
• NFT tile skins are earned through gameplay, events, and achievements
• NFTs can be viewed in-app and traded on compatible marketplaces (e.g., OpenSea)
• NFT rarity tiers: Common, Rare, Epic, Legendary, Mythic
• We do not guarantee the value, liquidity, or future utility of NFTs

5. RISKS

• Market risk: Token value may fluctuate or become worthless
• Technical risk: Smart contract bugs, blockchain network issues, or bridge failures
• Regulatory risk: Changes in regulations may affect token availability or legality
• Liquidity risk: There may not be sufficient buyers for your tokens or NFTs
• Custodial risk: In-app tokens are held custodially by Kelthos Inc.
• Operational risk: Mining rates, withdrawal limits, or features may change

6. SMART CONTRACTS

Smart contracts will be audited by a third-party security firm before mainnet deployment. Audit reports will be published publicly. Despite audits, smart contracts may contain undiscovered vulnerabilities. All contracts include an emergency pause mechanism controlled by a 3-of-5 multi-signature wallet.

7. LISTING TIMELINE

• Months 1-6: Mining begins, tokens accumulate in-app, no external trading
• Months 7-9: Internal marketplace (trade TESS for in-game items)
• Months 10-11: Token audit and smart contract finalization
• Month 12: DEX listing on QuickSwap (Polygon), withdrawals enabled
• Post-listing: Applications to CoinGecko, CoinMarketCap, and centralized exchanges

This timeline is an estimate and may change based on technical, regulatory, or market conditions.

8. COMPLIANCE

Kelthos Inc. is committed to operating within applicable laws and regulations. We implement KYC/AML procedures for token withdrawals, comply with sanctions requirements, and cooperate with regulatory authorities as required.

9. CONTACT