How do the ASI and stakedASI tokens actually work together?

The new whitepaper mentions ASI, stakedASI, and shard-level reserves. Can someone break down what that setup looks like in practice?

Sure. Here’s the basic flow:
Each shard earns fees from its activity. Those fees get split up into several buckets:

  • Part is burned to reduce overall supply.

  • Part goes to validators and the treasury.

  • And part is used to buy back stakedASI and grow a local reserve.

That reserve then pays out small yields to the shard’s stakers — like a built-in dividend system, but entirely on-chain.
So productive shards grow stronger and reward their users, while unproductive ones fade naturally. The whole setup self-balances without a central authority deciding who gets what.