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Tokenomics & Governance 🧑‍⚖ī¸ 🌝

prePO is owned and operated by Pregens.

Anyone can become a Pregen by timelocking PPO, the native currency of prePO.

Pregens, Traders and LPs are all rewarded for their participation with PPO.

info

🚧 All information on this page is a work in progress and subject to change 🚧

PPO​

PPO is an ERC20 token with a total supply of 1 billion.

PPO can timelocked to mint Timelocked PPO (PPPO), or used for NFT purchases (game items, vanity items for profile/avatar, rewards boost, merch, etc).

Earning PPO​

Treasury PPO and market fees will be distributed amongst Traders, LPs, and Pregens.

Traders​

  • Get part of all fees reimbursed in PPO*
  • Earn PPO from leaderboard contests
  • Earn a performance cut from Follow Traders (more on Follow Traders soon!)

LPs​

  • Earn PPO based on staked active liquidity as a share of all staked active liquidity across all pools
  • Earn PPO from leaderboard contests
  • Earn a performance cut from Follow LPs (more on Follow LPs soon!)

Pregens​

  • Earn a portion of all market fees as PPO*
  • Governance Mining (more on Governance Mining soon!)
*Fees are converted into PPO prior to distribution.

PPO Fees​

Governance may enact fees for performing various actions within the protocol.

  • Minting & Redeeming preCT
  • Minting & Redeeming Long+Short Tokens
  • Opening & Closing Trades

Fees are be distributed between

  • The Treasury (as the base token e.g. DAI)
  • Pregens (as PPO)
  • Traders (as PPO)*
  • LPs (as PPO)*
*Trading fees only. Fees are converted into PPO prior to distribution.

Timelocked PPO (PPPO)​

PPO may be timelocked to receive PPPO.

PPPO are non-fungible ERC721 tokens.

PPPO is transferable only to/from EOA addresses and whitelisted smart contracts (e.g. for use as loan collateral) to prevent timelock bypassing.

Utility​

PPPO owners may participate in timelock-weighted voting of prePO governance proposals.

PPPO owners receive timelock-weighted distributions from the treasury, part of which are from market fees.

Timelock​

A timelock period must be specified when minting PPPO.

On expiry of the timelock, the PPPO token may be burned and locked PPO reclaimed.

The minimum timelock period is 1 month, and the maximum timelock period is 4 years.

Governance may adjust the minimum or maximum timelock periods. If they are changed, there will be no change to existing timelocks.

Early unlock​

PPPO may be unlocked early by paying a penalty to the treasury.

The penalty is determined by an external contract (swappable by governance), to facilitate new calculation methods (e.g. different time discount factor).

Example penalty: single time discount​

PPO timelocked for 4 years with a discount rate of 20%: 1−11.24=52%Penalty1 - \frac{1}{1.2^4} = 52\% Penalty

PPO timelocked for 1 year with a discount rate of 20%: 1−11.21=17%Penalty1 - \frac{1}{1.2^1} = 17\% Penalty

Voting​

At the point of timelocking, an EOA address is specified as the voting owner of the NFT; this cannot be changed. The EOA requirement prevents trustless timelock bypassing. Voting power is only activated if the current owner matches the voting owner.

Initially, votingPower=remainingTimelock∗ppoAmountLockedvotingPower = remainingTimelock * ppoAmountLocked. Non-linear calculation methods may be implemented by governance.

PPPO owners may delegate voting power to another PPPO owner.

Governance Mining approaches will be explored, including rewards for voting delegates.