Tokenomics
The Perped governance token ($PRPD) is an ERC-20 with a fixed supply of 100 million tokens, that will be available on Ethereum mainnet after its token generation event, which is expected to happen in 2023. The token will be used to:
Govern the Perped decentralized autonomous organization (DAO) by staking PRPD tokens in governance contracts, which will require a minimum period during which the tokens cannot be withdrawn
Accrue revenue from the protocol along with token rewards from a portion of the fixed token supply
The latter option will occur non-custodially and periodically on the respective L2s where the protocol is deployed, and the initial split that we have decided to go for is detailed below:
70% of the fees will go to the LPs in the L2-based liquidity vaults that underpin the protocol on the chain.
15% of the fees will be added to the protocol-owned (and therefore governance-controlled) liquidity on the chain, and the fees that are accrued from this LP will be used to buyback and burn PRPD tokens.
15% of the fees will go to the teams that will be employed by the Perped DAO to run its operations and develop the protocol.
The above initial split can be voted upon to be changed by the Perped DAO as detailed in the section about the same. Accordingly, if it is decided later to keep all of the liquidity on Ethereum mainnet with the Perped DAO or to have a portion of the revenue redirected directly towards protocol governors, these are changes that can be done later.
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