Tokenomics
The Pendulum/Amplitude tokenomics in a nutshell
PEN will be the native token on Pendulum (Polkadot parachain). AMPE is the native token of Amplitude (Kusama parachain).
Pendulum Tokenomics Overview
PEN will be the native token of Pendulum. PEN utilities include powering transactions as the gas token on Pendulum as well as governance and staking.
Tokenomics Overview
Ticker: PEN
Relay Chain: Polkadot
Supply Structure: Inflationary, through staking and vault operator rewards
Supply at Genesis: 160,000,000
Max Supply: 200,000,000
Initial Circulating Supply: 10,000,000
Total Supply: see here
Circulating Supply: see here
Consensus: Limited Delegator Proof of Stake
Token Usage: Gas,Staking and Governance
Distribution
The distribution maintains a balance between Pendulum’s early supporters and the Pendulum community with an even 50/50 split.
Community Distribution
The chart below shows the percentage that each community bucket takes up from the community bucket that takes up 50% of the total PEN total allocation. The community distribution includes staking rewards for directly staking PEN (28%) as well as staking rewards related to Spacewalk bridge (12%). The Crowdloan #35 was won by Pendulum
Backers Distribution
The below chart shows the distribution of tokens to Pendulum’s early backers that have supported the building of Pendulum and Amplitude for over 1 year now.
Note: The percentages in the Community and Backers charts should be halved to find the percentage of the overall tokenomics. For example, Staking Rewards is 14% of the overall tokenomics and 28% of the Community bucket.
Vesting Schedule Below is the vesting schedule for all community and backer tokens. Most of the tokens include a vesting schedule that unlocks linearly over 2 to 3 years to ensure all participants are incentivized to work towards Pendulum’s long-term growth.
| Allocation | Distribution (%) | TGE Unlock (%) | Vesting (months) | Cliff (months) |
|---|---|---|---|---|
Private Presale | 20 | 2.0 | 24 | - |
Polkadot Parachain Crowdloan | 3 | 0.3 | 22 | - |
Strategic Presale | 10 | 10 | 24 | - |
Exchange Listing | - | - | - | - |
Treasury | 13 | 3.9 | 60 | - |
Marketing | 5 | 0.5 | 36 | - |
Rewards | 20 | Perpetual | - | |
Crowdloan Reserve | 5 | 0 | 22 | - |
Liquidity | 4 | 0 | 24 | - |
Team/Advisors | 20 | 0 | 18-36 | 6-12 |
Definitions:
Advisors: Allocation for backers with specific expertise supporting Pendulum with their advisory services
Team: Allocation for current and future team
Private Sale: Allocated tokens for the private sale investors
Strategic Sale: Allocated tokens for the strategic sale investors
Crowdloan: Allocation for rewarding participants who help us in winning the parachain auction. Remaining funds from this will be added to the treasury.
Crowdloan Reserve: Allocated to fund future parachain actions
Liquidity incentives: Allocated for providing initial liquidity on exchanges and liquidity provisioning rewards
Treasury: Allocated to the Pendulum network treasury required to fund product development and enhancements
Marketing: Allocated for marketing campaigns, airdrops, partnerships and events
Staking rewards: Allocated for consensus staking related rewards
Spacewalk rewards: Allocated for rewards related to Spacewalk
AMPE Tokenomics Overview
Ticker: AMPE
Relay Chain: Kusama
Supply Structure: Fixed
Max Supply: 200,000,000
Total Supply: see here
Circulating Supply: see here
Initial Circulating Supply: 11,555,556
Distribution
In order to ensure Amplitude is a community-first project, the Pendulum team decided to take no allocation of AMPE tokens for themselves or advisors and held no token private sales.
The distribution is reflective of the intended nature of the project that truly gives Amplitude to the community.
Protocol & Ecosystem Breakdown:
AMPE Token Utility
Amplitude will be the canary network of its sister blockchain, Pendulum. It will act as a testing ground for applications and network parameters for Pendulum, but with real financial consequences.
AMPE token utilities will initially include transaction fees, staking and on-chain governance. Transaction fees will be an integral part of using the network and will be applicable when making any transactions on the protocol and will be paid using AMPE. The fee will be split between the community treasury, rewards and others.
On-chain governance will follow a quadratic voting mechanism to ensure more votes for smaller holders and to disincentivize a single holder casting multiple votes on a single proposal. Proposals in the following categories can be voted on by the community of token holders:
1. Asset Usage — Proposals to use the Asset, such as listing and delisting the token on DEXes and CEXes.
2. Reward Distributions — The mechanism and amount of rewards distributed to different players of the network.
3. Parameter Modifications — Technical upgrades, smart contract configuration changes, transaction fees, etc.
4. Community Proposals — Other suggestions / recommendations from the community.
The objective of these tokenomics is to set up a fertile ground for a community-driven chain where experimentation can blossom. For more details on the Amplitude crowdloan participation and bonuses please visit our FAQs page.
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