Tokenomics
This document aims to provide a detailed description of the utility and tokenomics of $PIX token as a utility token within the LayerPixel / PixelSwap ecosystem.
This document may be updated without notice until the final TGE. Any information on this document is for reference only. Nothing on this website constitutes an offer to buy or sell any products or services, including but not limited to securities, financial products, investment fund shares, or other investments or investment, legal, tax, or accounting advice. This document may contain statements that constitute forward-looking statements. While we believe that the espectations reflected in these statements are reasonable, forward-looking statements inherently involve risks and uncertainties (both general and specific), and there is a risk that the outcomes described or implied in the predictions, forecasts, conjectures, and forward-looking statements may not be realized.
LayerPixel is a DeFi component built on the TON (The Open Network) blockchain, aiming to provide a better DeFi interaction method for Telegram Mini App developers. PixleSwap is a modular DEX constructed based on LayerPixel, which can offer various trading curves including constant curve, weighted pool and LBP, while also supporting atomic swap. This document aims to provide a detailed description of the utility and tokenomics of $PIX token as a utility token within the LayerPixel / PixelSwap ecosystem.
Disclaimer: $PIX token is not yet released. This document is confidential and is not intended to provide any financial advice or opinions to the public. The $PIX token is not for sale to users, itβs a reward for using PixelSwap / LayerPixel products. The content of this document may be subject to change without prior notice.
$PIX token
The $PIX token is the governance token of the LayerPixel / PixelSwap ecosystem. Users can obtain tokens by using LayerPixel / PixelSwap ecosystem products, and further participate in the ecosystem. The $PIX token design considered several aspects, including how to better incentivize users, how to better maintain protocol security and most importantly, how to ensure the sustainable development of the protocol.
$PIX token should be distributed to people that interface with the ecosystem in some way, committed to the future development of the ecosystem, and the whole mechanism should drive the ecosystem and community to keep growing.
How do $PIX token captures value?
The $PIX token is a utility token that serves several protocol needs:
to ensure a permissionless fashion of interaction with the protocols;
to secure funds for further ecosystem development;
to capture the value generated from the protocol;
to incentivize participation in potential governance of specific network functionalities;
to stake for the protocol security.
The $PIX token enables the open and permissionless system. Following protocol rules and contributing resources facilitates consensus between participants. The network has a low barrier to entry and encourages innovation. Moreover, the architecture of the network guarantees that no one will be excluded by the will of a single party. Please note, that the use of PixelSwap and LayerPixel does not require a user to hold $PIX token. The token provides additional incentives to utilise the service. All network statistics are open to the public.
Token distribution
The total supply of $PIX is 500,000,000, with a maximum vesting period of four years for distribution. During this time, the distribution mechanism will be as follows:
20% for investors and early supporters: 5% will be available at TGE, followed by a 4-month cliff and 18 months of vesting.
3% for the initial decentralized token offering: This will have a 3-month vesting period.
15% for the core team and future employees: This allocation includes a 1-year cliff and 2 years of vesting.
2% for advisors: This will have a 6-month cliff and 1.5 years of vesting.
50% for the community: This allocation will vest over 4 years.
10% for liquidity.
The initial circulating supply of $PIX tokens (17%) will be allocated for network security, maintenance of functionality, marketing, and community development.
Guideline for using community token
The use of some Community tokens will be strictly limited to purposes related to the LayerPixel / PixelSwap community. This may include:
liquidity mining rewards, swapping rewards or transaction fee rewards (using $PIX tokens as incentives for adopting PixelSwap)
ecological grants (using $PIX tokens to aid in the development and wider adoption of the LayerPixel ecosystem)
Due to the necessity of early growth, a total of 3.5% of community tokens will be used for growth activities during the TGE and the first month. Of this, 0.5% will be airdropped to paying users among millions of game users in the ecosystem, 1% will be allocated for airdrops and collaborations with other Web 3 ecosystem projects and KOLs, while 2% is set aside for retrospective airdrops and early incentives for trading and providing liquidity in PixelSwap.
Due to the unpredictability of the market, the allocation method and amount of $PIX tokens used for liquidity mining rewards, swapping rewards, and transaction fees rewards may change. As community tokens are released, unused $PIX tokens will belong to the protocol treasure. Subsequent distributions will be determined by protocol voting.
Protocol treasure & protocol fees
Naturally, LayerPixel / PixelSwap will generate protocol fees (protocol income), 50% of which will go to the core team for the continuous development of the protocol; The other 50% of the protocol income will belong to Protocol Treasure. Protocol Treasure is a treasury governed by DAO, with funds composed of protocol income, donations and $PIX tokens. The governance of the protocol will decide how these funds are used.
Given the unpredictability of the market, this document is not intended to promise any potential treasure distribution methods. However, we suggest introducing a lock-up and time-weighted approach for distributing these profits to better incentivize long-term protocol supporters.
Governance proposal
$PIX will be utilised for protocol governance, with governance being conducted via PIP (PixelSwap Improvement Proposal). Users who hold $PIX tokens or those suggested in this document to hold locked $PIX tokens can participate in the governance. The aspects of governance may include:
fee factors of the protocol
utilisation of Protocol Treasure's funds
usage of community tokens, including liquidity incentive
distribution of ecological grants
Conclusion
The $PIX token is a crucial component of the LayerPixel / PixelSwap product and ecosystem. The introduction of the $PIX token will better support the continuous development of the PixelSwap ecosystem, incentivizing more users and community members to participate in the product development and iteration of LayerPixel / PixelSwap.
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