The third in our series of articles explores the tokenomics behind Panjea. You’ll probably want to get clued up on the previous articles if this is your starting point… Where we go through the basic content systems and the curation link structures that allow you to engage with the platform.
Today, we’re looking at the basic tokenomics. The way we create value in the system and how we differ from some of the competitiors out there. Compensating creators fairly and equitably has been one of the key features of Panjea from day one and we’ve designed the tokenomics to facilitate this system.
Also, it’s worth noting that the genesis of our tokenomics come from our historical experiences with blockchain based social platforms. We’ve had the chance to see where they’ve gone wrong and failed — allowing us to build and correct past mistakes. Panjea’s burning and emission system is key to delivering on the promise to our users and put the value of our supporters, early adopters and community first.
Naturally, the Panjea tokenomics are not that simple. We’ve used some very basic pictures and analogies to break down this system into layman’s terms — we wanted the article to be accessible for everyone at every level of the blockchain game…
Coming from the Other Direction…
Panjea is different from other blockchain based social hubs and content platforms. One of our founders, Kieron Bain, was obsessed with creating a media site that generated money for the founders. He looked towards how the original internet had been structured from day one and tried to engineer economic systems that rewarded creators.
In fact, it was only when Kieron was working on crypto projects in 2017 that he was encouraged to look more closely at the blockchain. After delving into some of the technological capacities of different coins, he began to realise that his existing model would be improved and enhanced by tokenisation.
Whilst other blockchain platforms take existing free models of the internet such as Reddit (probably the most popular) and Instagram — Panjea exists as a different kind of content model to which we applied tokenisation.
Original Pirate Material…
Kieron’s initial blockchain model was vastly expanded, enhanced and realised by Panjea’s crypto expert Lee Kerr when the company formally launched in 2021. One of the first moves he made was to generate the overall model that uses a burning and emitting cycle to ensure that the value of the network is contained in the PANJ token. In effect making all creators shareholders in the platform.
If you were one of the voices and souls who built Panjea…
Then you have the option to bag hold and share in the increased value.
Countdown to Zero…
Lee was also the guiding force in our selection of the Aleph Zero chain as our home. Not only did he cite the excellent technological features available including the transaction per second and the build in smart contract facilities — but also his own experiences with the community, leaders and support.
As a result, Lee’s tokenomics modelling allowed Kieron’s initial vision to come to life on the chain.
And this is how it works…
Top of the Cap…
Panjea has a set market cap of 100 million PANJ. Whilst this is a theoretical limit (you’ll find out later why we can never reach this amount) the thinking behind this is that we do not want to endlessly inflate our tokens. One of the problems we’ve always seen with fiat currencies is that your wealth gets decreased in front of your eyes. By having a fixed coin supply — we can ensure that all the value of Panjea goes into the tokens.
Ask the Oracle…
To ensure that the Panjea pricing structure is fair we use an oracle that converts PANJ into USD. The cost of activities on our network, such as subscribing and posting will always be set in USD — (although the community can vote to change these values) ensuring that access to the network is not throttled by the value of PANJ increasing.
This price structure is set within an oracle that controls the cost of different activities on the network. This allows us to make sure that the PANJ you pay to interact with the network is always linked to the price of USD via our Oracle.
Over time we plan to allow users to post extended content (such as long form audio and video) and whilst certain types of short form content can be managed with standardised pricing — costs for larger content may need to be increased to account for additional storage.
Burn Baby Burn…
What happens to all the PANJ that are collected for payments on the network? These are burned — decreasing the overall supply of available tokens. This removal from circulation has the effect of driving the value of the remaining PANJ tokens even higher. As the number of users increases, so will the number of PANJ tokens being burned.
Sometimes this mechanic is hard to visualise. In many of our first calls Lee would use a simple analogy: Imagine that PANJ is like gold. There is a finite amount of gold in the world. If you destroyed some of the gold in the world, the remaining supply would increase in value (as demand is the same and supply is less). Think about what would happen if the demand for gold went up higher… And at the same time a larger amount of gold was removed from circulation…
This would have the effect of driving the price of gold up even higher. By using this mechanic, we ensure that the value of the network, community, content and our model is driven into PANJ.
I Must Emit…
Then on the other side of the burning side, we emit coins to reward our creators. We have set aside 40 million tokens to be released over 4 years to slowly allow the coin supply to expand. These are vested over 4 years — 16m tokens in year one, 12m tokens in year two, 8m tokens in year three and 4m tokens in year four and all subsequent years.
This is how we reward our early adopters; the first people to get on Panjea and use the system will be heavily incentivised with daily emissions (40K tokens per day in the first year), encouraging them to get on the network and create the best content to get their share of these rewards.
As the network grows the value also grows. As we have seen from defi systems emitting too many tokens — the value can’t sustain the growth. It’s a balancing act to ensure the value stays in the ecosystem. Once the value has been achieved,
Using our gold analogy, this is like we are producing our own gold to reward our creators, curators and community. As the demand for gold increases year on year, with larger numbers of people wanting this commodity — then we slowly emit a smaller supply, which in pushes up the price of the remaining quantities.
Liquidity Pools and De-Fi
Coin swaps and liquidity are achieved through our incentivised liquidity pools. Want to know more? Keep your eyes peeled for our article tomorrow.
Panjea Needs You
Panjea is still in its early stages of development. We’re currently holding interviews for our first tranche of creators — people who are edgy, innovative and want to do something different.
We want those who are inspired by the vision, ready for the difference and hungry for an opportunity to open the web up again to the thinkers, dreamers and doers. We’re setting up an off-site community who are ready for the first day of live action… Contact us through our social channels or emails on the website.
If you share this vision of the internet and this message is resonating with you — then perhaps Panjea might be the right place for you to call home. Find out more at our website https://panjea.io/
