Pion Network & $PION Explainer

A Deep Dive into Pion’s Dynamics

Robert Wallace

Published in

Muon

6 min readSep 28, 2023

This document presents the details about Pion and Muon Networks and their corresponding tokens: $PION and $MUON.

Why do we need Pion Network? / Will Pion still exist after Muon launched?

The Pion network represented by its native token $PION

The inaugural mainnet will be launched under the aegis of the Muon Protocol and serves as a "canary" network.

From a financial perspective, it encapsulates the entire economic value of the ecosystem until the launch of Muon.

Technologically, the Pion Network provides a regulated environment wherein all features are initially tested and implemented. It is important to note that these two networks, Pion and Muon, will coexist, each with distinct configurations and implementations.

Exploring the security settings and parameter differences between Pion and Muon Networks

Pion will undergo more frequent updates and feature upgrades in relatively shorter intervals. Due to their immediate need for these novel features, specific applications may exclusively operate on Pion. Conversely, other applications might necessitate specific security parameters or aim to cater to a particular node demographic, leading them to prefer Muon, Pion, or even a combination of both.

Deploying an app on both networks could achieve redundancy cross-compatibility of newly tested features via Pion or utilize tried-and-tested features via Muon. The overarching objective of both Pion and Muon is to proffer unparalleled customization and a broad array of application settings, an unattainable ambition with a singular network.

This dual-network structure facilitates early access to features and ensures their practical application in a genuine environment. Furthermore, for applications that prioritize prolonged testing of new features prior to their network deployment, Muon emerges as the ideal choice.

As we move forward, we anticipate a burgeoning diversity in implementations driven by visionary developers leveraging this dual-network paradigm.

Consequently, both networks will continue to cater to unique use cases long after their respective launches.

What are the differences in parameters between Pion and Muon?

See the following table for the differences:

As Pion and Muon are still actively developed these figures can change, but they should be indicative of what the basic differences between Pion and Muon are.

What does the Launch of $PION Mean for $MUON Presale Participants?

Implications of the $PION Launch/Node-drop for $MUON presalers:

1) Pion Node-drop:

All participants of the $MUON presale – whether through DEUS, the $MUON presale, or the private sale – will receive an airdrop of $PION in the form of a non-fungible token (NFT) termed "bonded PION - bonPION."

2) Transfer Restrictions:

Initially, the bonPION NFT will be non-transferable for 6 to 12 months, contingent upon the implementation timeline and network stability. This mirrors the lock observed in ETH 2.0 deposits, rendering the bonPION NFTs both locked and non-transferable at launch.

However, the creation of derivatives akin to stETH might be feasible.

3) Post-Restriction Utility:

Once the transfer restrictions (after 6-12 months) are lifted, holders can exchange NFTs amongst themselves or list them on public marketplaces such as OpenSea.

4) Primary Utility of bonPION:

The core function of the bonPION NFT is to serve as a stake for node operation. Each bonPION NFT encapsulates a specific $PION amount, denoting its "Node Power." This node power quantifies the influence a node wields within the network, which in turn dictates the rewards it garners.

5) Node-Drop for $MUON Participants:

In essence, those who participated in the $MUON presale or private sale will receive a node-drop of bonPION, facilitating node operations. The magnitude of this node-drop is directly proportional to the volume of $MUON purchased.

Specifically, each $MUON holder will be allocated 1 $PION for every 20 cents of their investment adjusted for network share (Token allocations are also adjusted for network influence, meaning that participants with more significant holdings may be subjected to a modified airdrop formula.)
For more clarification, see the comment:

Amount of received $PION Tokens a user is entitled to under the bonPION Aidrop shall be determined by the MUON Team in relation to your contributions and previous purchase of $MUON Tokens made via Pre-sale, SAFT, or through participation in the Alice Test Program. The quantity of $PION Tokens allocated to a user is based on the price they paid during the initial $MUON Tokens purchase in the MUON Token Sale, for which MUON Labs accepted payment under the SAFT or Pre-sale terms (herein referred to as the “Received Amount”). Additionally, allocations may be influenced by your participation in the Alice Test Program, as detailed in the Reward Plan available at [https://medium.com/muon/alice-muons-test-network-93cec67394df]. Token allocations are also adjusted for network influence, meaning that participants with more significant holdings may be subjected to a modified airdrop formula. This distribution strategy aims to ensure the PION Network’s stability and security by appropriately balancing token distribution.The projected distribution is slated for the period from October 14th to 25th, 2023.
please read more in the Terms of Aquisiton https://docs.muon.net/muon-network/terms-of-aquisition

6) Illustrative Example:

Consider an individual who procured $MUON valued at $1,000 during the presale. This participant will be granted a bonPION NFT, which securely houses 5,000 $PION. While this NFT remains non-transferable during its initial phase, it can be employed to operate a Pion node backed by a 5,000 $PION stake.

Depending on the cumulative stakes of other nodes, this user will earn staking rewards in the guise of PION for every block.

User A 5,000 $PION (node power)
All users have combined 50,000 $PION (node power) staked
User A receives 5,000 / 50,000 = 10% of 3,000,000 $PION = 300,000 $PION per month claimable through the node dashboard, per block.

This mechanism resonates with the staking protocols prevalent in DeFi. The accrued $PION rewards can be effortlessly claimed, traded, or reinvested to augment node power.

Implications of the $PION Launch/Node-drop for ALICE Node Operators:

For those who have operated ALICE/V2 nodes and fulfilled the requisite conditions, including the uniqueness verification, here's what you can anticipate with the Pion launch:

Upon the network's launch, eligible ALICE node operators will be granted a bonPION allocation sufficient to operate a Tier 1 node. This allocation is valued at approximately $500 (for full 100% participation in phase 1, and an additional 20% per month after phase 1).

$PION Tokenomics Overview

1. Total Supply of $PION: The initial supply of $PION during the bootstrapping phase is capped at 36,000,000 $PION. Subsequent adjustments to emissions post-bootstrapping will be determined by the Pion DAO & FED elect.

2. Emission Rates:

Bootstrapping Phase:
Annual Emission: 36,000,000 tokens
Monthly Emission: 3,000,000 tokens
Weekly Emission: 700,000 tokens
Post-Bootstrapping: The emission and distribution of $PION will be under the purview of a FED elected by the DAO.

3. Emission Distribution:

Months 1 - 4:
TSS (Tiers 1-4): 67% of 3,000,000 tokens per month.
POA: 33% of 3,000,000 tokens per month.
Months 5 - 12: After 5 months, each month will witness a 1% reduction in the POA share, which will be reallocated to TSS. By the conclusion of month 12, the TSS share will ascend to 75% and POA share will be reduced to 25%.

please note the POA share is merely an estimate, based on what amount of POA participants currently exist and how much more POA positions will be awarded, but rewards are distributed totally linear, meaning yourStake divided by totalStake * monthlyRewards = your $PION payout.
Example:
imagine a user has 5,000 bonPION staked the total staked amount is 500,000 bonPION, he will receive 1% of 3,000,000 PION per month.

4. Initial Supply for Launch: Prior to the official launch, the Pion team will operate POA nodes for approximately a week, generating an estimated 350,000–700,000 $PIONs. These tokens will be made available on CEX on Day 1, enabling both new and existing users to purchase $PION for node initiation.

Beyond this, additional $PIONs can be procured solely through node operation.

5. Airdrop Mechanism: To catalyze node operations, the Muon team will distribute bonded PION in the form of NFTs (bonPION) to all $MUON presale participants and ALICE node operators. A cumulative total of 27,500,000 PION will be encapsulated within these bonPION NFTs and disseminated to users via the pion.muon.net/claim portal.

Visit Pion’s landing page.

Muon Network

Muon is a stateless decentralized oracle network (DON) that enables dApps to make their off-chain components decentralized. By incorporating Muon, the manner in which decentralized applications store, process, and access data will be fundamentally transformed, redefining the landscape of decentralized systems.