Introduction
Welcome to the inner workings of PintSwap, an OTC Orderbook DEX protocol that brings a fresh approach to trading lowcaps, supported by solid tokenomics.
In this article, we’ll take a closer look at our tokenomics model. We’ll explore its distribution, utility, and the governance mechanisms that steer our ecosystem’s progress.Without further ado, let’s dive into the intricacies that make PintSwap a unique and promising addition to the world of DEXes. Let’s get started!
Utility of the $PINT Token
The $PINT token lies at the core of PintSwap’s ecosystem, playing a pivotal role in capturing and distributing value generated by the project. Its utility extends across various facets, each designed to benefit token holders and support the protocol’s growth.
Initially, the PintSwap protocol will have 4 major revenue streams (with more to come in the future):
Market Making
PintSwap’s protocol acts as a market maker, providing liquidity for specific trading pairs. This fits into the high-volume, low-liquidity profile. Our focus will also be on the tokens with a buy and sell tax on them. Specifically, we will target pairs with the most demand, and therefore, with the most profit potential for the protocol and our holders. Profits earned through these market making activities are distributed to the treasury and to $PINT holders, boosting its liquidity and ensuring sustainable growth, with 40% going to the $PINT holders and 60% going to the treasury.
Trading Fees
Every trade conducted on the PintSwap platform will incur a 1% trading fee. In the future we will start working with variable trading fees for different pairs. A 1% trading fee is viable on lowcaps, however, for the more established pairs this rate would not be competitive. The 40/60 split will apply here, providing a consistent revenue stream. These fees help sustain and develop the platform, ensuring it remains competitive and secure.
MEV/Arbitrage strategies
As PintSwap starts attracting liquidity for different Pairs, there will be inefficiencies between the PintSwap orderbook and the other DEXes out there. PintSwap will leverage these inefficiencies through the OPPS mechanism. The OPPS mechanism is part of the PintSwap protocol and makes use of the MEV strategies, which will protect users from the usual threat of economic attack from MEV bots, while capturing value for the protocol. A more technical explanation will be provided in our Litepaper (soon to be released). This captured value is then distributed among the $PINT holders, contributing to their benefits and incentivizing participation in the ecosystem. A 40/60 split is also applicable to these strategies.
Uniswap Taxes
At TGE, 2% of the total $PINT supply is allocated for the LP pool; the target is an LP pool with $300k ($150k ETH / $150k $PINT) on Uniswap. Therefore, the exact number can deviate from what is stated here. This pool carries a 5% buy and 5% sell tax. These taxes serve as a revenue source, channeling value back into the project’s treasury and rewarding $PINT token holders simultaneously. This mechanism aligns incentives among token holders and ensures a sustainable funding source for ongoing development. For the taxes, the same 40/60 split will apply.
NOTE: The proposed 40/60 split is intended to extend the runway to build out what we envision for PintSwap; however, once the trading volume/fees increase, we will lower the percentage that goes to the treasury and increase the percentage that goes to $PINT holders.
In summary, the $PINT token boasts a multifaceted utility, not only as a medium of exchange but also as a mechanism for capturing and distributing value generated by the PintSwap protocol. In the future, more revenue streams/utility will be added to the $PINT, driving even more demand towards the token. Some examples are the ability to pay for the trading fees with the $PINT token and the reduction in trading fees by holding X amount of $PINT tokens.
Token Distribution
Max Supply: 1,000,000,000
Team: 20%, 3-month cliff, 12-month linear vesting
Advisors: 3%, 3-month cliff, 12-month linear vesting
Seed round: 5.2%, 25% unlock at TGE, 12-month linear vesting
Public Sale (TRIS): 10%, 100% unlock at TGE
Liquidity TGE: 2%
Treasury: 10%, 25% unlock at TGE, 12-month linear vesting
PintDAO: 49.8%, Fully locked until the governance framework is set up, which will be set up after TGE. No tokens will be released until this framework is set up. There will be no sudden unlocks!
Governance and Decision-Making
$PINT token holders have a say in PintSwap’s future through voting. We want the community to be actively involved in the direction of the protocol. They can propose and vote on changes, upgrades, and features, fostering a community-driven approach to decision-making. Active participants may also earn rewards. This transparent process ensures the platform evolves to meet users’ needs.
How will the initial circulating marketcap at TGE measured?
Since we want to launch with a fair valuation model for our TGE, we decided to implement a mechanism that we believe will give us the most fair valuation. It will be based on the value of the TRIS collection.
Marketcap at launch = 7-day TWAP of TRIS (in ETH) * 1,000
What is ‘’7-day TWAP of TRIS’’?
This is the time-weighted average price of the 7 days before our TGE.
Calculation of the price:
We will take the average price of each of the 7 days before our TGE. (average price day 1 + average price day 2 + etc etc) / 7
If, on each of the individual days, no trade has taken place, we will take the floor price of that day.
Why did we not simply use the floor price of the TRIS collection?
We believe the above mechanism will give us a fairer valuation than only using the floor price of the collection, considering the floor price of the collection is much easier to influence than the mechanisms we put in place.
How many $PINT tokens will I get for my TRIS NFT?
The TRIS collection (1,000 NFTs) represents roughly 63% of the circulating $PINT supply at TGE.
Total $PINT supply = 1,000,000,000.
TRIS collection represents a total of 100,000,000 $PINT tokens.
1 TRIS NFT = 100,000 $PINT tokens
Circulating supply at TGE = 15.8% (158,000,000 $PINT tokens)
This means that each TRIS NFT is equal to 0.063% of the circulating supply at the time of our TGE.
Conclusion
To wrap it up, PintSwap’s tokenomics is designed to enhance transparency, community involvement, and utility within our ecosystem. We’re genuinely excited about our upcoming TGE, and we think you should be, too, especially if you’re a degen looking for innovation. Join us on this exciting journey ahead!
