Panther's economy
Panther Protocol economic model
TL;DR
PRPs are exchanged for $ZKP as $zZKP via a single-sided AMM
$ZKP is purchased on the open market using withdrawal fees
45% of the total $ZKP supply is assigned to Protocol rewards and incentives
Introduction
Panther Protocol has designed a circular economy to provide a stable economic model able to withstand sell and buy pressures according to the game theory of the Protocol.
Fee and rewards are designed to balance each other as per the following logic:
More transactions within Panther means more rewards issued to users
Number of transactions will be correlated with withdrawals; i.e. more transactions results in more $ZKP sent to the rewards pool
Increasing the balance of the rewards pool creates a better PRP:$ZKP ratio, hence users enjoy better returns on their PRPs
Let's dive deeper into the reward pool mechanics.
Single-sided AMM
Users are automatically rewarded for conducting specific activities in PRPs; stored as a balance in each zAccount.
The PRP reward spread creates a dynamic distribution model between PRPs and the total available $ZKP rewards in the reward pool at any given time. This is because the $ZKP reward pool has no fixed value, rather it has sources that contribute to it:
Fixed release schedule
Fees
Initially, the main source of $ZKP in the Reward Pool is the fixed release schedule, i.e. the $ZKP rewards supply. This reward pool will emit $ZKP for 12 years. This gives the Protocol time to become established to the extent that the withdrawal fee pool can support the Protocol rewards once the fixed rewards supply is exhausted.
Reward pool top up
Users must sign the transaction and pay the gas on the Ethereum network, to top up the $ZKP pool within the AMM. They earn PRP rewards to facilitate this exchange, this reward increases as the emitted $ZKP pool increases.
PRP exchange
Panther’s AMM functions by allowing users to redeem PRP for $ZKP at a fluctuating rate. Exchange rates in this system are proportional to $ZKP in the pool and the total PRPs available. Through this mechanism, Panther has created a game-theoretical way to price privacy.
What next?
Learn more about Panther's tokenomics
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