Panther’s incentive mechanics allow the protocol to issue rewards to users in the form of units called PRPs (Panther Reward Points) within the Pool. Users receive rewards whenever they conduct an activity beneficial to the protocol’s privacy set, such as depositing assets, triggering internal transactions, using DeFi Adaptors, etc.
Rewards being distributed in PRPs allow for a distribution model between PRP holders and total rewards in the Reward Pool at any given time. PRPs are stored as a balance in each zAccount’s UTXO and are updated upon Spend transactions.
Panther's reward distribution mechanism.
The protocol will initially only charge fees (denominated in $zZKP) from users aiming to withdraw their assets. These fees eventually circle back to being distributed as rewards. Users also pay processing fees for activities that require writing to the blockchain.