PCM Tokenomics
The PCM token is a fixed supply token with an eventual total supply of 500 million PCM.
Less than 5% of this volume will be minted at TGE (the token generation event), with only 3% of the total possible supply, i.e. 15 million, immediately released, unvested, as liquidity. The remainder of the supply will be subject to a vesting period, as shown in Table 1.
Table 1: PCM token generation and vesting schedule
Title | Total Allocation | TGE Allocation | Cliff (Months) | Vesting (Months) | Fully vested (Months) | Total Allocation | TGE Volume |
Treasury | 22.0% | 0% | 0 | 120 | 120 | 110,000,000 | - |
Core Team | 20.0% | 3% | 12 | 36 | 48 | 100,000,000 | 3,000,000 |
Investors | 4.0% | 3% | 6 | 30 | 36 | 20,000,000 | 600,000 |
Sign-in bonus | 6.0% | 12.5% | 0 | 120 | 120 | 30,000,000 | 3,750,000 |
Initial Liquidity | 3.0% | 100% | 0 | 0 | 0 | 15,000,000 | 15,000,000 |
Advisors | 2.0% | 3% | 12 | 24 | 36 | 10,000,000 | 300,000 |
Rewards | 43.0% | 0% | 0 | 120 | 120 | 215,000,000 | - |
Total |
|
|
|
|
| 500,000,000 | 22,650,000 |
Figure 3 demonstrates how the cliff and vesting schedule will impact the total supply of the token until the end of all restrictions on token release after ten years.
Let's examine how the tokenomics favors the stability and future utility of PCM.
A long-term view
Our decade-long vesting schedule is a far-sighted approach that recognizes the time investment required to expand a global ecommerce marketplace. Delaying issuance of the total supply allows the value of the token to appreciate over time to accommodate the increased supply in the global cryptocurrency ecosystem.
Allocation
Sign-in (Mining) Bonus (6%)
The Sign-in Bonus serves as an incentive for both new and existing participants within the ecosystem, promoting daily engagement on the PCM Wallet. During the pre-mainnet phase, over 700,000 users earned PCM points across PiChain Global DApps, such as PiChain Mall, PiNFT ART, PiSnake, etc. These points will seamlessly migrate to PCM Wallet with corresponding conversion ratios, accounting for 3% of the total supply (15,000,000 PCM). At Token Generation Event (TGE), 3,750,000 PCM, which is 25% of these points will be immediately unlocked, while the remaining 75% (11,250,000 PCM) will be vested linearly over the next 4 years on a yearly unlock basis.
A substantial pool of 15,000,000 PCM (3% of the total supply) is allocated for the Sign-in (mining) Bonus, available for daily mining activities on PCM Wallet. Mining commences upon the launch of the mining function, with rewards distributed based on the daily participation of users. The fixed daily distribution, adjusted monthly, ensures scarcity of PCM token earned from daily mining. For instance, if the daily distribution is 15,000 PCM, and there are 300,000 active miners in the past 24 hours, each miner would receive 0.05 PCM. Monthly adjustments, perpetually set at 3%, maintain scarcity and sustainability.
Notably, these sign-in mining rewards carry no lockup period, allowing users to migrate points to the mainnet after 30 days of mining. This approach aims to enhance ecosystem engagement, fostering user loyalty, and enabling participants to explore the various token use cases within the PiChain Global Ecosystem.
Treasury (22%)
The treasury is important for the sustainable development of the PiChain Global Ecosystem. The treasury will include the reserve, liquidity-pool follow on, future partnerships and developement.
Components of the Treasury:
Reserve: A portion of the treasury is dedicated to building and maintaining a reserve fund. This reserve acts as a financial safety net, providing flexibility for unforeseen circumstances, strategic opportunities, and ecosystem stability.
Liquidity-Pool Follow On: Another facet of the treasury is dedicated to supporting liquidity pools. This allocation facilitates continuous liquidity in decentralized exchanges, ensuring efficient trading of PCM tokens and contributing to the overall liquidity infrastructure of the ecosystem.
Future Partnerships: A portion of the treasury is earmarked for forging strategic partnerships. These partnerships may involve collaborations with other blockchain projects, businesses, or entities that align with the goals and values of PiChain Global. Such collaborations can foster innovation, expand the ecosystem, and enhance the overall utility of PCM tokens.
Development: A substantial part of the treasury is allocated for future development initiatives. This includes funding for research and development, technological advancements, and the ongoing enhancement of PiChain Global's infrastructure. These funds empower the team to stay at the forefront of blockchain technology, ensuring continuous innovation and growth.
Rewards (43%)
The Rewards allocation, constituting 43% of the total token supply, is designed to recognize and incentivize active participation within the PiChain Global Ecosystem.
1. Staking Rewards:
Objective: Incentivize users to stake tokens, contributing to the long-term security and stability of the PiChain Global Ecosystem.
Mechanism: Users can stake their tokens for a selected amount and period upon the mainnet launch. Staking rewards are distributed accordingly, with higher rewards in the first year to encourage early adoption. Rewards decrease gradually in the first 5 years through an annual rewards thirdening mechanism.
2. Community Initiatives:
Objective: Recognize and reward participants in the PCM DAO (Decentralized Autonomous Organization).
Mechanism: Participants engaging in community initiatives, including community management, moderation, education, and the operation of PiChain Global DApps, are eligible for rewards. This includes contributors to marketing, business development, and various community-driven activities.
3. Community Operation Centers:
Background: Over 100+ Community Operation Centers have played a vital role in PiChain Global's development over the past 3 years.
Contribution Areas: These centers actively contribute to community management, moderation, education, and the operation of PiChain Global DApps.
Recognition: Participants in Community Operation Centers are rewarded for their efforts, acknowledging their significant contribution to the ecosystem's growth.
4. Engagement in PCM DApps:
Mechanism: Users engaging with PCM DApps are eligible for rewards. Additional reward mechanisms will be announced as DApps evolve. External DApps will be integrated into the PCM Wallet SDK, enabling PCM as rewards and payment. Participation in the DAO and holding PiChain Global's official NFT collection also entitles users to rewards.
Core Team (20%)
Investors (4%)
Advisors (2%)
Buyback
A buyback strategy can help ensure that PCM prices remain stable, by limiting the volume of tokens in circulation. Limiting supply in this way helps to increase demand and, therefore, value.
By assigning treasury funds to our buy-back strategy, PiChain Global will reduce the number of tokens in circulation. This should positively impact the price of the circulating supply of tokens. As a result, token holders see the value of their tokens increase. This virtuous cycle provides a win-win for both PiChain Global and the token holders, whether they are sellers or customers.
Rewarding honest players
The PCM token airdrop strategy is designed to encourage the reputational growth of those honest players in the system. From rewarding customers who write reviews of goods and services, to rewarding sellers who stake their $PCM, these token distribution events encourage participation in the system and account for 43% of the total token allocation. And, this is the base allocation, not taking into account those additional tokens that will be available to the treasury thanks to the buyback schedule.
Notice that this reward system mitigates against the risk of an early sell pressure, and, therefore, avoids adding volatility pressures to PCM. Instead, we have taken the long view; with the rewards being released gradually over the decade-long vesting schedule.
Encouraging participation
Just as the rewards schedule is designed to limit any pump-and-dump, so too is the airdrop, or sign-in bonus. This bonus is limited to just 6% of the total allocation and acts to encourage new participants to come and join the ecosystem, and to encourage existing users to sign in on a daily basis – increasing the ecosystem’s stickiness. We predict that recipients are most likely to use this bonus to participate in the system because of the utility of PCM as a currency of exchange within the ecommerce platform. Over time, this sign-in bonus will be reduced in negative correlation with the growth of the existing ecosystem and its participation.
The PCM tokenomics issuance schedule is designed with the long-term growth and health of the ecosystem in mind. We recognize our responsibility to the entire ecosystem to maintain a healthy economy by providing a stabilizing tokenomics that is not vulnerable to extremes of volatility or inflationary pressures.
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