Navigating the world of decentralized finance (DeFi) can be daunting for beginners. In this guide, we simplify the concept of Primex tokenomics and the PMX token, highlighting its value and role in the Primex protocol.
For a deep dive please refer to the blog post and Primex Tokenomics Paper.
What is the PMX Token?
PMX is the native token of the Primex ecosystem, designed to fuel and govern the protocol. It is an ERC-20 token with a total supply of 1 billion, playing a pivotal role in accessing various features and benefits within Primex.
Utility and Value
PMX serves as both a governance and a utility token. Holders can use PMX to:
Govern the Protocol: Upon the launch of the DAO (Decentralized Autonomous Organization), PMX holders can influence decisions related to the protocol's operation.
Access Features: PMX grants access to various Primex features, enhancing user experience.
Avail Discounts: PMX holders can avail discounts on Protocol Fees, contributing to real revenue for the protocol.
You can see the full list of PMX’s utilities in the table below:
PMX vs ePMX, what's the difference?
PMX's early version, ePMX, is a non-transferable token used during the protocol’s mainnet Beta stage with restricted functionalities. Once Primex v1 enters a stable stage, ePMX holders can exchange their tokens for fully functional PMX tokens.
For more details please see Early Primex token (ePMX) 101.
Primex Tokenomics: How Revenue is Generated
Primex's robust tokenomics is designed to generate real revenue and share it among various participants:
Protocol Fees: Traders pay a fee to the protocol, which can be settled in the native chain’s token or PMX at a discounted rate.
Liquidity Mining: Users contributing liquidity to the protocol earn PMX rewards, promoting trading activity.
Keeper’s Rewards: Keepers, who execute automated actions such as liquidations and order placements, earn rewards in PMX and native chain tokens.
PMX's Initial Distribution
PMX will be initially distributed among different categories to maintain a balanced and sustainable ecosystem:
Community (35%): The largest share, including Early Users, Lenders, Traders, and others.
Team and Advisors (21%): Allocated to team members with a 48-month vesting period.
Strategic Investors (23%): Distributed to strategic partners with an 18-month vesting period.
Treasury (11%): Funds various initiatives and facilitates growth.
Inflation (10%): Utilized for various purposes, with the rate halving at regular intervals.
Conclusion
The PMX token lies at the heart of the Primex ecosystem, offering a range of utilities and incentives while generating real revenue. By engaging with the protocol and understanding the tokenomics, users can tap into the potential offered by Primex and PMX, benefiting from the protocol's growth and sustainability.