PNG Tokenomics & Metrics

Metrics and Info

PNG has reached its maximum supply of 230 million, meaning no new tokens will be minted. All tokens are in circulation, resulting in zero inflation.

PNG is the native governance token of Pangolin Avalanche and can be used for providing liquidity in Pools, single side staking and voting on protocol changes.

PNG Contract Address

0x60781C2586D68229fde47564546784ab3fACA982

Tokenomics

PNG Token Distribution & Distribution Breakdown

• Initial Total Supply: 538,000,000 PNG (V1 tokenomics)

• Months to emit: 336 months

When it was launched in February 2021, PNG had a 28-year emissions schedule with 538M max. token supply. After the proposal to change Pangolin’s tokenomics in November 2021 got approved, Pangolin V2 was launched, improving PNG’s tokenomics, switching to a new 4-year emissions schedule, reducing max. token supply to 230M tokens by ceasing emissions for 57% of all PNG tokens. We have achieved this by writing a proxy contract on top of our existing contracts.

Pangolin V2 and The New Tokenomics Proposal

New total supply and emission duration for the PNG token is as follows:

• Total Supply: 230,000,000 PNG (V2 tokenomics)

• Months to emit: 48 months (starting from February 2021)

PNG's distribution breakdown is as follows:

When it was launched in February 2021, PNG’s token distribution was as follows:

• Liquidity Providers: 95%

• Airdrop: 5%

The airdrop allocation was distributed on the basis of ownership of UNI and SUSHI. In order to claim the PNG Airdrop, UNI and SUSHI holders had to:

• claim from December 7th 2020 via a distribution contract

• claim from same Ethereum wallet address that held UNI/SUSHI

• claim within the first month of Pangolin's launch

The conversion formula from SUSHI or UNI onto PNG is not linear, but rather slightly quadratic. (The conversion rates were chosen by AvaLabs in order to reduce wealth concentration onto large holders of SUSHI and UNI and redistribute more evenly onto smaller holders of SUSHI and UNI)

Specifically, PNG will be claimable pro-rata based on the following formula:

PNG amount = 0.3 * (SUSHI amount ^ 0.8)

30% -- or 7.8M PNG -- to SUSHI holders

PNG amount = 0.7 * (UNI amount ^ 0.8)

70% -- or 18.2M PNG -- to UNI holders

New distribution breakdown after V2 proposal approval in November 2021 is as follows:

• Liquidity Providers (Farms V1): 15.4%

• Liquidity Providers (Farms V2): 68.3%

• Airdrop (claimed): 3.3%

• Treasury: 13%

Pangolin takes regulatory compliance seriously and has not raised and will not raise any funds via a private sale, public sale, ICO, IDO or IEO.

Token Vesting Schedule

Token emissions started in February 2021 and will end in January 2025 (in accordance with the tokenomics update in November 2021). Below are the emission schedule and emission rates for PNG token.

Protocol Fees

For every swap made on a particular Pangolin pool, a 0.3% transaction fee is charged which will be shared among the following parties with the following breakdown:

• Liquidity Pools: 0.25% (in accordance with their share in the particular pool)

• PNG Staking Pool: 0.0425%

• Pangolin DAO’s Treasury: 0.0075%

The 0.3% fee is set forth by Uniswap V2’s smart contracts which Pangolin also uses.

Initially, the fee switch was turned off. At a later stage, however, a governance proposal took place to turn on the fee switch on Avalanche.

Hiring a Market Maker - Fee Switch Proposal

By enabling the fee switch, Pangolin diverts 0.05% of all swap fees to a designated address. The Pangolin fee switch is subject to a 90-day timelock delay and was disabled by default at launch.

Governance decisions that may impact Pangolin’s future development are intended to be decided via governance proposals. In particular, any smart contract upgrades or changes to smart contracts are intended to be subject to a governance vote. In addition, every six months, expenditures for the next six months are intended to be put to a governance vote to manage the budget. PNG holders can vote for or against governance proposals. Although Pangolin has its own custom on-chain governance for Avalanche, governance proposals didn’t start until three months after the launch of Pangolin. This waiting period of three months was to ensure that enough PNG was distributed to the community.

The initial development work for Pangolin was done by AvaLabs. Until an on-chain governance was in place, Pangolin was run by AvaLabs. However, once governance was in place, initial team members were selected by the community.

Disclaimer

This paper is for general information purposes only. It does not constitute investment advice or a recommendation or solicitation to buy or sell any investment, including the PNG token, and should not be used to evaluate the merits of making any investment decision. This paper should not be relied upon for accounting, legal, tax advice or investment recommendations. This paper reflects the current opinions of the authors and is not made on behalf of the developer community of Pangolin or its affiliates and does not necessarily reflect the opinions of Pangolin's developer community, its affiliates or individuals associated with such community. The opinions reflected herein are subject to change without being updated.