PON Tokenomics — PoN Protocol
Mathematically-grounded token economics with dynamic supply control, transparent allocation, and multi-tier governance security on BSC
Ri(t) = Wi(t) · Umarket(t) · φEpochal reward scales with market utilization
C(t) = β · Vused(t)Client bandwidth consumption triggers token burn
When network utilization exceeds a critical threshold, the burn rate surpasses minting, guaranteeing long-term deflation.
| Symbol | Definition | Range |
|---|---|---|
| γ | Regional density exponent | (1, 2] |
| α | Datacenter penalty coefficient | > 0 |
| φ | Global reward scaling coefficient | > 0 |
| β | Burn rate coefficient | (0, 1] |
| βD | Datacenter-density penalty coefficient | > 0 |
| η | Supply controller learning rate | (0, 0.1) |
40% — Long-term DePIN incentives for network participants and node operators
20% — Dev funding and community-driven proposals via DAO with 1-yr cliff
15% — Aligned with network success via 1-yr cliff and 3-yr linear vesting
15% — Capital raise and initial liquidity with 10% at TGE and 18-mo linear vesting
10% — Unlocked at TGE for exchange price stability
| tokenomics.vesting.tableAllocation | tokenomics.vesting.tableShare | tokenomics.vesting.tableVesting | tokenomics.vesting.tableStrategicGoal |
|---|---|---|---|
| Ecosystem & Node Rewards | 40% | Linear over 5 years | Long-term DePIN incentives |
| Treasury & Governance (DAO) | 20% | 1-yr cliff, then DAO controlled | Dev funding & proposals |
| Team & Advisors | 15% | 1-yr cliff, 3-yr linear | Align team with network |
| Public & Private Sale | 15% | 10% TGE, 18-mo linear | Capital & initial liquidity |
| Liquidity & Market Making | 10% | Unlocked at TGE | Exchange price stability |
Proportional governance to maintain network integrity
Level 1 — Downtime
Reputation decay and temporary reward suspension. No stake loss.
Level 2 — Poor Quality / High Jitter
5% slashing of staked tokens for sustained packet loss and poor connection quality.
Level 3 — Fraud / Sybil Attack
100% slashing, permanent blacklisting, and transfer of seized assets to the Treasury pool.
Complete Whitepaper
Download our comprehensive whitepaper for detailed information about PON tokenomics, the Dynamic Burn-Mint model, and governance security.