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Ecosystem and Economy

PUNK Token Issuance & Operations

This section concisely introduces PUNK’s issuance cohorts and allocation, price floor & step-up policy, reserves and concentrated liquidity, and governance—the operating philosophy and core mechanisms without implementation details.

Summary

  • Issuance Rule: Mint 100,000,000 PUNK whenever verified users exceed each 1,000,000 milestone. Hard cap at 1,000,000,000 PUNK (10 cohorts); permanent issuance stops thereafter.
  • Per-Cohort Allocation: Investors & Founders 35%, DEX LP 5%, Community 60%.
  • Initial Unit Price: 1 PUNK = ₩100 as a price floor (buy wall). All services on Punkpoll can be used at this reference price by purchasing PUNK.
  • Community Rewards: 10 PUNK upon signup; remaining community tokens are distributed based on performance in participation (voting, surveys, channel activities).
  • Price Policy: Price Floor + KPI-based Step-Up (e.g., ₩100 → ₩150 → ₩200 …).
  • Foundation Treasury: Reserves (stablecoins + RWA) for defending the floor; concentrated LP around ±5%.

1. Total Supply & Cohort Issuance Structure

1.1 Supply Rules

  • Currently Issued: 100,000,000 PUNK (based on 1,000,000 verified users).
  • Maximum Total Supply: 1,000,000,000 PUNK (hard cap).
  • Cohort Issuance: Additional 100,000,000 PUNK minted each time verified users surpass 1,000,000.
  • Issuance Gate: On-chain oracle / Safe multisig approval → cohort mint trigger.

1.2 Allocation per Cohort (example: 100,000,000 PUNK)

Category Ratio Amount Notes
Investors & Founders 35% 35,000,000 1-year cliff + 24–36 months linear vesting; blackout around step-up windows
DEX LP 5% 5,000,000 50:50 pairs (PUNK:AVAX, PUNK:USDT, etc.); concentrated liquidity at new reference price ±5%
Community 60% 60,000,000 10 PUNK per signup; remainder used for activity-based rewards (per-campaign policy)

Policy: Community tokens have no monthly hard cap; they are distributed flexibly in line with actual signups and participation.

1.3 Buying & Selling PUNK

  • Demand-side (organizers of votes/surveys): Purchase PUNK via DEX or exchange with fiat or crypto and spend it for services.
  • Users/Participants: Can sell or swap earned PUNK on the DEX/exchanges for AVAX (or other assets).
  • Market Microstructure: All trades occur freely at DEX market prices; liquidity and price stability are supported by the LP configuration.

2. Token Utility

  • Fees & Settlement: Pay for creating, distributing, verifying votes/surveys and issuing on-chain receipts.
  • Participation Rewards: Performance-based payouts for responses, verification, and quality contributions (e.g., spam reporting).
  • Staking / Channel Collateral: Collateral for issuing & operating channel tokens; rights to participate in community governance.
  • Governance: Propose and vote on parameter changes (step-up intervals/metrics/cooldowns, etc.).

3. Price Stabilization Mechanisms

3.1 Price Floor — Reserve (Buy Wall)

  • Principle: The foundation defends the reference price F with reserves so that the market does not fall below F—providing credible protection even when recipients are cashing out reward tokens.
  • Formula: Reserve ≥ α × Circulating × F
    • Example: Circulating 20,000,000; F = ₩100 → ₩400,000,000 reserve.
  • Composition: From ~200k signups onward, start with 100% cash/stable; diversify into AVAX/RWA as the system grows.
  • Operations: Deploy LP as concentrated liquidity (±5%) around the reference price to strengthen the perceived floor.

Terms:

  • Reserve: Funds earmarked to defend the price (buy-side liquidity).
  • α (alpha): Defense ratio (e.g., 0.2 = 20%).
  • Circulating: Current circulating supply (e.g., 20,000,000 PUNK).
  • F: Target reference price to defend (e.g., ₩110).
  • Example: 20,000,000 × ₩100 × 0.2 = ₩400,000,000 reserve required to credibly buy when price threatens to fall below ₩100.

Composition / Operations Details:

  • Initially maintain reserves in cash or readily cashable stablecoins; gradually diversify into RWA and AVAX as the ecosystem scales.
  • LP is concentrated within ±5% of the reference price so that any drawdown immediately meets a tangible buy wall.

3.2 KPI-Linked Step-Up — in Parallel with AMM

  • Triggers (examples):
    • Verified Users (VU) ≥ cohort target.
    • Two of the following met: Channel TVL, Channel token market cap, 30-day trading volume.
    • Reserve requirement satisfied (formula above) + LP rebalanced.
  • Cooldown: After a step-up, no downward re-tuning for 60 days (credibility).
  • Illustrative Roadmap: ₩100 → ₩150 → ₩200 → ₩300 → ₩500 → ₩1,000.

Execution (with AMM):

  • Announce new reference price: e.g., ₩100 → ₩150.
  • LP Concentration: Reposition concentrated liquidity (Uni v3, etc.) around the new reference ±3–7% band.
  • Reserve Deployment: Operate a TWAP buy wall at the lower edge of the band.
  • Public Dashboard: Display reference price, band width, TVL, reserve balance, and the next KPI.

4. Community Rewards (Signup & Participation)

4.1 Signup Rewards

  • 10 PUNK per signup (per cohort: 1,000,000 signups → 10,000,000 PUNK consumed).
  • Policy: 10 PUNK for signup is fixed; participation rewards remain variable (0.1–N).

4.2 Participation Rewards

  • Organizers can set reward amounts per campaign (0.1–N PUNK).

5. Numerical Example (1st Cohort, starting at ₩100, $0.075)

  • Issuance: 100,000,000 PUNK
  • Allocation: Investors/Founders 35M (vesting), LP 5M, Community 60M
  • Signup Rewards: 10M consumed → Community balance 50M
  • Reserve (initial guide): Assuming circulating = 20M and F = ₩100 → ≥ ₩400,000,000
  • 12-Month Target: If KPIs are met, Step-Up to ₩150 (simultaneous rebalance of reserves & LP)