Token Economics
Token Not Issued — Phase 2 Design
No PAIMON ERC-20 token has been issued on BSC mainnet as of this writing. esPAIMON, vePAIMON, EmissionManager, RewardDistributor and the merkle-root distribution flow described below are all design specifications, not deployed contracts.
The only "PAIMON-named" contracts currently on mainnet are:
PaimonTreasury— fund vault for Launchpad fees & redemption payoutsPaimonBadge— Soulbound NFT for Launchpad participation achievements
These are infrastructure pieces, not the governance token. The allocation table, emission curve, vesting tiers and Boost mechanism below describe the target tokenomics that will activate when (and if) the PAIMON token launches.
Table of Contents
1. Token System Overview
Brief Description: The governance model is centered on PAIMON locked into vePAIMON. Participation incentives (e.g., jPP staking) may distribute esPAIMON, which can vest into PAIMON and optionally be locked into vePAIMON to join governance.
Token Stack
PP
ERC-20 (ERC-4626 Vault Shares)
Varies with Prime Vault size
Prime Vault Shares, NAV Pricing, Redemption Three-Channel Access, DEX Trading Assets
Prime Vault (ERC-4626)
sPP
Tranche Shares
Varies with Tranche Vault size
Fixed-income tier (e.g., 4%), priority repayment, no governance participation (see Tranche Vault)
Tranche Vault
jPP
Tranche Share
Varies with Tranche Vault size
Exposure to downside risk for leveraged returns; can be staked to earn esPAIMON (see Tranche Vault)
Tranche Vault
PAIMON
ERC-20
10,000,000,000 (Hard Cap)
Governance, staking, liquidity incentives, external incentive assets, protocol value capture vehicle
EmissionManager + Treasury
esPAIMON
ERC-20 Vesting
Subject to emission budget/quota constraints
jPP Staking Mining Rewards; Can be vested to unlock as PAIMON; Also usable for Boost
Reward Distributor / Treasury
vePAIMON
ve (Voting Escrow)
No cap
Gauge Voting, Emission Allocation, Protocol Fee Sharing (per governance charter)
Voting Escrow (vePAIMON)
Token Allocation
Strategic Round
10%
6M cliff + 18M linear
Private Round
10%
6M cliff + 18M linear
Team
15%
12M cliff + 36M linear
Advisors
5%
6M cliff + 24M linear
Ecosystem
5%
0–3% at TGE + 12–24M milestone-based release
Community
30%
Long-term emission; primarily via esPAIMON / delayed release
Liquidity & Market Making
5%
Available at TGE (multisig custody)
Foundation / DAO Reserve
10%
Multisig custody
Marketing & Partnerships
5%
0–3% at TGE + 9–12M linear
Voting / Gauge Incentives
5%
36M linear
Supply Conservation Rule
Emission Ledger: EmissionManager maintains the "Community Emission Reserve." Each time RewardDistributor mints esPaimon, the reserve is simultaneously deducted; if the reserve reaches zero, minting fails immediately.
One-for-One Mechanism: When users claim, an equivalent amount of esPaimon is first burned, then an equal amount of PAIMON is released from the Emission/Treasury inventory. This ensures the actual circulating supply remains ≤ 10B.
Boost Restriction: Only "vested and converted to PAIMON/locked into veNFT shares" contribute multipliers; es still in vesting are excluded from any Boost calculations.
Governance Position Settlement: Governance positions are created only by locking PAIMON into vePAIMON. esPAIMON must vest into PAIMON first. Supply accounting remains one-for-one and prevents double counting.
2. Emission and Budget Allocation
Three-Phase Emission Curve
Phase A: Launch
Week 1-12
37.5M
0%
450M
Phase B: Growth
Week 13-248
First Week 55.584M
1.5%/week exponential decay to 4.327M
≈ 8.55B
Phase C: Tail Phase
Week 249-352
4.327M
0%
450M
Phase B decay is solidified on-chain with 236 lookup tables, EmissionManager.getBaseBudget(week) O(1).
Demand-Linked Adjustment
Metric Recommendations:
Prime TVL Increment (Week-over-Week)
DEX Depth/Volume (TWAP volume, depth, and slippage for PP/USDC pools)
Premium/Discount Deviation D_t = |P_mkt/NAV - 1| (for risk control reduction, not boosting)
Adjustment Strategy:
Growth/Cold Start Phase: Benchmark Emission × 1.00
Insufficient Liquidity (High Slippage/Low Depth): Allocate more budget toward DEX/LP incentives
Deviation persistently nears protection band: Reduce incentive release speed
Three-Channel Budget Allocation
Prime Growth Incentive
40%
Prime/Tranche Related Gauge
Skewed toward risk-taking activities (e.g., jPP staking)
DEX/LP Incentives
40%
Gauge for PP/USDC Pools
Guide secondary liquidity depth and price discovery
Ecosystem / Gauge Incentives
20%
Treasury / Incentive Budget
Launchpad partnerships, external incentives
Unused budget is returned to the Treasury via reclaimUnused(week) after the cooling-off period.
3. Reward Distribution and Vesting
Multi-Tier Vesting (User Selected)
Fast
90 days
0.6×
50% unvested portion forfeited
Standard
365 days
1.0×
50% unvested portion forfeited
Loyal
540 days
1.2×
60% unvested portion forfeited
Example Calculation (baseReward = 100)
Fast
100 × 0.6 = 60
60
Short-term release, discount factor
Standard
100 × 1.0 = 100
100
Benchmark Tier
Loyal
100 × 1.2 = 120
120
Long-term incentive, multiplier
Boost Mechanism
Boost Inputs
Base: baseline multiplier granted to all eligible positions
Activity / Stake Boost: derived from qualifying activity (LP, jPP staking, etc.)
Governance / ve Boost: derived from vePAIMON voting power
Eligibility Rules
User holds an active qualifying position
User's vePAIMON voting power is non-zero
User complies with transfer cool-down / anti-flipping rules
Key Points
esPAIMON does not carry governance rights - it cannot vote
Governance participation requires PAIMON locked into vePAIMON
Boost multiplier has a soft cap (e.g., 1.5×)
4. Governance and Incentives
vePAIMON Rules
Lock-up periods: 1 week to 4 years
Voting power decays linearly toward unlock
NFTs are transferable with 48-hour cooling-off for voting/claiming
Gauge KPI Constraints
Score < 60 for 1 week
maxWeight reduced by 30%
Score < 60 for 2 weeks
maxWeight further reduced to 40%
Score ≥ 70 for 2 weeks
Weight recovery
Nitro External Incentives
External projects
propose()and require VE voting approvalIncentive assets locked for 4 weeks
Distributed to eligible voters/LPs from preceding two weeks
Early termination requires governance approval
5. Distribution Security
Security Measures
Multi-signature:
submitRoot(newRoot, signatures)requires 3/5 EIP-712 signaturesCooling-off period: Root enters
pendingstatus for 6 hoursRollback Window: Old root claimable for 24 hours, then frozen
Distribution Service: Generates merkle.json, root.json, and summary.txt
Flow
6. Treasury and Capital Circulation
Income Recirculation Formula
Monthly reportIncome(income):
40% → Governance Value Capture (Repurchase PAIMON + lock as vePAIMON)
40% → Ecosystem Incentives (external incentive matching)
20% → Operational Reserve (audits, operations, compliance)
Adaptive Liquidity Weighting
Insufficient DEX depth
Increase DEX/LP incentive weight
Deviation nearing protection band
Reduce short-term release, shift to vesting
Normal
Revert to default weights
Data Transparency
Weekly automated report publishing:
Circulating supply (including unvested amounts)
PP/NAV/Deviation and DEX Depth/Volume
Emission Utilization Rate
Gauge weightings and KPIs
Treasury asset table
7. Metrics and Risk Control
Operational Metrics
Prime/DEX Health
70%–90%
Below 60% → Review incentives; Above 95% → Adjust weighting
Unused Budget Return Rate
< 10%/quarter
Review claim processes
Loyal Tier Proportion
20%–35%
< 15% → Discuss adjustment
Gauge Performance Score
≥ 70
Automatic weight restriction for consecutive low scores
Risks and Mitigation
Oracle Data Manipulation
Keeper Malicious or Data Delay
Multi-source validation, threshold limiting, emergency pause
Spread Arbitrage
Rapid Tier Switching
Weekly Limits, Behavior Monitoring
Guard process failure
KPI Not Updated
Backup daemon + manual override + alerts
Multi-signature congestion
Delayed Root Activation
Schedule adjustments
Treasury repurchase impacts
AMM Liquidity Shortage
TWAP/Batch Execution, Slippage Cap
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