What are Token and Tokenomics?
Tokenomics is, as apprehended, made of two words: Token and Economics. It is, therefore, the economics of tokens. But, prior, you must have been thinking about what a token is? A crypto token is a virtual currency that a user holds for various purposes such as utility, security, or governance. It is basically a denomination of a cryptocurrency that can be traded like any other cryptocurrency.
Tokenomics, now certainly, is the economics of a token which includes its production, quality, distribution, management, and related concepts. It helps in determining the value of the token.
Traditional Economy and Tokenomics
The study of Economics refers to the working of the Economy while understanding the various underlying concepts of market, money, institutions, demand, supply, etc. in order to ascertain the opportunities and challenges coming next. Similarly, Tokenomics refers to studying the working of a token that works in a decentralized way along with various underlying concepts.
For example, with the study of Tokenomics, we can ascertain the value of a token which depends upon many factors such as: how it is built, where it’s built, quality, fungible or non-fungible, its distribution, etc.
What is PTM?
Tokenomics of PTM token
PTM tokens are exclusive tokens of Pentonium. They form an essential part of the Pentonium platform and the entire ecosystem runs on these tokens. For all the users of Pentonium, whether freelancers or businesses, the PTM tokens drive all the transactions happening on this platform.
There are various uses of PTM tokens throughout the Pentonium platform as:
- Freelance platform charges a 5% fee in PTM on each order completion which will be locked in the escrow from the day of order till the delivery.
- For running ads for a day, Service Providers need to have a minimum of 100 PTM
- In case of dispute, both parties pay a dispute fee in PTM which is 1% of the order.
- Marshals are required to lock a minimum of 1,000 PTM or more to earn a dispute fee.
- To become a Marshal, one needs to go through voting and the community needs a minimum of 10,000 PTM to vote in or against a Marshal.
- Pentonium creates staking pools, which require PTM to be locked over a period of time, to earn rewards
Distribution of PTM tokens
The PTM tokens have already been minted with a total of 100 million in number over Polygon network. These tokens are planned to be released over a period of four years.
The distribution of PTM tokens is going to be among:
Pentonium has allocated 10% PTM tokens for the Ecosystem with a vesting period of 2 years. From Q3, 2023, 10% tokens will be released every quarter till 10 quarters.
- Team Allocation
For Team, 20% of Token is allocated which will not be released until Q2, 2023. It will be from Q3, 2023 to Q3, 2024, 20% of total tokens will be released periodically.
For Liquidity, Pentonium has reserved its 20% PTM Tokens. These 20% tokens are planned to be released in the following schedule:
- 40% will be released in the first-year
- 30% will be released in the second-year
- 20% will be released in the third-year
- 10% will be released in the fourth-year
Every deal on Pentonium will be incentivized with tokens reserved for the Community. The distribution for the community is fixed at 15% of total minted tokens. These tokens are also planned to be released in the course of 4 years, according to the following schedule:
- For first-year — 40%
- For second-year — 30%
- For third-year — 20%
- For fourth-year — 10%
- Token Sale
For a private sale, 35% of PTM has been reserved. These tokens will also be released over a period of 4 years.
This forms the complete tokenomics of PTM tokens minted for use in the platform.
Pentonium is a decentralized freelance platform aimed at creating a new structure for freelancing. Our motive is to eliminate the pain points of our users, clients as well as freelancers, enhancing privacy through P2P chat services facilitated by Skynet and IPFS for the storage layer. Pentonium also provides a community-based solution to create an automated dispute resolution layer around it.