A look under the hood: P2P Finance Tokenomics
P2P Finance is actively building a leading decentralized finance (DeFi) ecosystem on the Cardano blockchain that aligns with the ethos behind the decentralized movement to create more efficient and inclusive digital copies of traditional financial institutions.
P2P Finance is actively building a leading decentralized finance (DeFi) ecosystem on the Cardano blockchain that aligns with the ethos behind the decentralized movement to create more efficient and inclusive digital copies of traditional financial institutions.
Sound project tokenomics is a key factor in keeping everyone’s incentives aligned yet providing sufficient capital for the successful and timely implementation of the project roadmap. This piece details the supply framework of $P2P token and its distribution throughout the project life cycle.
As publicly stated in the website and the official whitepaper, the P2P token will have 4 main use cases, all oriented towards the generation of passive income for the engaged users of the platform. P2P finance users will have the option to use their funds and earn P2P tokens by staking, farming, lending digital assets, participating in the on-chain affiliate system, and boosting their return multiplier by claiming their title in the P2P Finance’s DAO
P2P Detailed Tokenomics
The token has a total supply of 250,000,000 $P2P, distributed across several areas to ensure the project’s future growth and smooth implementation:
A total of 60 million $P2P will be sold (24% of the total supply), while the remainder will be used to bootstrap the project through community incentives, treasury allocation, and compensation for the team, partners, and advisors. 10% of the token’s total supply, 25 million P2P, will be sold to venture capitalists and strategic investors in a seed round, while 10% is allocated to the private sale.
In a bid to ensure private sale participants are in the project long-term, a minimum investment of $10,000 is required. Tokens will be sold at $0.10 per token during the private sale and will follow a specific vesting schedule: 5% will be unlocked upon listing of the P2P tokens, followed by 5% unlock after 7 days and a 15% unlock in each of the subsequent months until 100% becomes available to the private sale participants.
The remaining 10 million $P2P will be sold during the public sale. Each P2P token will cost $0.16 which will be unlocked by 10% increments every day.
The team has 4% of the $P2P supply reserved for the people working on the project. To ensure that the team is focused on the goal and carrying out roadmap promises, the release of team tokens will depend on two dimensions: the price action of the P2P token and successful milestone achievements.
The first 500,000 team tokens will unlock once the P2Pswap is launched, 1 million more with the release of the DAO, 1.25 million more with the introduction of Cardanow Launchpad, 1.5million with the release of the lending feature, and the last 2 million after the margin trading implementation.
The team will also be rewarded if the P2P tokens passes certain price thresholds and will receive 1 million tokens when P2P stays above $1 for 72 hours. Extra 1.25 million P2P will go to the team if the price stays above $2 for 120 hours and 1.5 million more P2P will be released when the price will sustain $3 or more for 5 days (120 hours).
P2P Finance’s Token Distribution Incentivizes Growth
$P2P’s tokenomics are structured to bootstrap the project and incentivize growth, so much so that 40% of the token’s supply — 100 million P2P — are meant to be distributed through incentives initiatives. 3% are being sent out to strategic partners in a bid to grow the P2P Finance ecosystem further, while 2% are reserved for advisors with specific knowledge that will help us grow.
The remaining 27% of the supply of $P2P is reserved for the project’s treasury, meant to cover ongoing operations and finance future development stages and further roadmap.
About P2P Finance
P2P Finance is a Defi Ecosystem that brings financial services to the Cardano blockchain and introduces innovative passive income opportunities for the cryptocurrency community while offering peer-to-peer lending services which will feed margin requests on the P2P Finance platform.
The P2P Finance ecosystem offers the whole suite of Decentralized Finance services, including its lending services as well as an automated market maker (AMM) decentralized exchange, derivatives trading, and an initial decentralized offering (IDO) launchpad.
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