pTokens
The Rationale Behind Airdropping pCNV Tokens to NFT Buyers in Concave
Introduction:
The Concave protocol is built on the principles of self-organization, collaboration, and community-driven growth. Utilizing both Proof of Work (PoW) and Proof of Stake (PoS) mechanisms, Concave rewards its users for their contributions and commitment to the ecosystem. In this post, we will explore the rationale behind airdropping pCNV tokens to those who only bought the NFTs, and how this decision aligns with Concave's core principles.
Encouraging Participation:
A major objective of Concave is to foster active participation and engagement within the community. By airdropping pCNV tokens to those who bought the NFTs, Concave incentivizes users to become more involved in the ecosystem, as they now have a stake in the project's success. This decision also rewards those who demonstrated early support for Concave, displaying their commitment to the community's growth and success.
Balancing PoW and PoS:
While Concave heavily emphasizes the importance of PoW through tasks such as community engagement and engineering talent contribution, the decision to airdrop pCNV tokens to NFT buyers acknowledges the value of PoS as well. It recognizes that users who invest financially in the project also contribute to its development and stability. By balancing both PoW and PoS mechanisms, Concave ensures that a diverse range of contributions is valued and rewarded.
Conclusion:
The decision to airdrop pCNV tokens to those who only bought the NFTs aligns with Concave's core principles of self-organization, collaboration, and community-driven growth. By valuing both PoW and PoS contributions and acknowledging the importance of early support and participation, Concave creates an inclusive and dynamic ecosystem that fosters innovation and long-term success. (edited) April 11, 2023
pTokens (pCNV) are a way to reward contributors from Concave’s community and working teams. Holders of pCNV can claim dividends, redeem for CNV and trade on Concave’s native AMM.
There is a total supply of 33,300,000 pCNV which are held by the Concave treasury. The total supply of pCNV represents a constant claim on 10% of CNV’s circulating supply. Therefore, as CNV supply grows so does the volume of CNV claimable by pCNV holders. CNV claimable by pTokens is maximized at a terminal supply of 333,000,000 CNV. As supply grows, 1 pToken represents a fixed claim on total supply. Prior to terminal supply each pToken is worth less than 1 CNV. At terminal supply each pToken can claim 1 CNV. Once pTokens are redeemed for CNV they will be burned.
Example: Chad owns 0.025% of pCNV ie. 832,500 pCNV and therefore has a claim on 0.0025% of CNV supply. At a CNV supply of 1,000,000 Chad can claim 2,500 CNV with his full allocation. If supply were to grow to 16,500,000 Chad can now claim 41,250 CNV. At terminal supply of 333,000,000 Chad can claim 832,500 CNV ie. 1:1 pCNV to CNV.
All pToken holders are also subject to a vesting schedule such that any individual's pToken allocation will unlock over time. The vesting schedule for pToken allocation begins with a cliff 3 months after Protocol launch. After 12 months pToken allocations grow linearly and maximize at 24 months.
All pTokens unlocked and allocated can claim a share of Concave PoG airdrop without redeeming pCNV for CNV. Dividend claims on pCNV will receive the highest boost associated with the reward. Furthermore, pTokens share of the dividend is capped due to the supply cap imposed on pCNV.
pCNV will be fully transferable and tradable. This will allow users to provide liquidity for pCNV trading pairs on Concave’s native AMM. This will support further speculative and arbitrage opportunities.
pTokens can be redeemed for CNV directly in the Concave protocol without providing collateral. Prior to terminal supply each pToken is worth less than 1 CNV. At terminal supply each pToken can claim 1 CNV. Once pTokens are redeemed for CNV they will be burned.
Last modified 5mo ago