5.7 PATH Token Utility

PATH tokens serve five critical functions in the Path Protocol ecosystem:

1. Platform Registration

Requirement: Stake PATH tokens to register as a platform

Initial Requirement:        10,000 - 50,000 PATH (configurable)
Governance Adjustable:      Yes (via PATH staker vote)

Platform Registration:
├─> Stake required PATH amount
├─> 7-day review period begins
├─> Stake locked during review
├─> If approved: stake remains locked while active
└─> If vetoed: stake returned (minus small penalty)

Unregistration:
├─> Platform voluntarily exits
├─> Must have no active disputes
└─> Stake returned after 30-day cooldown

2. Staking Rewards

Mechanism: Stake PATH to earn 0.1% of all trading volume with optional lock periods and voter bonuses

Base Rewards:

• Proportional fee share from all markets (0.1% of volume)

• Distributed proportionally to stake amount

• Claimable at any time (pull-based, gas-efficient)

Lock Period Options:

Users can choose from multiple lock tiers, each with two unlock modes:

Lock Tier	Lock Duration	Unlock Mode	Total Commitment	Reward Multiplier
Flexible	0 days	N/A	0 days	1.0x
ShortFixed	30 days	Fixed (instant at end)	30 days	1.15x
ShortLinear	30 days	Linear (during 30 days)	30 days	1.1x
MediumFixed	90 days	Fixed (instant at end)	90 days	1.3x
MediumLinear	90 days	Linear (during 90 days)	90 days	1.25x
LongFixed	180 days	Fixed (instant at end)	180 days	1.6x
LongLinear	180 days	Linear (during 180 days)	180 days	1.5x
VeryLongFixed	365 days	Fixed (instant at end)	365 days	2.2x
VeryLongLinear	365 days	Linear (during 365 days)	365 days	2.0x
TwoYearFixed	730 days	Fixed (instant at end)	730 days	2.5x
TwoYearLinear	730 days	Linear (during 730 days)	730 days	2.3x
ThreeYearFixed	1,095 days	Fixed (instant at end)	1,095 days	2.8x
ThreeYearLinear	1,095 days	Linear (during 1,095 days)	1,095 days	2.6x

Fixed Period Unlock:

• Lock tokens for X days, then unlock 100% immediately at the end

• Higher multipliers (1.15x to 2.8x)

• Full commitment required until lock period ends

• Instant unlock after lock period completes

Linear Unlock:

• Lock tokens for X days, with gradual linear unlock during those same X days

• Lower multipliers (1.1x to 2.6x)

• Same total commitment as lock duration

• Gradual unstaking available during the lock period

Voter Rewards:

Active governance participation earns additional bonus multipliers:

Voting Activity	Participation Rate	Bonus Multiplier
Inactive	0%	+0%
Occasional	1-25%	+5%
Active	26-50%	+10%
Very Active	51-75%	+15%
Super Active	76-100%	+20%

Total Reward Formula:

Total Rewards = Base Rewards × (Lock Multiplier + Voter Bonus)

Example:

• User stakes 10,000 PATH with LongFixed lock (1.6x multiplier)

• User votes on 60% of proposals (Very Active tier, +15% bonus)

• Total multiplier: 1.6x + 0.15x = 1.75x

• Base rewards: $100/year

• Total rewards: $175/year

Linear Unlock Example:

• User stakes 10,000 PATH with ShortLinear lock (30 days, 1.1x multiplier)

• Day 0: 100% locked (10,000 PATH)

• Day 15: 50% unlockable (5,000 PATH), 50% still locked

• Day 30: 100% unlockable (10,000 PATH)

• User can unstake gradually during the 30-day period

Staking Process:

1. User transfers PATH to stake account (with optional lock type)

2. Rewards accrue in real-time based on volume and multipliers

3. User claims rewards (pull-based, gas-efficient)

4. Unstake based on lock schedule (if applicable)

3. Governance

Voting Power: 1 PATH staked = 1 vote

Governance Scope:

• Platform Vetoes: Vote to reject malicious platforms (7-day window)

• Parameter Adjustments: Fee rates, stake requirements, oracle params

• Treasury Allocation: Protocol fund spending proposals

• Oracle Disputes: Vote on contentious market resolutions

• Protocol Upgrades: Approve smart contract changes

Governance Process:

Proposal Creation:
├─> Threshold: 1,000,000 PATH staked
├─> Proposal period: 3 days
└─> Description, code changes (if applicable)

Voting Period:
├─> Duration: 7 days
├─> Quorum: 10% of staked PATH must vote
└─> Passing: >50% approval (simple majority)

Execution:
├─> Timelock: 48 hours
├─> Execution window: 7 days
└─> Implementation via multisig + governance approval

4. Resolution Oracle Staking

Requirement: Stake PATH to participate as oracle

Oracle Stake:               10,000 PATH minimum
Oracle Rewards:             Share of resolution fee pool
Oracle Slashing:            10-100% for incorrect/malicious behavior

Oracle Economics:
├─> Honest oracle: Stake returned + reward
├─> Incorrect oracle: Partial slash (10%)
└─> Malicious oracle: Full slash (100%)

5. Platform-Specific Locking

Platform Registration Lock Schedule:

Platforms registering on PATH Protocol must stake PATH tokens with a special lock schedule:

Platform Lock Schedule:
├─> Year 0-5:  Linear unlock per month during 5-year period (60 months = ~1.667% per month)
└─> Year 5+:   Fully unlocked

Lock Details:

• Lock Period: 5 years (1,825 days = 60 months)

• Unlock Mode: Linear monthly unlock during the 5-year period

• Total Duration: 5 years (1,825 days)

• Unlock Rate: ~1.6667% per month (100% ÷ 60 months)

• Reward Multiplier: 1.0x (platforms earn 0.1% fee on markets created)

Platform Lock Benefits:

1. Required for platform registration

2. Earn 0.1% fee on trading volume from markets created

3. Higher governance weight (1.5x voting power)

4. Platform recognition and priority display

5. Long-term commitment signal to users

Unlock Timeline:

• Month 0: 100% locked (0% unlockable)

• Month 1: ~1.67% unlockable

• Month 6: ~10% unlockable

• Month 30: ~50% unlockable

• Month 60: 100% unlockable (fully unlocked)