5.8 Value Accrual and Token Economics

Token Demand Drivers:

  1. Staking Yield: 0.1% of all volume distributed to stakers (with lock multipliers up to 2.8x)

  2. Platform Registration: Platforms lock PATH for 5 years (with monthly linear unlock) to participate

  3. Governance Rights: Control over protocol parameters (with voter bonuses up to +20%)

  4. Lock Period Incentives: Higher rewards for longer commitments (1.1x to 2.8x multipliers)

  5. Oracle Participation: Earn resolution rewards

Token Supply Reductions:

  1. Market Creation Burns: 50% of market creation fees burned

  2. Malicious Oracle Slashing: Slashed PATH burned (not redistributed)

  3. Frivolous Dispute Slashing: Failed dispute stakes burned

Deflationary Mechanics:

Annual Volume:              $1B
Creation Fee:               $50 per market (in PATH)
Markets Created:            10,000
Creation Fees:              $500,000 in PATH
Burned (50%):               $250,000 in PATH

At $0.10/PATH:              2.5M PATH burned
Percentage of Supply:       0.25% annual deflation

Plus: Oracle slashing, dispute slashing (variable)

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