Last week, we revealed our ecosystem token and strategic partnership with NearPad for the Token Distribution Event. This week, we will be diving into the token economy.
Tokenization has inspired new ways to create, distribute, and enhance values through the use of tokens. Any platform tokenizing their operating model stands to open the door to entirely new process improvements, revenue streams and customer engagement opportunities, as well as streamlining the management of those assets and democratizing its access. However, not all fingers are equal. Not every model works.
Pulse was launched almost a year ago without any token model attached to it. Its user base growth and ecosystem development was a labour of love built around a shared vision to democratize the prediction market and drastically reduce barriers to entry. However, as the ecosystem continues to grow and demands for more markets and timely resolution scale with it, the need to open up the entire ecosystem for participation dawned on us.
Pulse was launched on the idea that anyone should be able to use blockchain to build a prediction market on any topic and that everyone should be free to join and participate. Users will be able to create their own prediction markets about anything, from sports to crypto to reality television in a gamified ecosystem. To do implement this though, there is the need for a token model that rewards all participants fairly, while also making the network resilient.
The Pulse Token
Pulse is designed to fuel a truly decentralised and community-owned, prediction market platform, with every token holder empowered to participate in the ecosystem through a unique alignment of incentives for market creation, liquidity provision, and ecosystem governance. The token has been designed to drive the decentralisation and growth of the platform through the following features:
- Market Creation
Governance: $PULSE enables its holders to vote on protocol changes based on their holding. Every proposal requires a certain threshold of supporting votes in order for it to be implemented. Any token holder can create a proposal for the community to vote on or delegate their voting rights to others.
Market Creation: To create any market on the platform, users must stake $PULSE tokens. 1% of the staked amount is automatically deducted as platform fees. 50% of this fee is burned while the remaining goes into the liquidity pool. This ensures that users only create quality markets and protects the platform from spam attacks. For creating a market, the market creator earns 0.15% on every trade executed for their created market as trading fees
Collateral: Users can leverage the token as collateral for placing bets and liquidity provisioning for any market
$PULSE will have a max supply of 100 million tokens. No additional token will ever be minted. The tokens will be distributed as follows:
50% Liquidity Mining: Liquidity mining over 48 months to create constant yield and sustainable liquidity. The rewards vests linearly for 3 months of vesting. However, users may opt-out of the vesting period at a 50% penalty on their earned reward
30% DAO Treasury: This is the DAO’s war chest which the community can decide on how to allocate. The primary utility will be for incentivising protocol contributors and developers, talent acquisition, marketing, future financing rounds, and KPI incentives, etc. The treasury is fully unlocked at launch, however, its utilisation will be based on proposals voted by the DAO and executed by a multi-sig.
10% Airdrop to Flux Holders and Beta Testers: Pulse’s development owns a lot to Flux protocol as a fork of its codebase and enthusiastic support from the core team. As a result of this, we will be allocating part of the supply to Flux token holder. The specific mechanism for this distribution will be published in a separate article. Beta testers will also receive airdrop for being early supporters and users.
10% Team: reward them for developing the project pre-launch. All the tokens will be in a time-locked contract that the founding team cannot alter. Tokens will be linearly released every month for 1 year, starting at TGE. The vesting contract serves as a medium for voting on governance proposals. If the community decides to do so, whitelist addresses for sending founder tokens can be added through a vote.
What’s Next for Pulse?
With the tokenomics out of the way, next week is going to be action-packed for all things Pulse as we will be announcing the details for our IDO and requirement.