πŸͺ™Tokenomics – $XPGN

$XPGN is the utility and governance token of Paragon Protocol. It powers liquidity incentives, veFlow voting, surplus-sharing, and long-term ownership of the network.

Token Details

  • Name: Paragon

  • Ticker: XPGN

  • Standard: EVM (BSC at launch; bridged as needed)

  • Total Supply (hard cap): 550,000,000 XPGN (unchanged; governance-modifiable before mainnet TGE if needed)

  • Type: Utility, governance, and incentive

Testnet note: Any β€œemissions”/rewards on testnet are play tokens or Points. Mainnet parameters below are defaults that governance can ratify or amend.

What $XPGN Does

Utility

  • Incentives: Distributed to liquidity pools via Utilization Gauges (veFlow-directed).

  • Governance: Lock XPGN β†’ veFlow (NFT) to vote on emissions, surplus routing weights, and parameters.

  • Execution Yield: veFlow lockers receive a share of captured surplus from Proof-of-Best-Execution (PoBE).

  • Access: Eligibility for Launch/Creator programs, partner gauges, bribe markets.

  • Stability: Can be routed to Treasury Vault / Shield Reserve via protocol fees + surplus skim.

Wrappers

  • stXPGN: Autocompounding vault receipt for XPGN (used for DAO voting/boosts). Optional adapter lets you lock stXPGN β†’ veFlow directly.

Where Value Comes From (Protocol Revenues)

Two independent engines fund the system:

  1. AMM swap fees (v2 pools): 0.30% per trade β†’ 0.25% to LPs + 0.05% to Protocol Vault

    • Protocol Vault split (governance-set on mainnet):

      • Buyback & Liquidity (POL for XPGN pairs)

      • Shield Reserve (Paragon Shield, insurance/coverage)

      • Ops/Audits (transparent spend via multisig/DAO)

  2. PoBE Surplus (intents + batching): When the solver executes a swap better than the user’s minOut / quote, the surplus is split by default:

    • 60% β†’ Trader instant rebate

    • 30% β†’ LP Rebate Vault (to pools actually used in the route; claimable by LPs)

    • 10% β†’ Locker Vault (pro-rata to veFlow lockers) (Governance can tune, e.g., 55/30/10/5 with 5% to Treasury.)

Additional trickles (small, but additive):

  • Bribe markets (fees on bribe claims)

  • P10 index tokens (mint/redeem fees) once live

  • Listing/creator lanes (optional order-flow sponsorships)

Emissions & Schedule (default mainnet plan)

Goal: reward used liquidity, not idle TVL.

  • Epoch: weekly

  • Base Emissions: E/week (starting level set by governance at TGE)

  • Distribution:

    • 90% β†’ Utilization Gauges (veFlow-directed per-pool emissions)

    • 10% β†’ Builder/Dev stream (ops, audits, grants)

      • Of this 10%: 2% retained by Core (time-vested), 8% to Treasury Vault (weekly)

  • Decay: Governance can enable a gentle emissions decay (e.g., 1–2%/epoch) to target long-term equilibrium.

If you want to keep your prior β€œ10% of every emission is minted to Dev Fund” model exactly: the above preserves it, but time-vested and transparent. It’s cleaner and community-friendly.

veFlow (Locking) β€” Voting & Cashflows

  • Lock asset: XPGN (or stXPGN via adapter)

  • Lock duration: 1–104 weeks

  • Voting power: linear with time veFlow = XPGN_locked Γ— (weeks / 104)

  • Vote on:

    1. Gauge weights (emissions per pool)

    2. Surplus routing weights (which routes tie-break when prices match)

  • Earnings:

    • Locker Vault share from PoBE surplus (default 10% of all captured surplus)

    • Bribes (for both gauges and order-flow markets)

Utilization Gauges β€” Emissions Follow Real Usage

Each pool’s weekly emissions are a blend of votes and use:

  • FUS (Flow Utilization Score) = composite of routed volume share, price-impact smoothness, and liquidity stickiness (see Governance page).

  • Ξ² (utilization boost) default 0.5 (testnet adjustable).

This makes emissions self-correcting: the pools that actually route trades get a boost.

Buybacks, Burns & POL

  • AMM 0.05% fee streams accumulate in Protocol Vault.

    • Governance sets the buyback/POL/Shield split.

    • Buybacks can burn XPGN or pair as POL (XPGN-BUSD, etc.) for deeper books.

  • Optional Burns: Governance can schedule periodic burns from Vault or surplus skim.

  • POL Flywheel: Deeper XPGN liquidity β†’ better pricing β†’ more volume β†’ more vault income.

Initial Distribution (high-level)

If you already published an allocation table, keep it. If not, use this placeholder until governance ratifies exact numbers:

  • Liquidity & Incentives (gauges): xx%

  • Treasury (ecosystem, grants): xx%

  • Team & Early Contributors (time-vested): xx%

  • Public/Community (launch event or fair-launch plan): xx%

(Replace β€œxx%” with your final figures or link to your Allocation page.)

Risk Controls & Limits (token side)

  • Emissions decay and Ξ² caps voted by governance

  • Oracle bands for PoBE accounting (prevents fake surplus on stale prices)

  • Wash-trade filters on FUS (discount sybil loops)

  • Treasury transparency: time-locked, multisig, routine reports

Testnet (next 3–4 weeks)

  • Week 1–2: Points-based veFlow demo, Utilization Gauges with volume-only FUS, basic surplus display

  • Week 3: Live PoBE rebates (small batches), LP/Locker Vault claim pages, bribe market alpha

  • Week 4: Parameter votes (Ξ², splits), oracle bands, anti-gaming filters; docs freeze before mainnet

TL;DR (what changed vs old docs)

  • PRGN β†’ XPGN everywhere.

  • Added veFlow (lock XPGN β†’ voting + surplus share).

  • Emissions now Utilization-aware, not TVL-only.

  • Introduced PoBE surplus sharing (Trader/LP/Lockers).

  • Clarified Protocol Vault funding (0.05% fee + optional surplus slice) and its buyback/POL/Shield roles.

  • Kept the Builder/Dev 10% of emissions but time-vested & transparent; 8% to Treasury, 2% to Core.

PreviousveFlow & Utilization GaugesNextEmissions & Redirects

Last updated