🪙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 “emissions”/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 → 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 → veFlow directly.
Where Value Comes From (Protocol Revenues)
Two independent engines fund the system:
AMM swap fees (v2 pools): 0.30% per trade → 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)
PoBE Surplus (intents + batching): When the solver executes a swap better than the user’s minOut / quote, the surplus is split by default:
60% → Trader instant rebate
30% → LP Rebate Vault (to pools actually used in the route; claimable by LPs)
10% → 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% → Utilization Gauges (veFlow-directed per-pool emissions)
10% → 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 “10% 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) — Voting & Cashflows
Lock asset: XPGN (or stXPGN via adapter)
Lock duration: 1–104 weeks
Voting power: linear with time
veFlow = XPGN_locked × (weeks / 104)Vote on:
Gauge weights (emissions per pool)
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 — Emissions Follow Real Usage
Each pool’s weekly emissions are a blend of votes and use:
effective_weight_i = vote_weight_i × (1 + β × norm(FUS_i))
emission_i = EPOCH_EMISSIONS × (effective_weight_i / Σ effective_weights)FUS (Flow Utilization Score) = composite of routed volume share, price-impact smoothness, and liquidity stickiness (see Governance page).
β (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 → better pricing → more volume → 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 “xx%” with your final figures or link to your Allocation page.)
Risk Controls & Limits (token side)
Emissions decay and β 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 (β, splits), oracle bands, anti-gaming filters; docs freeze before mainnet
TL;DR (what changed vs old docs)
PRGN → XPGN everywhere.
Added veFlow (lock XPGN → 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.
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