Overview

XPGN is the core token of Paragon Protocol, used for governance, incentives, and participation across the system. It connects liquidity, execution, and governance into a unified on-chain economy.

Token Details

• Name: Paragon

• Ticker: XPGN

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

• Total Supply (hard cap): 550,000,000 XPGN

• 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.

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What $XPGN Does

Utility

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

• Governance: Lock XPGN → veXPGN (NFT) to vote on emissions, surplus routing weights, and parameters.

• Execution Yield: veXPGN 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.

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Where Value Comes From (Protocol Revenues)

Two independent engines fund the system:

1. AMM swap fees (v2 pools): 0.20% per trade → 0.15% 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% → 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)

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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.

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veXPGN (Locking) — Voting & Cashflows

• Lock asset: XPGN (or stXPGN via adapter)

• Lock duration: 1–104 weeks

• Voting power: linear with time veXPGN = XPGN_locked × (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)

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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.

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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.

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Initial Distribution (high-level)

• 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.)

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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