DEX Tokenomics Improvement Proposal Goes to Voting, 57% of the PNG Token Supply Set to Be Burned

DEX Tokenomics Improvement Proposal Goes to Voting, 57% of the PNG Token Supply Set to Be Burned
DEX Tokenomics Improvement Proposal Goes to Voting, 57% of the PNG Token Supply Set to Be Burned

Pangolin, a decentralized exchange (DEX) built on the Avalanche blockchain, has opened the voting on its tokenomics improvement proposal. The proposal suggests the reduction of Pangolin’s native token PNG supply by 57%, effectively reducing its maximum supply from 538 million to 230 million. This proposal will be implemented within Pangolin V2, which is set for launch on November 21st.

According to the documentation, Pangolin’s tokenomics improvement proposal aims to introduce a more sustainable token distribution model. As such, the proposal suggests reducing the 28-year emission schedule to 4 years. In addition, a deflationary model will be adopted, with the number of emissions set to reduce by 1000 tokens each month.

PNG’s projected deflationary supply curve (4-year period)

Currently, Pangolin emits 175,000 PNG tokens as incentive rewards for liquidity providers. Once the improvement proposal is adopted, consecutive monthly emissions will be reduced by 1000 for every period. Meanwhile, 57% of the PNG token supply that remains after the 4-year emission period will be sent to a burn address, reducing the maximum supply overall.

Besides altering the PNG tokenomics supply, the improvement proposal suggests a 30 million PNG token allocation to a foundation (roughly 13% of the new 230 million max supply). These funds will be used for the long-term sustainability of Pangolin’s ecosystem, enabling operational activities such as funding ongoing development, paying salaries to core team members, and providing more incentive schemes for the Pangolin community.

Pangolin V2 Debut

With barely a year since the launch of Pangolin V1, this DEX has enabled over $8.7 billion in transaction volumes. This has proven the potential of its community-driven approach and Automated Maker Maker (AMM) model within the Avalanche network.

Notably, Avalanche currently boasts as the fastest smart contract ecosystem in terms of transaction finality. It is also cheaper and more environmentally friendly than Ethereum, which is among its biggest rivals.

That said, Pangolin V2 will be a game-changer for crypto users looking to swap tokens on Avalanche. This new upgrade will feature Pangolin’s improved tokenomics, where the emission schedule is set to be capped at 4 years while 57% of the tokens will eventually be burned/removed from circulation permanently.

“Today, we are excited to announce an overview of Pangolin V2. We are targeting the launch of our new smart contracts on November 21st with deployment on Avalanche Mainnet.” reads a blog announcement by Pangolin. 

Per Pangolin’s blog announcement, V2 will also include other features such as liquidity provider optimization, additional LP rewards, and a new UX. The liquidity provider optimization will enable LPs to earn more rewards based on the improvements made on Pangolin’s smart contracts.

On the other hand, the additional LP rewards are an incentive for LPs in priority farms as a way to celebrate the V2 launch,

“Pangolin will distribute the $4 Million USD of PNG tokens as rewards to liquidity providers in priority farms during the next 30 days to celebrate Pangolin V2,” added the blog. 

Following this milestone, Pangolin also noted that they will be releasing more updates and initial documentation in the coming days while welcoming feedback from the community.

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