Economic Model

Token Allocation and Distribution

The P2X protocol features a defined share schedule where 1,000,000 shares are available daily. This supply ensures a known accounting tool. The distribution of these shares is primarily driven through the Auction House participation, where participants deposit PLS coins and receive P2X shares based on their contribution relative to the total daily deposit. Referral bonuses also are distributed on top of these shares until the referral program ends (5% for the referral for using a link and 10% for the referrer).

Allocation of Auction Proceeds

The daily proceeds from the Auction Lobby are allocated in a strategic manner to support various aspects of the P2X ecosystem:

1. Miner Rewards (80%): The majority of the auction proceeds, accounting for 80%, are distributed to the miners. This significant allocation to miners underscores the protocol's focus on rewarding repeat users and participants in the mining mechanism.

2. Benevolent Wallet -BW (14%): To supplement and close the loop on the system, a BW will exist,(with no expectations), to help support the miners by depositing a part of its yield as part of the overall distribution function. This feature ensures that if all users cease to use the protocol, the last miner started will eventually get their 2X ROI. Part of the yield generated will also be deposited into the Bonus Bag.

3. Marketing and Operational Expenses (6%): The remaining 6% is allocated for marketing and operational expenses. This ensures that the protocol has adequate resources for growth, development, and maintaining its competitive presence in the DeFi space.

Total Deposit Limits

To keep the protocol running smoothly and allow users to have a reasonable 2X ROI timeframe, P2X will have limits on the amount of daily PLS deposits.

• A maximum amount of PLS will be allowed to be deposited each day. This maximum amount will vary daily and be shown on the UI.

• This feature, as well as capping miner numbers, will allow for diverse user participation. So, even small players can play with big players as they use the protocol.

Fair Entry into the Mining Group

Because there will be ceiling limits, it will be impossible for whales or groups pooling PLS to fill up an entire day of miners.

• A random selection system will be established to ensure no entity can take all the shares available on any given day.

• If more miners are claimed on any given day that exceeds the ceiling limit for that day, the protocol will randomly select from the awaiting mining pool those that can be started the next mining cycle. Miners excluded from this random selection can be either cancelled or left in the Auction House until the next day to await entry into the mining pool if conditions allow.

• This function, together with the caps for miners, will allow for equitable distribution and fairness for all users of P2X.

Role in Sustaining the Ecosystem

The economic model of P2X is designed to create a sustainable and robust ecosystem. The daily share distribution, coupled with the strategic allocation of auction proceeds, ensures a balanced resource influx, allowing user participation to drive its success. This model supports the potential long-term stability of the protocol and incentivizes repeat user participation.

Conclusion

The economic model of the P2X protocol is its unique design, offering a balanced approach to share distribution, yield, and outside yield generation. It incentivizes repeat use and participation while ensuring the stability and growth of the protocol. Through this model, P2X aims to establish a sustainable and attractive user economic environment.