Tokenomics

Positive-Sum Launch

PSM is unique in that there was no presale, premine, lockdrop, etc. – everyone had the ability to acquire the tokens at the same time on Uniswap V3.

This is consistent with our overall mission of creating positive-sum systems. This mission requires the support of many people instead of just a few key investors. Giving priority access to some over others often leads to undesirable outcomes such as using the public as exit liquidity. This is detrimental to our community-oriented mission.

In order for our token to fit our positive-sum mantra, we also did our best to mitigate sudden volatility, such as a “pump and dump” scenario. To combat this potential issue, we split up the supply into several UniV3 liquidity pools with very tight ranges, which ensures a minimal impact from slippage.

Token Distribution

Regarding the distribution of PSM, our goal was to balance protocol sustainability with public accessibility. To accomplish this, 10% of the 10Bn token supply was used to seed liquidity in Uniswap V3: half on Arbitrum, and half on Ethereum mainnet. Of course, PSM can always be sent back and forth via the Arbitrum bridge.

The Uniswap liquidity is separated into a set of different ranges, 4 of which are locked as follows:

  • PSM/USDC pool with a 9-month locking period

  • PSM/USDC pool with a 12-month locking period

  • PSM/ETH pool with a 24-month locking period

  • PSM/ETH pool with a 24-month locking period

At the initial funding period, these four pools contained a majority of the tokens, with the PSM/ETH 24-month lock pools being the largest.

Beyond the 10% supplied on UniV3, the core Possum team allocation amounts to 1.5Bn tokens, or 15% of TS. Of that amount, 312M was made available to the team upon the inaugural HLP Portal launch. The rest will vest linearly for 36 months, coming out to 33M PSM per month.

The remaining 75% are held by the Possum treasury, to be used for growth and security of the protocol. These tokens will fund future products, pay for services such as advisors and bug bounties, be distributed as incentives to foster growth, etc.

Here’s a quick recap of the distribution:

Total supply – 10Bn PSM

Uniswap Liquidity - 1Bn PSM

  • 500M on Arbitrum

  • 500M on Ethereum

Team – 1.5Bn PSM

  • 312M (20.8%) released when Portals are launched

  • 1.188Bn earned over 36 months (33M/month)

Treasury – 7.5Bn PSM

  • Will pay for growth & security of the protocol

  • E.g. Advisors, bug bounty, partnerships, incentives/rewards, new products, etc.

PSM Utility

Just as the token launch was positive-sum, the utility of PSM will benefit all parties. With Portals, we have the following demand profile:

  • Funders require PSM to prefund new Portals

  • Portals collect PSM to increase the reward pool

  • Arbitrageurs demand PSM when a Portal’s token balance exceeds the PSM value threshold

The utility of PSM within Time Rift also has significant positive-sum properties:

  • Depositors will be able to distribute PSM (via Energy Bolts) to various addresses (including those of Portals) to earn a higher PSM APY

  • Recipients of Energy Bolts benefit from receiving “free” PSM

  • Entering community members (e.g., FLASH holders) have the opportunity to exchange their token for PSM

  • External projects benefit by receiving assets into their treasury

But it won’t stop at these two examples – we have plenty more use cases up our sleeve. Future products will continue to add utility to the PSM token. Onward!

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