Phoenix Network launches a new economic model, log in to Blast L2

Phoenix Network recently announced its official log in to Blast L2 and launched a brand new token and economic model, injecting new vitality into the decentralized derivatives track. The project started its IDO on May 13 and reached its hard cap within 15 days, raising 625 ETH with subscription amounts exceeding 2.4 million USD, demonstrating the market's enthusiasm for the project. This article will detail Phoenix Network's dual-token economic model on Blast L2, including the governance token $PEX and the contribution value token $WIN.

Overview of Phoenix Network

Phoenix Network is a decentralized derivatives trading platform built on Blast L2, aiming to provide an efficient, secure, and transparent perpetual trading environment, attracting users to participate in decentralized finance markets and offering incentives. Its dual-token economic model is an important component of the project, determining not only the token distribution and incentive mechanisms but also influencing the project's long-term development and market performance.

Governance Token PEX

PEX is the protocol governance token of the Phoenix Network, with a maximum supply of 10 million tokens. Its main functions include platform governance voting rights and serving as the primary value storage point for various revenues of the protocol derivatives exchange. PEX is minted by the Phoenix treasury at a rate of 1 token for 0.0002 ETH, with a 10% minting tax charged on each minting.

PEX issuance

The issuance of PEX is closely related to the development of the Phoenix Network. In the early stages of the project, a genesis minting was conducted through an IDO, with a total of 333,333 PEX minted. Subsequent PEX can only be minted through bond sales. The risk-free value of the treasury assets determines the upper limit of PEX minting.

circulation of PEX

PEX holders can earn rewards through staking, and also obtain PEX minted by the treasury by adding PEX-ETH LP liquidity to purchase LP bonds.

PEX's destruction and rights

PEX is closely related to the derivatives exchange PbTrade. In most cases, when traders incur losses, a portion of the profits from the treasury positions is used to repurchase and destroy PEX. In extreme cases, when traders' profits lead to insufficient ETH collateralization, the treasury contract will activate reserve funds to mint PEX to fill the gap.

25% of the trading fees from the derivatives exchange PbTrade will be returned to PEX stakers, enhancing the value capture ability of PEX.

Contribution Value Token WIN

WIN is the protocol contribution value token of the Phoenix Network, with a theoretical maximum supply of 10 billion tokens. It is mainly used to reward those who contribute to the growth of protocol users, while also serving as a burning mechanism to accelerate the release of WIN staking rewards.

WIN's minting increase

WIN is minted by users who stake PEX, consuming USDB. The minting process will cause the price of WIN to rise. PEX stakers need to spend an additional 20% of the staked PEX value (USDB) to mint WIN tokens in order to obtain high compound returns.

WIN redemption and burn

Users can accelerate the release of PEX staking rewards by burning WIN, or redeem WIN for USDB from the USDB vault at real-time prices. These actions will cause the price of WIN to rise.

The Role of the Dual-Currency Economic Model

1. Inject funds and liquidity into the protocol
2. Maintain the stability and balance of the platform
3. Improve transparency and fairness

The dual-token economic model of the Phoenix Network is the core of its decentralized derivatives trading platform. The two tokens, PEX and WIN, interact within the platform's economy to jointly promote its development. PEX serves as a governance token that supports platform governance and development, while WIN acts as a contribution value token that rewards users for their growth contributions. Through the interaction of both, an economic balance within the protocol is achieved, which enhances the platform's transparency and fairness, safeguarding the interests and rights of users.