PERP is Perpetual's native protocol token and is issued by Perpetual DAO.
The PERP token is primarily a utility token designed to facilitate and incentivize the decentralized governance of the protocol. As such, holders of PERP tokens accrue voting rights proportional to their holdings.
To incentivize governance participation, we have designed the following incentive structure:
Staking rewards & trading fee rewards increase > 2. PERP token value increases > 3. PERP token awareness increases > 4. Protocol awareness increases > 5. Trading volume increases > 6. Trading fees increase > Back to 1.
In addition, the Perpetual Protocol team marketing efforts, as well as programs such as Transaction Mining, feed into this loop.
Perpetual Protocol Token
Governance Once PERP token holders have staked their tokens, they can then use their staked PERP tokens to vote on or propose new ideas that can be used to improve Perpetual Protocol. Before the on-chain governance voting platform is ready for PERP token holders, core protocol contributors will guide critical decisions. We believe it’s important to keep governance nimble in the early days of the Perpetual Protocol. You can learn more about the governance plan here.
Staking PERP holders can lock-up, or “stake,” their PERP for a fixed amount of time in the Staking Pool. In return, stakers receive rewards -- you can learn more about how staking works here.
Balancer Liquidity Bootstrapping Pool (LBP)
Team & advisors
Ecosystem & rewards
The total PERP token supply is set at 150,000,000. The token supply can be inflated via two mechanisms, both of which have a low chance of occurring: Governance may decide to mint more tokens; the insurance fund is exhausted and PERP are minted to make up the shortfall.
Different lots of PERP tokens unlock at different times, according to their purpose.
Balancer Liquidity Bootstrapping Pool
🔓 No lockup -- tokens are liquid upon purchase.
Team and advisors
🔒 Team tokens begin unlocking 6 months after mainnet launch at a rate of 2.1% per 3-month period.
Seed and strategic investors
🔒 Seed and strategic investors receive 25% of their tokens at mainnet launch, and 25% per 3-month period afterward.
Ecosystem and Rewards (not shown in chart above)
🔓 Before the transition to community governance, 10% of these PERP tokens are unlocked. 🔒 After the community governance transition, all of them are unlocked.
In addition to the main staking pool, the Perpetual Protocol team plans to implement additional programs to encourage use of the trading platform and holding of PERP tokens.
A major proposal for getting more PERP tokens into the hands of traders and community members is through transaction mining. Transaction mining will start after mainnet launch and transaction miners will enjoy various rebates when trading on Perpetual Protocol, such as rebates on trading fees and funding fees. Please see Transaction Mining for more information.
Perpetual Protocol has set up a rewards program to incentivize PERP token holders before transaction mining comes online. The program began after the Balancer Liquidity Boostrapping Pool and we plan to continue it for a period after mainnet launch. The program will wind down with progressively reduced rewards to encourage stakers to migrate their tokens to the mainnet staking pool.
Learn more about the program here!
Below is a Google Spreadsheet with PERP’s new token distribution and a comparison to other recently launched IDO projects. Token Distributions of Related Projects