The PAYT token distribution has been designed for the short and long term success of PayAccept and its Community.
- PAYS is the governance/security token of PayAccept (to be issued);
- PAYT is the utility token of PayAccept;
- Total supply is 45M PAYT;
- Team is holding 9M PAYT;
- Community is holding 6M PAYT;
- 5M PAYT tokens will be minted by PayNodes;
- The rest (25M PAYT) will be used for liquidity, treasury and further public sales.
PayAccept was created to make Decentralized Finance accessible to everyone in the world. It is crucial for the success of the PayAccept to be decentralized.
With more than 24k people on Twitter and 15k on Telegram, the PayAccept community has gained a lot of momentum. This community remains the top priority for the project and we hope that thanks to the PAYT token it will keep growing in a healthy way!
In this post, we would like to share our plans for the PAYT token distribution and utility.
With a total initial supply of 45M, the main purposes of the PAYT token are to get as many people involved as possible in decentralized finance.
The vision for the PAYT distribution is that it needs to be multi-year, extended, and sustainable until the protocol reaches ubiquity. With this in mind, the token distribution is broken down as follows:
- 42,5% will be used for further liquidity, treasury and public sale;
- 20% To the PayAccept Core Team;
- 15% To Early Backers (presale investors);
- 12,5% To PayNode Minters;
- 10% To PAYT current and future strategic partners, for grants, advisors of the project and valuable community members
PAYT Minting Program
PayAccept has plans to distribute 12,5% of its supply through PayNode mining over 5 years.
More specifically, these 5,000,000 PAYT are going to be distributed through staking contracts for PayNode holders, directly to HAs or even to the LPs of some AMM pools involving tokens. These staking contracts were designed to be completely fluid with no lockups or epochs: the longer PayNode holders stake their tokens, the more PAYT tokens they accumulate. The current APY is set to 50%.
Each month an amount of tokens will be distributed to the different contracts with an allocation across the staking contracts.
This design is for the moment based on off-chains mechanisms and is going to be implemented by a multisig held by the Core Team. Governance will however be able to change these parameters.
Everything has been decided to incentivize early users while avoiding short-term mercenary capital and making sure that the protocol will still have ways to attract new participants over the long term.
At launch of the PayAccept application, the team will allocate 20% of their tokens into the PAYS pools, the rest will be in control by the community, which hold PAYS tokens. Only with PAYS, voting is possible. It will be able to vote for how and where to allocate these tokens. Once again, we feel that the Community is the best partner to decide where to allocate their tokens. Every PAYT holder has the ability to swap to PAYS (one-way) due a mint-burn mechanism. In other words all converted PAYT will be burn and PAYS will be minted after verification of the holder. This to make sure that the vote is legally binding.
One other idea of the Core Team is to sell a big portion of their tokens through a bonding curve or directly thoughout the app, to let new investors flow into PayAccept. This would allow the tokenimics to accumulate some surplus, to deflate the total supply and most of all to reduce the control of a big portion of its reserves.
Core Team, Early Backers and Strategic Partners
The tokenomics plans for 15% of the tokens to go to the Core Team. The goal is to keep a meaningfully incentivized but non-controlling core team, while maintaining long term alignement. To this extent, the tokens of the Core Team are subject to a 3-year vesting to make sure that founders and team remain fully committed to PayAccept and the community. 2% of these 15% (= 0.30% of the total supply) will be made available initially, and the remaining tokens will follow a linear vesting schedule.
To fund extensive security audits and recruit top tier talent for the protocol, the PayAccept Team raised funding and distributed 15% of the tokens to early backers. Yet, we want to clearly demonstrate that we prioritize more the Community and the PayAccept success with this token distribution.
Overall, one key thing to note is that liquidity distributed through liquidity mining to the Community will be bigger than that going to team and early backers. This ensures that the Community will remain in control, and that the Core Team and early backers will never have too much influence.
Strategic Partners and Community Grants
5% of the initial team tokens will be held by the Core Team are available for distribution to the Community as grants or bug bounties, to strategic partners like exchanges for listing, but also to the most active and helpful community members as well as to advisors helping the protocol grow.
While the PayNode Mining program is fair in a proportional way, it still favors users with more capital. We believe that grants and community rewards may be a way to distribute governance into the hands of users in a non-capital dependent way and hence to contribute to creating a robust and incentive-aligned community.
A portion of these tokens may also be distributed back to the PAYT Treasury, throughout liquidity mining, transactions or curve programs if it is believed to become the best way to incentivize the community.
While token distribution is important, it is even more crucial to stress out what this token will be used for. The PAYT token is the angular stone of PayAccept. The token gives the right to participate in governance votes by converting the to PAYS, or used as a utility thoughout the extensive PayAccept application. This goverance will be responsible for parameters tuning, deploying new features, accepting new collateral types, upgrades and integrations.
While a portion should serve as a buffer to continue to absorb collateral volatility and earn yield to grow over time, this surplus could also be allocated to support initiatives around the protocol or for PayAccept buybacks under the form of auctions like is done by Maker DAO. The advantage of buybacks is that they align the incentives of PAYT holders with the rest of the PayAccept ecosystem. Bought back PAYT could be either burnt, go back to the Treasury or be distributed through mining or staking program.
The PAYT token distribution was designed to help the project grow in a healthy way and sustain the vision of the protocol as a tool designed to make Decentralized Finance more inclusive.
There are always tradeoffs when structuring a tokenomics for the short and long-term success of a token and protocol. We tried to make a system that puts community at the front, before team and early backers, with a mix of capital-dependent and non-capital dependent incentives!
What’s Next: Launch Plans
PayAccept will be live in Q3-Q4 2023. We will launch as a mobile and webapplication, available on Google and Apple Appstores, also we are going to launch the first liquid and reliable Euro stablecoin, backed by ourselves. The launch of the PAYS governance token will take place within this periode, with an liquidity ETH/PAYT pool available to get immediate liquidity on the token. The available liquidity at launch will therefore be that on a Launchpad. The final plan is that after 5 years, the total supply will be circulating on several exchanges, bringing a decent value of the token.