What is the Utility of PEN?
PEN will be the native token of Pendulum. PEN utilities include powering transactions as the gas token on the Forex-optimized blockchain, governance, and staking. Pendulum’s sister chain Amplitude is live on Kusama and powered by the AMPE token where staking is already live. This article will explore the utility of the PEN token. To see the full tokenomics of PEN, visit the detailed article below:
Gas Token
The Pendulum ecosystem is tailor-made to be the infrastructure blockchain for traditional finance to build their own fiat-focused DeFi services. Many dApps will be built by Fintech and Web3 projects on top of Pendulum, which will birth a new token economy. If you are a developer, you can apply for a Pendulum Ecosystem Grant today. The PEN token will be used to power transactions on the network, similar to how DOT powers Polkadot and ETH powers Ethereum. Transaction fees will be applied when making transactions on the protocol and will be paid using PEN. The transaction fee will be sent to the treasury, defining a sustainable business model for the blockchain.
Staking
PEN token holders will be able to stake (delegate) their tokens with collators and earn yields when they do so. Staking to secure the network will help decentralize the infrastructure by incentivizing external collators to run high-performing nodes. The Pendulum portal on our new website is in development and will be your one-stop shop for swapping, staking, bridging, and governance voting on Pendulum.
Projects will build dApps on Pendulum, and many of these projects will have token economies of their own. These projects may open up new avenues and utilities for the PEN token.
Governance
The PEN community will have the opportunity to participate in on-chain governance to steer the project’s direction. Holders can shape the evolution of the network by proposing and voting on governance referenda. On-chain governance will follow a quadratic voting mechanism to ensure more votes for smaller holders and to disincentivize a single holder from casting multiple votes on a single proposal. Proposals in the following categories can be voted on by the community of token holders:
1. Asset Listings — Listing and delisting the token on DEXes and CEXes.
2. Reward Distributions — The mechanism and amount of rewards distributed to different network players.
3. Parameter Modifications — Technical upgrades, smart contract configuration changes, transaction fees, etc.
4. Community Suggestions — Other suggestions/recommendations from the community.
Summary
Our mission to build the missing link between fiat and DeFi is just getting started. The Polkadot crowdloan is scheduled for this Friday, 16th December, and your DOT contributions will be rewarded in PEN tokens! For more details on the Pendulum crowdloan or to ask any questions about the utilities of PEN, swing by our Telegram or Discord channels and ask away!
About Amplitude
Pioneering the internet of fiat. Amplitude is the sister network of Pendulum on Kusama. It will act as a testing ground for Pendulum applications and network parameters and be powered by the AMPE token.
About Pendulum
Building the missing link between fiat and DeFi through a fiat-optimized smart contract blockchain based on Polkadot’s Substrate. Allowing traditional finance fiat services to integrate with DeFi applications such as specialized forex AMMs, lending protocols, or yield farming opportunities. Developed by SatoshiPay.
Keep your eyes on the Pendulum!
Twitter | Telegram Announcements | Telegram Community | Discord | Reddit
