Pona Network Tokenomics

Token Utility

The native token of the Pona Network has a wide range of utilities that fuel the ecosystem:

• Staking & (Re)Staking: Users can stake their native tokens in multichain staking pools, earning rewards through participation. With Pona Network’s Universal Native (Re)Staking, users can restake their tokens across different blockchains, maximizing their yield potential. This cross-chain staking flexibility sets Pona apart from other Layer-2 protocols.
• Transaction Fees: The native token is used to pay for transaction fees on the Pona Network. Thanks to the highly efficient Soma Gen 2.0 zkVM architecture, transaction fees are kept low, making it affordable for users to interact with the network, whether they're staking, transferring assets, or engaging with dApps.
• Governance: Token holders play a critical role in the governance of the Pona Network. By staking tokens in governance contracts, users gain voting rights and can participate in decision-making processes such as protocol upgrades, staking policy adjustments, and future feature implementations. This decentralized governance ensures that the network evolves in a way that reflects the community’s interests.

Incentives and Rewards

In addition to staking rewards, the Pona Network will offer additional incentives for early adopters and active participants in the ecosystem. These incentives may include bonus rewards for staking during specific periods, liquidity provision, and contributing to network security.

Token Distribution

To ensure a balanced distribution and long-term sustainability, Pona Network will follow a structured token distribution model:

• Staking Rewards (40%): The largest allocation is set for staking rewards, encouraging users to actively participate in Pona Network’s multichain staking pools. By providing liquidity and securing the network, stakers receive tokens over time, incentivizing ongoing support and fostering a robust network.
• Development Fund (25%): A substantial portion of tokens is reserved for continuous innovation and network improvements. This fund supports zkVM technology advancements, infrastructure enhancements, developer grants, and long-term project growth to ensure Pona Network stays at the forefront of blockchain innovation.
• Ecosystem & Partnerships (15%): These tokens will be used to develop and expand the Pona Network ecosystem through strategic partnerships and integrations with other blockchain platforms. Additionally, the allocation promotes decentralized application (dApp) development, ensuring Pona Network grows as an interoperable and collaborative environment.
• Team & Advisors (10%): The team and advisors who have contributed significantly to Pona Network’s development will be rewarded through this allocation. Tokens for the team and advisors will be vested over time, ensuring their ongoing commitment to the network’s long-term vision and objectives.
• Community & Marketing (5%): To build and engage a vibrant community, 5% of tokens are set aside for marketing efforts, user acquisition, and community-building initiatives. This allocation will be used for campaigns like airdrops, bounties, and promotions, raising awareness and boosting user adoption.
• CEX Listing (5%): 5% of tokens are reserved for listing on centralized exchanges (CEX). This ensures market liquidity and accessibility, allowing early adopters to trade Pona Network tokens, enhancing the network’s visibility and encouraging broader participation.

Economic Model

Deflationary Mechanism

Pona Network implements a deflationary token model to maintain long-term value and incentivize token holders. A percentage of transaction fees collected on the network will be periodically burned, reducing the overall token supply and creating a scarcity effect. This deflationary mechanism is designed to increase the value of the native token over time as adoption grows and transaction volume increases.

Earning Mechanisms

• Staking Rewards: Earn rewards by staking native tokens in multichain staking pools.
• Restaking Across Chains: Maximize yield potential by restaking tokens in various pools across different blockchain ecosystems.
• Liquidity Provision: Earn incentives by providing liquidity to key network pools.
• Governance Participation: Active participation in governance decisions may also earn additional rewards.

Sustainability & Long-Term Growth

The tokenomics model of Pona Network is designed to ensure the network’s long-term sustainability. With a focus on continuous staking rewards, developer incentives, and community-driven governance, the ecosystem is built to scale while maintaining decentralization and security. By aligning incentives with network growth and token scarcity, Pona Network is committed to providing long-term value to its users and token holders.