Analysis of the Dual Token Economic Model of Phoenix Network on Blast L2

Recently, Phoenix Network announced its official launch on Blast L2 and introduced a new Token and economic model, injecting new vitality into the decentralized derivatives track. Phoenix Network started its IDO on May 13 and reached its hard cap in just 15 days, raising 625 ETH with a subscription amount exceeding 2.4 million USD. This article will detail the dual-token economic model of Phoenix Network (Blast L2), including the governance token $PEX and the contribution value token $WIN.

Overview of the Phoenix Network

Phoenix Network is a decentralized derivatives trading platform based on Blast L2, aiming to provide an efficient, secure, and transparent perpetual trading environment to attract more users to participate in the decentralized financial market while offering incentives and value capture. Its dual Token economic model is an important component of the project and has a significant impact on 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. PEX mainly serves as the voting power for platform governance and the main value storage point for various revenues from the protocol derivatives exchange.

PEX Minting and 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. Among them, 33,333 PEX were allocated as a minting tax, and 300,000 PEX were used for IDO distribution and to add initial liquidity. The IDO price was 0.0025 ETH, and the initial listing price was 0.0031 ETH.

The subsequent issuance of PEX can only be minted through bond sales. By selling LP bonds, the treasury holds all the liquidity of the PEX-ETH trading pool. The minting tax of PEX is used for the technical development and maintenance of the protocol, community node user rewards, and development fund.

circulation of PEX

PEX holders can earn staking rewards by staking PEX according to the Rebase cycle, which increases in compound interest in the form of sPEX. Users can also purchase LP bonds by adding PEX-ETH LP liquidity to obtain PEX minted from the treasury.

PEX's destruction and rights

PEX is closely related to the derivatives exchange PbTrade. The treasury serves as the short-term counterparty for all transactions on PbTrade, while PEX acts as the long-term counterparty. In most cases, when traders incur losses, 35% of the profits from the treasury positions are deposited into the treasury as reserves for minting PEX, and 55% is used for repurchasing and burning PEX.

25% of the PbTrade transaction fees will be returned to PEX stakers, giving PEX strong value capture capabilities.

Contribution Value Token WIN

WIN is the protocol contribution value Token of the Phoenix Network, with a theoretical maximum supply of 10 billion. 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 Token minting and issuance increase

WIN is minted by users who stake PEX, and the minting will consume USDB. PEX stakers need to spend an additional 20% of the value of their staked PEX (USDB) to mint WIN Token for high returns. Of the minted WIN, 5% is allocated to the protocol development fund, and 95% is rewarded to the referrer and node users.

WIN redemption and burning

Users can accelerate the release of PEX staking rewards by burning WIN, or redeem WIN for USDB from the USDB treasury at real-time prices. These actions will lead to an increase in WIN prices.

The Role of 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 a core component of its decentralized derivatives trading platform. The two tokens, PEX and WIN, interact within the platform's economy, driving the development and prosperity of the platform together. Through this design, the Phoenix Network achieves economic balance within the protocol, while enhancing the platform's transparency and fairness, protecting the interests and rights of users.