Phoenix Network log in to Blast L2, launching a new economic model

Phoenix Network recently announced its official log in to Blast L2, launching a brand new token and economic model to inject new vitality into the decentralized derivatives track. The project started its IDO on May 13 and reached its hard cap within 15 days, raising 625 ETH, with subscription amounts exceeding 2.4 million USD. This enthusiastic market response has sparked curiosity about the appeal of Phoenix Network.

Phoenix Network is a decentralized derivatives trading platform based on Blast L2, aimed at providing an efficient, secure, and transparent perpetual trading environment. Its core feature is a dual-token economic model, including the governance token PEX and the contribution value token WIN.

Governance Token PEX

PEX is the governance token of the Phoenix Network, with a maximum supply of 10 million. It not only serves as the voting right for platform governance but also acts as the main value storage point for various revenues of the protocol derivatives exchange. The minting and issuance of PEX are closely related to the development history of the Phoenix Network.

The issuance of PEX began with the genesis minting, during which 333,333 PEX were issued through an IDO. Among them, 33,333 were allocated as minting tax, and 300,000 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.

Subsequent issuance of PEX can only be minted through bond sales. 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 funds.

PEX holders can earn rewards through staking, increasing their returns in the form of sPEX. Users can also purchase LP bonds by adding PEX-ETH LP liquidity to receive PEX minted from the treasury.

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

In addition to staking rewards, PEX stakers can also receive 25% of PbTrade transaction fees as additional income. This design enhances PEX's value capture capability, potentially placing it in a deflationary state over the long term.

Contribution Value Token WIN

WIN is the protocol contribution token of the Phoenix Network, with a theoretical maximum supply of 10 billion pieces. It is mainly used to reward those who contribute to the growth of protocol users, and can also serve as a burning mechanism to accelerate the release of WIN staking rewards.

During the genesis phase of WIN, 1 million units will be issued for specific stage airdrops and rewards. In addition, other WIN will be minted by the protocol. The protocol has established an initial treasury of 10,000 USDB for WIN.

WIN is minted by users who stake PEX, and the minting process consumes USDB. PEX stakers must spend an additional 20% of the value of the staked PEX (in USDB) to mint WIN tokens in order to receive a high yield with 0.2% compound interest every 8 hours. Of the minted WIN, 5% is allocated as a protocol development fund, and 95% is rewarded to the inviter and node users.

The price of WIN is influenced by multiple factors, including the total value of the USDB vault and the circulation of WIN. Whether it's minting, burning, or redeeming WIN, it will lead to an increase in WIN price, forming a unidirectional continuous upward model.

Advantages of the Dual-Currency Economic Model

The dual-token economic model of the Phoenix Network plays an important role in the platform's development:

1. Inject funds and liquidity into the protocol: The minting and circulation of PEX and WIN bring more funds and liquidity to the Phoenix treasury and vault.

2. Maintain platform stability and balance: WIN's reward mechanism and the destruction mechanism that accelerates the release of PEX staking yields promote a positive cycle of the protocol.

3. Improve transparency and fairness: The circulation of PEX and WIN production is entirely executed on the smart contract chain, ensuring fairness and justice.

The dual-token economic model of the Phoenix Network is a core component of its decentralized derivatives trading platform. The interaction between the two tokens, PEX and WIN, will jointly promote the development and prosperity of the platform while protecting the interests and rights of users.