XPRT Tokenomics and Utility: Powering the Persistence Ecosystem

Persistence liquid staking

XPRT is the backbone of the Persistence ecosystem. Read below for details regarding the role of the XPRT token within the Persistence ecosystem and dive into the full details of the tokenomics.

The Role of XPRT

XPRT will carry a variety of use cases within the Persistence ecosystem, including governance of the Persistence main-chain, participating in staking to contribute to network security, and its role as a work token.

Governance

XPRT holders will be able to take part in protocol governance by issuing proposals and voting on various factors which will impact the broader Persistence ecosystem.

Staking

As the Persistence chain runs on delegated Proof-of-Stake based Tendermint PBFT consensus engine, staking is integral to ensuring a secure and robust network.

Persistence has onboarded some of the world’s top validators, distributed globally. XPRT token holders will be able to delegate their tokens to our network validators for staking. Stakers will receive rewards in the form of XPRT in return for contributing to the security of the network.

Work Token

As a work token, the economic activity driven both within and outside the ecosystem will drive value for XPRT in the following manner:

Within the ecosystem

  • Modular dApps (e.g. pSTAKE) and dApps built using smart contracts (e.g. borrowing/lending in the future) will leverage the Core-1 chain infrastructure to build use-cases for stkASSETs. This will encourage more transactions (and thus transaction fees) on the chain. XPRT stakers will also benefit from the fees generated on these dApps.
  • IBC ecosystem is envisioned to incorporate thousands of App-chains, all of which need not be interconnected with one another on a 1:1 basis. IBC transactions from app-chains within the Persistence ecosystem will be routed through the Persistence Core-1 chain making the Core-1 chain the IBC hub of the Persistence ecosystem, accruing transaction fees on the Core-1 chain.

Outside the ecosystem

  • IBC-enabled stkASSETs for various PoS chains within the Cosmos ecosystem will be hosted on the Persistence chain.
  • These assets will flow within and outside the Persistence ecosystem through the Core-1 chain, generating further transaction fees.
Persistence and Cosmos ecosystem diagram

XPRT Token Distribution

The XPRT token distribution model and release schedule have been carefully ideated to facilitate the long-term growth of a strong, engaged and vibrant participant ecosystem.

100 million XPRT will be minted at genesis and will be gradually released over the course of 42 months. The distribution is as follows:

Marketing & Growth: 25.6% (25,600,000 XPRT)

  • To be gradually and tactically utilized to increase awareness of Persistence via various marketing activities, facilitate valuable partnerships, institutional adoption, exchange listings etc.

Ecosystem Development & Growth: 19.4% (19,400,000 XPRT)

  • To fund the development of, and accelerate user adoption of, dApps within the Persistence ecosystem. This will include community grants to incentivize external developers to build new DApps on Persistence.

Team: 16% (16,000,000 XPRT)

  • Team tokens will be locked for one year from the time of TGE and gradually unlocked as an incentive to remain committed to the long-term success of the project and to facilitate the continual expansion of the Persistence team.

Seed and Private Sale: 14% (14,000,000 XPRT)

  • Token allocations for larger investors who will be heavily contributing to the success of Persistence in various ways over a long-term period.

Validator Incentivization: 10% (10,000,000 XPRT)

  • Incentive for our top-tier validator ecosystem to continue securing the Persistence network over the long-term.

Validators & Strategic Sale: 10% (10,000,000 XPRT)

  • Token allocation for our earliest investors who helped to financially bootstrap the project and will be demonstrating long-term support and commitment to the project’s success.

Advisors: 4% (4,000,000 XPRT)

  • Incentive for our growing network of advisors to continue their incredible support in various areas, helping to continuously push Persistence to new heights with their own respective areas of expertise and experience.

Public Sale: 1% (1,000,000 XPRT)

  • Designed for the wide distribution of XPRT tokens to facilitate the broad decentralization of the staking and governance power of Persistence, and to initiate the growth of a large supporter base.
XPRT Token Distribution Chart

The initial circulating supply of XPRT will be 9,100,000 (9.1% of the total supply). The circulating supply will gradually increase in-line with the release schedule detailed below.

The public sale will take place at a price close to the private sale price so that those who didn’t get the chance to participate in the private sale can get access to XPRT tokens at a price very close to that of the private sale.

XPRT Token Release Schedule

Unlike with the tokens allocated during the fundraising rounds, there will be no lockup period for XPRT purchased during the public sale. All XPRT tokens sold during the public sale will be unlocked upon distribution.

XPRT Token Release Chart (click the image to enlarge) — Month 0 is March 2021

Marketing & Growth (25,600,000 XPRT)

  • 4,000,000 XPRT will be unlocked at listing followed by 4,000,000 XPRT unlocking every 3 months (beginning from June 2021) until December 2021. 3,600,000 XPRT will be unlocked in March 2022, followed by 1,500,000 XPRT unlocking every 6 months thereafter until March 2024.

Ecosystem Development & Growth (19,400,000 XPRT)

  • 4,000,000 XPRT will be unlocked 1 month after listing (April 2021) followed by 3,000,000 XPRT unlocking every 3 months, beginning from July 2021 until January 2022. During July 2022, 1,600,000 XPRT will be unlocked followed by 1,600,000 XPRT unlocking every 6 months after until January 2024.

Team Members (16,000,000 XPRT)

  • 3,200,000 XPRT will be unlocked 1 year after listing (March 2022) followed by 3,200,000 XPRT unlocking every 3 months until two years after listing (March 2023).

Early Supporters / Investors (25,000,000 XPRT)

  • Seed Sale: 1,600,000 XPRT will be unlocked at listing followed by 1,600,000 XPRT unlocking every 3 months (beginning June 2021) for the first year after listing (until March 2022).
  • Private Sale: 1,500,000 XPRT will be unlocked at listing followed by 1,500,000 XPRT unlocking every 3 months (beginning June 2021) until 9 months after listing (December 2021).
  • Public Sale: 1,000,000 XPRT will be unlocked at listing.
  • Validators & Strategic Sale: 1,000,000 XPRT will be unlocked at listing followed by 1,800,000 XPRT unlocking every 3 months (beginning June 2021) for 15 months after listing (until June 2022).

Validator Incentivization (10,000,000 XPRT)

  • 200,000 XPRT will be unlocked 3 months after listing (June 2021) followed by 200,000 XPRT unlocking every month thereafter until September 2024. Every 6 months after listing, 400,000 XPRT will be unlocked alongside the 200,000 XPRT (total of 600,000 XPRT per 6-monthly unlock) until September 2023.

Advisors (4,000,000 XPRT)

  • 800,000 XPRT will be unlocked 1 year after listing (March 2022) followed by 800,000 XPRT unlocking every 3 months until March 2023.

Staking and XPRT Supply

As with other Tendermint-based chains, the token supply will be inflationary in nature, up to a certain point in the future, to facilitate staking rewards. Inflation will occur at 35% for the initial year followed by a halving in inflation every 2 years with a target bonding (staked token percentage) of 67% of XPRT to secure the network. Assuming a 67% bonding rate, by 2035 XPRT will have reached its maximum supply of ~403,000,000 XPRT.

These lucrative staking rewards incentivize XPRT holders to stake their tokens, thus increasing network security. Due to the inflation halving every two years, early stakers will be rewarded with the best staking yields.

XPRT is the token around which the entire ecosystem is built, thus staking XPRT to secure the chain will result in a great deal of exposure to multiple dApps in the ecosystem for stakers.

More details regarding staking and the benefits for stakers will be outlined in an upcoming article. Stay tuned!

About Persistence

Persistence is a Tendermint-based, specialised Layer-1 network powering an ecosystem of DeFi applications focused on unlocking the liquidity of staked assets.

The Persistence chain facilitates the issuance and deployment of liquid-staked stkASSETs, allowing users to earn staking rewards while participating in DeFi primitives, such as lending/borrowing and liquidity provisioning on DEXs.

Persistence aims to offer a seamless staking and DeFi experience for PoS (Proof-of-Stake) users and enable developers to build innovative applications around stkASSETs.

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