$P Token Overview

Token Supply and Governance Role

Peridot ($P) is the governance and utility token of our cross-chain money market protocol (initially on BNB Chain, with plans for Monad). It has a fixed total supply of 1 billion $P. As a governance token, $P empowers holders to propose and vote on protocol upgrades and parameters, ensuring the community has a say in the platform’s evolution. Beyond governance, $P is integral to the platform’s incentive program users who participate in lending/borrowing are rewarded in $P, aligning user growth with token distribution. This approach follows the model pioneered by Compound’s COMP token, whose launch in 2020 jump-started liquidity mining and massively increased platform usage. By distributing $P to active users, we similarly aim to bootstrap liquidity and reward early adopters while decentralizing protocol ownership.

Tiered Utility and Holder Benefits

A core innovation of $P is its tiered loyalty program, which incentivizes users to hold and actively use the token. Holding or supplying certain percentages of the $P supply unlocks progressively higher tiers of benefits:

Free Tier (< 1% of $P supply): Base benefits including 3 gasless transactions per month (the protocol covers transaction fees up to three times monthly). This tier is open to all $P users with smaller holdings.

Tier 1 (≥ 1% of supply): 10 gasless transactions per month are covered. Users at this tier begin to receive boosted $P rewards on the platform (higher APY on their supplied assets, detailed below) and may qualify for partner token rewards when available (e.g. airdrops from project collaborations).

Tier 2 (≥ 5% of supply): 25 gasless transactions per month are provided. Reward multipliers are higher, granting significantly increased $P earning rates. Tier-2 users gain greater reward sharing from partner tokens and other exclusive perks as they are announced.

Tier 3 (≥ 10% of supply): 100 gasless transactions per month are covered essentially removing transaction fee concerns for active users. These top-tier holders receive the maximum $P reward boosts and partner token distributions, along with future privileges like the highest fee discounts on advanced DeFi instruments.

These tiered benefits serve as powerful incentives for users to hold onto $P rather than immediately sell, fostering loyalty. Research in tokenomics highlights that offering exclusive services, discounts, or membership privileges to token holders enhances a token’s utility and encourages active engagement. Indeed, many successful platforms use similar strategies for example, Binance’s BNB token grants holders trading fee discounts, access to token airdrops, and VIP perks on the exchange. By granting gasless transactions and higher yields to $P holders, Peridot creates a tangible utility and savings for loyal users, which increases the overall value proposition of holding $P. Additionally, clear use cases and holding incentives like these are crucial for preventing excessive token sell-offs post-reward; experts note that tokens with well-defined utility and holder rewards tend to maintain stronger community support and price stability. In the future, we plan to expand $P’s use case even further for instance, discounted fees on derivative trading (e.g. perpetual swaps) when using $P as payment, priority access to new features, and other exclusive services for token holders. All of these utilities place $P at the forefront of the user experience, ensuring that holding the token confers meaningful advantages in the ecosystem.

Incentive Mechanism and Emission Schedule

Rewarding users with $P for lending and borrowing not only benefits users but also drives platform growth. Following the model of Compound and others, our protocol will distribute $P to suppliers and borrowers of assets as an additional APY (on top of interest earnings). This kind of liquidity mining has been shown to dramatically increase user participation for example, Compound’s distribution of COMP tokens (2,880 COMP per day) made it “extremely popular and significantly increased the assets lent and borrowed on Compound”. We anticipate a similar network effect: users earn $P when they supply or borrow assets, which in turn attracts more liquidity. To ensure fairness, rewards will be split equally between suppliers and borrowers in each market (a 50/50 allocation), mirroring Compound’s approach. This encourages both lending and borrowing activity, improving overall market utilization.

Emission Schedule: Peridot’s token emission is designed for long-term sustainability. We modeled our schedule on Compound’s linear distribution over multiple years. Specifically, a fixed amount of $P will be released per block (or per day) such that a substantial portion of the supply (for example, ~40-50%) is distributed over the first few years (e.g. 4–5 years), with the remainder allocated to community reserves, team, and future incentives. A linear release of tokens over time helps avoid sudden supply shocks that could destabilize the token’s value. Research indicates that projects using gradual, predictable token release schedules experience reduced volatility and healthier long-term growth. We are open to refining the exact schedule whether following a strict linear vesting as COMP did, or a slightly adjusted curve (for instance, front-loading some rewards to bootstrap early adoption and then tapering down). The guiding principle is to balance attractiveness with longevity: early rewards should be high enough to incentivize users to join and hold $P, but not so high that the emission is unsustainable. (One analysis cautions that overly generous rewards can rapidly deplete the token pool or inflate the supply, whereas insufficient rewards fail to attract users; thus the emission rate must align with long-term protocol goals and market conditions.)

Cross-Chain Distribution: Because Peridot will operate on both BNB Chain and Monad (with very different block speeds), the per-block emission will be calibrated per network. BNB Chain has ~3 second blocks, while Monad’s average block time is ~0.4 seconds (approx. 7.5× faster). To maintain a consistent daily token emission, the amount of $P distributed per block on Monad will be set lower than on BNB. For example, if the target is about 100,000 $P per day on each chain, this translates to roughly ~3.5 $P per block on BNB (with ~28,800 blocks/day) versus ~0.46 $P per block on Monad (with ~216,000 blocks/day). This ensures that users on both chains have comparable earning opportunities without excessively draining the token supply on the faster chain. We will monitor the usage on each chain and can adjust the allocation if needed e.g. if one chain’s markets see significantly higher demand, a greater share of daily $P could be directed there (within reason). The key is to keep the emissions fair and proportional to activity and to avoid arbitrage situations where one network’s $P rewards vastly outpace the other’s on a per-day basis.

Allocation by Asset Type and Market

To attract a diverse and balanced liquidity pool, $P reward emissions will be allocated across asset markets based on asset type and strategic importance. Our money market supports various assets categorized broadly as: stablecoins (e.g. USDC, USDT, BUSD), relatively safe blue-chips (e.g. WETH, WBTC), and more volatile or new assets (e.g. $P itself, BNB, MON, etc.). We plan to distribute incentive weightings to these categories in a way that maximizes growth while managing risk:

Stablecoin Markets: Highest reward weight (e.g. ~50% of daily $P rewards). Stablecoins are crucial for liquidity and attract substantial capital due to low volatility. Incentivizing stablecoin lending/borrowing can significantly boost Total Value Locked indeed, Aave found that allocating most of its liquidity mining rewards to stablecoin pools led to a “substantial increase in TVL”. By offering strong $P rewards on stablecoin deposits/loans, we encourage large liquidity providers to use our platform for steady yields.

Major Crypto Assets (BTC, ETH, etc.): Moderate reward weight (e.g. ~30% of $P rewards). These assets are core to the crypto ecosystem and relatively safer (lower volatility than altcoins). Providing competitive $P incentives on WBTC, WETH, and similar markets ensures our platform is attractive for users holding blue-chip cryptocurrencies. It supports deep liquidity in these markets, which are often in high demand.

Volatile/Long-Tail Assets ($P, BNB, MON, others): Lower reward weight (e.g. ~20% of rewards). We will allocate a portion of $P emissions to riskier asset markets including the $P token market itself and native chain tokens like BNB and MON. This encourages users to supply and borrow these assets on our platform rather than elsewhere, supporting a broader range of markets. However, to protect the protocol, these assets typically have higher interest rates and lower collateral factors, so we balance their incentives accordingly. By keeping the reward share for volatile assets smaller, we mitigate excessive exposure to risky assets while still giving enthusiasts a reason to participate. (If our platform introduces a native stablecoin or other special assets in future, we could allocate a share of rewards there as well for example, Venus protocol on BSC directs 30% of its rewards to stablecoin minters, highlighting how incentives can be tailored to specific use cases.)

Within each asset market, $P distribution can also be dynamically adjusted based on market demand and performance. Initially, a fixed allocation by category provides clarity. Over time, governance can vote to re-weight the rewards to promote desired behaviors (for instance, if a particular stablecoin market needs more liquidity, its reward share could be increased). The distribution between suppliers and borrowers will remain roughly equal in each market to maintain equilibrium. This balanced incentive structure ensures that all types of users (conservative stablecoin lenders, cryptoasset holders, and even speculative altcoin users) find value in the platform’s rewards, while the protocol grows in a stable and diversified manner.

$P Reward APY and Tier Multipliers

Base APY for $P Rewards: Users of the platform (even in the free tier) will earn a baseline APY paid in $P for supplying or borrowing assets. Given current market conditions, we aim for this base $P APY to be competitive but reasonable for example, on the order of magnitude of other liquidity mining programs (which often ranges in the low tens of percent annually for stablecoin deposits). As context, our platform’s natural APY from interest is ~12.5% for suppliers and ~13.5% for borrowers on average (these figures fluctuate with demand). The $P incentives will be layered on top of those interest rates. For instance, a stablecoin supplier might earn 12% from interest plus an additional say 8-10% in $P rewards at the free tier, yielding ~20% total an attractive boost.

Tiered APY Boosts: To reward larger or more dedicated holders, the $P reward APY will increase exponentially with each tier. This means higher-tier users earn significantly more $P for the same activity, reflecting their greater commitment to the ecosystem. For example, if a free-tier user earns a 10% APY in $P, a Tier-1 user might earn roughly 2× that rate (~20%), a Tier-2 user perhaps 4× (~40%), and a Tier-3 user up to 8× (~80% APY). These multipliers are illustrative and would be fine-tuned based on token emission limits and economic modeling but the general principle is that each tier perhaps doubles the reward rate of the previous. Such an exponential boost makes higher tiers very attractive (especially early on), compensating large holders with outsized rewards. Crucially, we will calibrate these rates to avoid over-inflation. An 80% APY in $P for top-tier might be viable initially when the token launches (to draw in heavy participation), but if it proves too high in practice, governance could vote to adjust tier multipliers to more sustainable levels. It’s a delicate balance: high enough APY to entice users to stake and hold $P rather than sell, but not so high that the token emission outpaces growth. Industry analyses warn that overly generous incentive rates can harm a project by depleting reserves or causing rapid sell-pressure, so our model will be continuously reviewed to align with long-term sustainability.

Sustainability Measures: To support a lasting rewards program, $P’s tokenomics include measures to encourage holding and reinvestment. As discussed, the tier perks (gasless transactions, fee discounts, partner airdrops) all give ongoing value to holding $P, reducing users’ desire to immediately liquidate their earned tokens. Moreover, by distributing tokens over several years and potentially introducing vesting or lock-up periods for certain rewards, we ensure the circulating supply grows gradually. The intent is that as the platform matures and fee revenue increases, $P may also gain value from buyback-and-burn or revenue-sharing mechanisms (to be explored via governance). These could further support the token’s price, making the APY attractive in dollar terms even if the percentage rates taper down over time. Our model is inspired by successes like Compound’s four-year liquidity mining and Aave’s targeted reward programs, which have shown that thoughtfully calibrated incentives can fuel growth without compromising the protocol. By following a scientific, data-driven approach citing proven tokenomic practices and adjusting parameters with community input Peridot’s $P aims to offer immediate attractive yields for participants and a robust, long-term aligned incentive structure for sustainable protocol prosperity.