Paal AI (PAAL) tokenomics

The PAAL AI ecosystem is powered by the $PAAL utility token, an ERC-20 token on the Ethereum blockchain. The tokenomics are designed to incentivize long-term holding, participation in the ecosystem, and reward community members through a revenue-sharing model.

Issuance Mechanism and Supply

The PAAL AI token has a Total Supply of 1,000,000,000 (1 Billion) tokens.

• Smart Contract Renunciation: The smart contract for the $PAAL token has been renounced, which is intended to ensure transparency and security by relinquishing control over the contract.
• Transaction Taxes: Notably, there are 0% taxes on both buy and sell transactions of the $PAAL token.
• Buybacks: The ecosystem employs a buyback mechanism where all tokens repurchased are redirected into staking pools. This action is intended to enhance staking rewards and support the long-term value of the token.

Allocation Mechanism

While a detailed token allocation breakdown (e.g., for team, treasury, marketing) is not explicitly provided, the tokenomics structure highlights a focus on community rewards and ecosystem growth through revenue sharing and staking.

• Revenue Allocation: Revenues generated by the Paal ecosystem are transferred to a dedicated account named paalecosystemfund.eth. An impressive 50% of certain earnings are allocated for distribution to stakers, promoting participation and stability.
• Revenue Sources: The revenue streams funding the ecosystem and rewards include:
  • Whitelisted AI solutions used by companies.
  • Advertising and cross-promotion partnerships.
  • A 1% tax from trading (which directly impacts stakers).
  • PaalX trading fees.
  • Future revenue streams like subscription services and product commissions.

Usage and Incentive Mechanism

The $PAAL token serves as a versatile utility token within the Paal AI ecosystem, offering several key uses and incentives for holders:

Locking Mechanism and Unlocking Time

The primary locking mechanism for $PAAL tokens is through the staking pools, which require users to lock their tokens for a set duration to earn rewards.

Staking Pools and Locking Periods

Users can choose from different staking pools, each with a specific locking period and corresponding Annual Percentage Yield (APY) for $PAAL rewards, as well as a share of the ETH rewards:

• Reward Withdrawal: PAAL rewards earned from staking can be withdrawn at any time, regardless of the lock-up period.
• Unlocking Time: The tokens themselves are locked for the duration of the chosen staking pool (14, 28, or 56 days).

Potential Vesting (Retracted Merger)

It is worth noting that a proposal for a token merger with the Artificial Superintelligence Alliance (ASI) was put forth, which included a proposed 180-day vesting period for converted tokens. However, this merger proposal was subsequently retracted based on community feedback, meaning this specific vesting schedule is not currently in effect for the $PAAL token.