Discussion for PIP-1: PTK Token Design

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The PTK Token

The PTK token is the governance and rewards token of the Protekt Protocol. It will be used to stake for assuming protocol liability, make governance decisions, receive rewards from protocol fees, provided as protocol incentives, and used to fund grants and audit reports for DeFi protocols that are covered by Protekt.

PKT Token Supply

Upon launch, 100 million (100,000,000) PTK tokens will be minted. The supply will not be frozen initially until the community votes on the mechanism to freeze or alter supply. For instance, minting more tokens might remain to cover large losses in insured protocols, if the Protekt community votes it in.

The majority of the PTK tokens will be dispersed to the community that contribute work and capital to grow the protocol.

Supply Percentages

• 60% - Community (Work & Capital)
• 20% - Team Members (with 4 year vesting)
• 10% - Partners & Advisors (with 4 year vesting)
• 10% - Investors (if applicable)

Earning PTK Tokens

Inspired by Ethereum, Compound, and Uniswap, Protekt seeks to reward early contributors to the protocol and its mission to make DeFi safer for everyone. Contributors of capital (liquidity mining) and their work (completing tasks, documentation, development, translations, etc.) will earn a stake in the protocol token, PTK, and can participate in governance, staking, and administration of the protocol.

Reward Phases

Every Wednesday, PTK tokens will be made claimable to those providing capital or work to the protocol and will be able to be collected through the PTK Rewards app.

When the 1st phase is started, 0.1% of PTK will be issued to those providing work to the protocol each week. Liquidity mining will not be active in the 1st phase.

Visit the Weekly Tasks Page to see the first tasks to contribute.

Contributing Work

Tasks will be published weekly and anyone in the community is able to pick them up and complete them. Once a task is complete, open a PR on this repo for the work that was done, which will be discussed there by the community. After discussion and any iterations, if the PR is merged in, the author will be sent PTK tokens on the following Wednesday.

Examples of Work include:

• Document major DeFi hacks & exploits for the community on the Resources Page.
• Complete audits and testing on DeFi projects that Protekt covers
• Moderate and grow community forums and discussion on DeFi safety
• Set up or build community tools to support Protekt or DeFi safety more broadly
• Write code or content to support Protekt or DeFi safety more broadly
• Translate documentation to other languages

Contributing Capital

Every Wednesday, we'll run a script to get the proportion of capital in each Protekt pool and the amount of blocks that it's been present. Each staker is rewarded for the amount of capital they've staked per block. This program is based off how Balancer administers their rewards program.

Note that liquidity mining is not yet active.