Token economics, or "tokenomics", are one of the defining aspects of a DeFi project. Solid tokenomics create the foundation for a team and collective community to build something meaningful and timeless.
To understand where we are going, it is often helpful to know where we came from. Our v1 Probably Nothing token (PN), had simple "meme coin" tokenomics whereby holders paid a transaction fee, typically referred to as a "tax", to buy or sell the token. In this case it was 12% each leg or 24% round trip. Through the ERC-20 contract, this tax was automatically deposited into a secondary wallet, referred to as the "marketing wallet." The funds collected in the marketing wallet were used in accordance with the original team's intent, to grow the project. The benefit of the tax as it was coded in v1 was a "reflection," whereby a part of the transaction fee distributed back to holders based on percent of total ownership, pro-rata.
As a token designed without utility, no thought was given to what allocations should be made to adequately account for growth opportunities. These opportunities include integrations with other projects or products, the requirements for listing on centralized exchanges, as well as promotion by high profile industry members. Most importantly, how to give value back to the community (aside from "reflections") was not baked in.
Creating the Probably Nothing v2 tokenomics was an exercise that lasted for several months. We worked internally as a project team while consulting trusted advisors to help guide these conversations, creating a path to set Probably Nothing up for long-term future success. We are proud of where we landed and also want to be mindful of the community from which the next chapter of Probably Nothing is literally born.
Balancing the tokenomics was one of our primary initiatives as a team, something we spent many hours crafting, debating, and refining. We have long-term plans to build something real with each and every one of you who chose to take this journey with us. This required us to think differently about what Probably Nothing is today and what it could become tomorrow.
Much of what we are doing and building we can share with you right now. There are still aspects of the tokenomics tied to "Product Ø" we cannot fully reveal, beyond it being a mobile app which solves a major problem for people in the crypto space. For now, please understand that Product Ø will reward users as well as holders for engaging with the app and the Probably Nothing ecosystem.
The following is a detailed breakdown of Probably Nothing's v2 tokenomics.