> For the complete documentation index, see [llms.txt](https://phemex.gitbook.io/phemex-web3-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://phemex.gitbook.io/phemex-web3-whitepaper/features/phemex-token/tokenomics.md).

# Tokenomics

Total supply of 1 billion [Phemex Tokens](https://phemex.com/web3/pt-benefits) will be issued as ERC20 tokens on the Ethereum blockchain. They represent ownership stake in the Phemex platform and grant various utility benefits.

<table data-header-hidden><thead><tr><th width="235"></th><th width="132"></th><th width="166"></th><th></th></tr></thead><tbody><tr><td><strong>Allocation</strong></td><td><strong>Percentage</strong></td><td><strong>Tokens</strong></td><td><strong>Schedule</strong></td></tr><tr><td>xPT Pre-mining</td><td>10%</td><td>100,000,000</td><td>25% unlock at TGE, remaining 75% distributed weekly for three weeks after TGE. Unclaimed supply added to DAO Treasury.</td></tr><tr><td>Collaborator Program</td><td>5%</td><td>50,000,000</td><td>50% unlock at TGE, 6-month vesting for remainder. Unclaimed supply added to DAO Treasury after TGE.</td></tr><tr><td>Strategic Investors</td><td>20%</td><td>200,000,000</td><td>2 years cliff, then 5 year quarterly vesting</td></tr><tr><td>Ecosystem Fund (DAO Treasury)</td><td>15%</td><td>150,000,000</td><td>Reserved for DAO Treasury</td></tr><tr><td>Trading Rewards <br>(DAO Treasury)</td><td>12.5%</td><td>125,000,000</td><td>5 year linear distribution after TGE</td></tr><tr><td>Liquidity Provider Rewards (DAO Treasury)</td><td>12.5%</td><td>125,000,000</td><td>5 million tokens unlock at TGE for lending protocol insurance pool.  Remaining 120 million  tokens subject to 5 year linear distribution</td></tr><tr><td>Operations &#x26; Marketing</td><td>10%</td><td>100,000,000</td><td>20% unlock at TGE, 5-year monthly vesting thereafter</td></tr><tr><td>Core Builders</td><td>15%</td><td>150,000,000</td><td>1 year cliff, then 4 year monthly vesting </td></tr></tbody></table>

The Phemex Token may take three forms, each with distinguishing characteristics. A brief description and breakdown can be found below, with further expansion in subsequent sections.&#x20;

***xPT*** - Metadata on the Phemex Soul Pass; automatic 1:1 conversion to PT during TGE&#x20;

***PT*** - On-chain, transferable ERC20 platform token

***vePT*** - On-chain, non-transferable governance token on the Optimism (OP) network

| **Token** | **Summary**                  | **Usability**                                                           | **Relationship**                                                              | **Differences**                              | **Total Supply**                    |
| --------- | ---------------------------- | ----------------------------------------------------------------------- | ----------------------------------------------------------------------------- | -------------------------------------------- | ----------------------------------- |
| xPT       | Pre-mint token               | Convert to PT on 1:1 basis during TGE                                   | Automatically converts to PT                                                  | Metadata on Phemex Soul Pass                 | Converted to PT at TGE in Q3 2023   |
| PT        | Transferable utility token   | Staking, trading, liquidity provision                                   | 10% of supply converted from xPT, can be staked for vePT                      | ERC20 token, transferable on the open market | 1 Billion                           |
| vePT      | Vote escrow governance token | DAO governance & voting, staking yield, trading rewards, other benefits | Obtained by staking PT for a specific time (minimum 1 month, maximum 2 years) | ERC20 token, non-transferable                | Based on amount of staked PT tokens |

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