Revised $P Tokenomics

Gpike friends - we’re back with a much anticipated adjustment to Pike’s tokenomics!

We appreciate all the feedback we’ve received, however Pike’s tokenomics seems to be a hotly debated topic as of this week - so we’ve decided to do something about it, and align the $P token with our community investors at large.

tldr:

• Core Contributors (Team) have become their own category - separate from Advisors

• Core Contributors (Team) schedule have changed to:

  • Core Contributors receive 10% of total supply

  • 0% unlock at TGE

  • 12 month cliff/lock before vesting begins

  • 100% vests over 36 months

• Advisor schedule have changed to:

  • Advisors receive 5% of total supply

  • 25% unlock at TGE

  • 12 month cliff/lock before vesting begins

  • Remaining 75% vests over 12 months

• Tokenomics Spreadsheet can be found at: https://docs.google.com/spreadsheets/d/1Oe-tEEXTrHwNQUzkqaO8T-xB0zecpgXS57hkeomqL8k/edit?usp=sharing

• 10.35% from the 22% Foundation Treasury was sold during the Pike Community Presale. The remaining 11.65% will be reserved for future capital formation events.

The Presale

Organizing the presale was quite an involved task for the Pike team and presented a number of challenges from both the appetite of retail individuals due to market momentum, but also regarding the logistics and execution of the entire event.

Furthermore, there was also quite a bit of development effort required due to the mechanics of the presale, with it having been done in-house, and tied in with the Pike PIU Program (PPP).

Despite it being far more demanding on both the team and community than going down the traditional route of institutional fundraising, we would not change anything whatsoever if given the chance to do it over.

We believe that this Presale was the best way to grow Pike by providing the community an opportunity to take part within the ownership structure at an early stage - an opportunity that is rarely, if ever, available to retail individuals.

Furthermore, now that Presale participants are literally upon the cap table of Pike, we must align our decision making with the community, even before $P governance goes live.

The Change in Tokenomics

Of course, while successful, the Presale was not free from hiccups, issues or scrutiny. The largest concern community members had was regarding the vesting schedule, and specifically the Core Contributors & Advisor section. For this, we opted for a generally shorter schedule due to the 18 months that the team has already spent working on the protocol, and the added capital flexibility during an uncertain period within the market due to both the in-industry, and macro environment.

We had, of course, deliberately prioritized the vesting schedule for Presale participants, with them receiving the largest unlock, with the shortest cliff and vesting schedule (50% at TGE, 3 month cliff and 6 month vesting i.e. 100% unlock by Month 9). We were also able to sell 10.35% of the 22% Foundation Treasury allocation, and the remaining 11.65% will be reserved for future capital formation events.

As we’ve stated however, we are opting for a community-first approach across the board. Whether it be protocol design, features to implement, UI and UX to rework, partnerships, or tokenomics. Since this was the most significant concern, we have reworked the tokenomics regarding the team allocation to reflect the values and opinions of our most valued stakeholder - the community, and reinforce our long term vision and alignment as a team.

As a result, we’re making the following changes to the tokenomics:

• Total vesting schedule is extended from 43 months to 48 months

• Core Contributor & Advisors separated into 2 separate categories

  • Rather than being a combined 15%:

    • Core Contributors receive 10%

    • Advisors receiving the remaining 5%

• Core Contributors vesting has changed:

  • 25% at TGE -> 0% at TGE

  • 6 Month Cliff/Lock -> 12 Month Cliff/Lock

  • 6 Month Vest -> 36 Month Vest

• Advisor vesting has changed:

  • 25% at TGE -> 25% at TGE (unchanged)

  • 6 Month Cliff/Lock -> 12 Month Cliff/Lock

  • 6 Month Vest -> 12 Month Vest

The full spreadsheet that details the unlock schedule and tokenomics can be found at the following link:

Conclusion

As always, please provide your thoughts and suggestions on Twitter or directly within our Discord accordingly - we welcome all input as it’s only by listening to the community can we develop into a competitive protocol that has the potential to redefine DeFi as we currently know it.

Users and community members are also always welcome to engage with the team directly within our weekly office hours - the next one will be taking place on April 1st, and the subject will be Pike’s tokenomics!

About Pike:

Pike is a Universal Liquidity Protocol; it is designed to unleash utility for native assets by aggregating liquidity across blockchain networks.

Pike’s vision is to become a universal liquidity layer that enables frictionless movement and accessibility of native assets across ecosystems. Pike is built on top of Wormhole’s Cross-Chain Data Messaging and Circle’s Cross-Chain Transfer Protocol (CCTP), and utilizes Pyth Network’s Price Feeds.

One fundamental primitive of Pike is to enable users to supply native assets on source chains and borrow native assets destination chains without interacting with cross-chain bridges and handling wrapped assets.

Learn more at: https://www.pike.finance/

Join the Discord at: https://discord.gg/pikefinance