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PUBLC's tokenomics is the set of rules and structure that maintains PUBLC's economy, creating a mechanism that rewards all of PUBLC's ecosystem and have them earn from the platform's revenue.
- Supply: 100B PUBLX tokens were minted and placed in the Token Reserve.
- Distribution: PUBLX tokens are gradually distributed to PUBLC's ecosystem based on the usage of the platform.
- Utility: The PUBLX token acts as the sole payment settlement method for PUBLC's business services which are priced in USD.
- Demand: The cash USD coming in from advertisers/businesses is converted to a stablecoin USD and converted automatically to PUBLX via a liquidity pool at market price.
- Deflationary Impact: The PUBLX converted from the USD payments is paid to the PUBLX Token Reserve which takes those tokens out of circulation and reduces available PUBLX market supply.
PUBLX total token supply is 100B PUBLX tokens. On the first day when the PUBLX token was launched 100B tokens were minted on the deployment of the token contract and were placed in the Token Reserve, a smart contract on Ethereum. No more PUBLX tokens could ever be minted and 0 tokens were pre-allocated or pre-sold to the team, investors or anyone else.
The only way the PUBLX tokens are released to circulation is as rewards distributed by the Token Reserve to PUBLC's ecosystem for the value they add to the platform. The triggering mechanism that releases the tokens are valid clicks on content on the platform, which reward the relevant beneficiaries. PUBLC Ecosystem Beneficiaries:
Click Reward: On every valid click on content on PUBLC a certain amount of PUBLX is released to circulation based on the split above to the relevant beneficiaries. The amount of PUBLX distributed per click is calculated based on an exponentially decreasing function that factors in the amount of PUBLX there are in the circulation at the moment of the click and the amount of tokens that remain in the Token Reserve. The Click Reward started from 100 PUBLX per click on the very first click and it gradually decreases as the PUBLX supply in circulation increases. Eventually the Click Reward will trends to ~0 PUBLX. The more PUBLX distributed, the less PUBLX are distributed per click.
Click Reward Formula: 100*e^(-m*(circulation/reserve)) [with m=5^(reserve/100B)]
The logic behind the Click Reward mechanism:
- Tokens distributed as a factor of PUBLC platform usage: One of the core business principals of any online content platform is that its value is measured by its usage by users, the more users there are on the platform the more valuable the platform is to businesses and advertisers. In order to maintain a healthy balance between PUBLX token supply and demand, the triggering for distribution of the PUBLX tokens is the usage of the PUBLC platform, thus distributing more PUBLX as platform's value grows.
- Directly rewarding the relevant beneficiaries: The Click Reward mechanism makes sure that the ones creating the most value are the ones rewarded the most. Content creators are rewarded for the amount of times users clicked on their content and consumed their content, celebrities are rewarded for their popularity, etc..
- Incentivizing early adopters: As the Click Reward decreases as the platform grows it means that the PUBLC ecosystem participants who would join PUBLC early would earn the most PUBLX as at the beginning there will be the highest distribution of PUBLX per click.
- High reward ratio per user: As the PUBLX distribution mechanism is relative to the usage of the platform it means that even the early stages of growth the value of the rewards given to the ecosystem will be relatively high as there would be more PUBLX distributed per click to users and less total PUBLX in circulation. As the platform grows there will be less PUBLX distributed per click and more PUBLX in circulation, but there will be more demand from businesses and advertisers buying PUBLX to pay for PUBLC's business services.
All of PUBLC’s business services such as: advertising, promoted content, e-commerce, and more, are settled internally in PUBLX tokens.
However, the services are priced and paid with cash USD using traditional payment methods as credit cards, which gives businesses clarity of cost of services and ease of use.
The cash USD coming in from businesses and advertisers is converted to stablecoin USD and automatically buys PUBLX tokens from circulation via a liquidity pool, at the PUBLX/USD market rate. The PUBLX received from the conversion is paid to the Token Reserve(*), which results to taking those PUBLX tokens out of circulation and creating deflation.
*80% of the PUBLX converted is paid to the Token Reserve and 20% is paid to the PUBLC Foundation and PUBLC Developers as their fees from the platform.
Contrary to the traditional Web2 model of having all the platform's revenue go to the company developing the platform, on PUBLC the platform's revenue is designed to benefit its entire ecosystem. This happens by having all the platform's revenue be converted to PUBLX tokens and having those PUBLX tokens paid to the Token Reserve and be released from circulation.
As all of the payment settlement for services is done with PUBLX, this means that all the revenue coming in to the platform buys PUBLX from circulation. As all of the PUBLX token supply was given to PUBLC’s ecosystem in the first place this creates a mechanism of sharing PUBLC's revenue with everyone, enabling the token holders to exchange their PUBLX for the USD in the liquidity pool.
Having the payment for services paid to the Token Reserve creates a mechanism that removes those tokens out of circulation and creates deflation. This deflationary effect decreases the supply of tokens in circulation which increases the value of remaining tokens in circulation, benefiting all PUBLX tokens holders.
PUBLC tokenomics is designed to withstand even the extreme scenarios, enabling the system to self-balance itself.
Extreme increase in PUBLX token price: This would increase the earnings of all of PUBLC’s ecosystem participants in a USD value, further incentivizing them to earn more PUBLX. Meaning, creators, users and celebrities will be incentivized to share more of their PUBLC content and pages, which will earn them more PUBLX tokens. This increase in traffic and usage of the platform will in turn increase the supply of PUBLX, which could result in taming the PUBLX price increase.
Extreme decrease in PUBLX token price: As PUBLC's business services are priced in USD, a decrease in PUBLX price will not change the amount of USD coming in to the platform by advertisers and businesses. However, the lower PUBLX price will cause more PUBLX tokens to be to be exchanged by advertisers for the same USD coming in, which will result in more PUBLX paid back to the Token Reserve, thus accelerating the deflationary impact that reduces supply in circulation which will strengthen the PUBLX token price.