PAN Token Economics

Panvala’s matching funds don’t come from a foundation or wealthy benefactors. Participating in Panvala allows communities to create their own matching funds. Panvala’s economics are modeled on Bitcoin, which funds the network using inflationary block rewards. When you hold BTC, you’re opting into a system where you know your holdings will be diluted up to the maximum supply of 21 million BTC to fund block rewards for miners. Similarly, Panvala’s stakers have opted into a system where they will be diluted up to a maximum supply of 100 million PAN, and the Panvala League’s communities allocate that inflation themselves.

There are three portions of the token supply to keep in mind:

  • The circulating supply consists of the tokens that have already been allocated (48,581,501 PAN as of November 1).
  • The decaying supply consists of the tokens that are locked and released with a half-life of four years, the same half-life as Bitcoin uses (41,418,499 PAN as of November 1).
  • The reserved supply consists of 10 million PAN that the token holders can allocate as needed. This is intended for exceptional opportunities to expand Panvala that cannot be achieved with the quarterly inflation. (10,000,000 PAN as of November 1)