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Pike PIU Program - Part 2b

This is Part 2b of a 3-Part Blog Series

You’re all familiar with points - but have you heard of $PIU?

Today, we’ll be diving deeper into the tokenomics of $PIU, its utility, as well as how the claiming of $PIU will work during the PPP.

If you need a recap on $PIU allocation, be sure to check out part 2A of this 3-Part Blog series.

TLDR:

The supply of $PIU is capped for the period leading up to the Pike Community Presale
Primary utility of $PIU is Whitelist qualification for the Pike Community Presale
$PIU earned from Discord roles will be claimable in batches based on role tiers, not instantly or all at once
$PIU earned from protocol interaction (Supply, Borrow) will be claimable on a daily basis
$PIU will only be emitted and in circulation when claimed

$PIU Supply

As a team, we’re well aware that when tokenizing points - there are a number of factors we need to consider when designing how it’s emitted, the supply and also, how it’s controlled. To better understand and put this in perspective, let’s run through a couple analogies about what the supply and emission schedule can look like throughout the PPP.

Both scenarios are simulated with liberal estimates of both role holders (and allocation claimers), as well as dApp activity over the course of the PPP.

$PIU Emission from Protocol Interaction:

In the following example, the PPP would be run for 31 days and would see the following changes in TVL numbers:

Deposits from $3.5M to $20M
Borrows from $400K to $8M

We feel this is quite a liberal estimate of the deposit and supply numbers at the end of the PPP, however to determine a meaningful cap for $PIU, let’s assume the $20M in deposits and $8M in borrows occur on day 1, and persist until the end of the program. While this is quite ambitious, we would rather overestimate, and hence determine a meaningful $PIU cap.

Duration: 31 days
Total Supply: $20M
Total Borrows: $8M

With deposits resulting in 10 $PIU per day, per dollar, and 20 $PIU for borrows - at the end of the PPP in this scenario, we’re looking at around 11B $PIU emissions, and will serve as a portion of the overall $PIU cap. Keep in mind though, while improbable, with the momentum Pike has, we could simultaneously exceed these numbers, in which case this cap is quite meaningful.

$PIU Emission from Discord Roles:

Now, moving onto the roles which can be obtained within Discord. This is where most of the $PIU is emitted, however the only roles which are permanently accessible are those with high entry costs i.e. NFT roles, and earned roles such as Nads and SpaceWalker from the Monad and Wormhole Discord accordingly. The remaining roles such as Pythian, Floppy, and so on, are only available during cross-community/protocol events such as AMAs, Fireside Chats, Twitter Spaces, competitions, etc.

Since Tier S contains only the “Beta Maxi” role, which has since been closed - this number will not change during the PPP, however roles such as Mad Lads, DeGods, and other NFT collections will most likely grow consistently. As a result, we’ve populated the Number of Role Holders with a liberal projection at the end of the 31 days. If all role holders (at the end of the program) were to claim $PIU, it would result in a total emission of almost 16B $PIU.

One point to note is that not every individual holding a role will claim their allocation. For individuals who obtained roles after the snapshot, $PIU earned will not be claimable until the next PPP event (i.e. after Pike Community Presale).

Also, the role claiming will only go live in batches (e.g. per tier), meaning $PIU will be emitted gradually over the course of the PPP, rather than all at once at the beginning.

Combined with the estimates from the TVL emissions, the cap of $PIU during the PPP will be 27B~. Therefore, 27B represents the supply cap of $PIU for the period leading up to Pike Community Presale.

$PIU Utility and Tier Ranking Explained

Tier Ranking within the PPP is measured on a relative basis (ie. your $PIU holding relative to everyone else’s). There are 4 Tiers within the ranking (Tier 1, 2, 3, General), with Tier 1 being the highest achievable tier.

Tier Ranking within the PPP will correspond to the Whitelist Tiers for the Pike Community Presale. Whitelist Tiers guarantees your allocation and determines your maximum contribution (i.e. how much of the Pike governance token you can effectively buy), as well as the discount on valuation you’ll receive (i.e. how much of the Pike governance token you receive per $1 of contribution).

Holders who obtained Whitelist Tiers must burn $PIU in exchange to participate in the Pike Community Presale. More information regarding the Pike Community Presale will be revealed in a separate blog post.

The burning mechanism creates direct reduction pressure on $PIU supply. Not only does this mechanism maintain balance between supply/demand, but it also ensures sustainability of the PIU Program. In short, $PIU enables short-term speculation opportunities for traders, and it also unlocks long-term utility for holders who wish to participate in the Pike Community Presale.

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