PIP-26 Rewards and Parameters

Proposal Overview

This proposal defines the finalized reward, subsidy, and fee parameters for Panther Protocol’s live production environment. It integrates community input from the previous discussion phase and formalizes specific values for token pools, reward mechanics, and protocol incentives. The goal is to ensure sustainable growth, incentivize participation, and maintain a balanced protocol economy through carefully calibrated token allocations and reward distributions.

Background

Panther Protocol incentivizes ecosystem participants (users, miners, relayers, and contributors) through a mix of $ZKP and Panther Reward Points (PRP). Previous PIPs, including PIP-9 (Advanced Staking), introduced foundational mechanisms but required refinement to align with evolving conditions. PIP-26 establishes clear operational parameters for:

• Token pools and initial reserves
• Reward structures for onboarding, miners, and user deposits
• Protocol fees and subsidy logic
• Minimum thresholds for sustainable operations

Proposed Parameters

1. Token Pools and Council Configuration

Description	Value
ZKP amount (initially) reserved for donations (Subsidy Pool)	1,000,000 $ZKP
ZKP amount (initially) added to the PRP AMM liquidity	100,000 $ZKP
POL amount (initially) deposited for Paymaster with EntryPoint	1,000 POL
Base ZKP Reserves pool (zkpreserveController contract)	TBC PIP-28
ZKP amount releasable into PRP AMM per block	TBC PIP-28

2. Fees

Description	Value
Fee (in $ZKP) for KYC attestation	100 $ZKP
Fee (in $ZKP) for KYT attestation	25 $ZKP
Protocol Fee (%) on withdrawal	0.30%
Treasury share of protocol fees (%)	50%

3. Rewards (in $ZKP)

Description	Value
Reward to miner per UTXO mined	0.5 $ZKP

4. Rewards Vouchers (in PRP)

Description	Value
PRP rewards for onboarding (one-time per user)	1,000 PRP

5. Recharge AMM (UI multi-call functions)

Action	Reward (PRP)
Release ZKP to AMM	50 PRP
Split protocol fee (PRP AMM + Treasury)	50 PRP
Swap protocol fees	100 PRP
Claim Paymaster debts	100 PRP

6. Subsidy (in $ZKP)

Transaction Type	Subsidy
Account activation	200 $ZKP
Account renewal	0
Voucher claim	0
PRP conversion	0
Internal transfer	0
Deposit	0
Withdraw	0
Zswap	0
Gas	0

7. Minimum Cap to Trigger Rewards

Action	Threshold
Protocol fee split to PRP AMM + Treasury	1,000 $ZKP
Swapping protocol fees	50 POL
zkpreserveController release to AMM	20,000 $ZKP
Claiming Paymaster debt	10 (native)

8. User Rewards – Deposited Assets

• 10% APY on deposited assets (in $ZKP or supported assets), distributed monthly.
• Rewards are paid in PRP, benchmarked against $ZKP through the internal AMM.

Funding

Rewards will be sourced from the 450M $ZKP protocol rewards allocation.

Next Steps

• Voting: PIP-26 will be published on Snapshot for a 3-day vote. Voting eligibility per PIP-7.

Additional Considerations

• Reward distribution must remain aligned with decentralization and protocol sustainability.
• POL, $ZKP, and PRP market dynamics will be monitored for potential future adjustments.
• Thresholds and subsidy amounts can be rebalanced via later PIPs based on adoption and usage data.