Summary

This PIP proposes transitioning PRTC tokenomics from buyback & burn to a buyback & make model using a Balancer 80:20 PRTC/ETH pool to perpetually grow liquidity.

Abstract

Instead of burning bought back PRTC, protocol revenue will be used to provide liquidity to a weighted Balancer pool. This creates a flywheel effect that compounds value and liquidity.

Motivation

• Creates perpetual buy pressure and liquidity growth tied to revenue
• Avoids drawbacks of buyback/burn like limited growth
• Improves trading environment - pricing, slippage, liquidity
• Aligns incentives between users, stakers, and protocol

Specification

• 80/20 weighted Balancer pool with PRTC/ETH
• Protocol revenue used for PRTC buyback
• Bought back PRTC added to Balancer pool instead of burned
• Pool parameters can be adjusted through governance

Implementation

• Smart contracts to integrate Balancer pool and direct revenue
• Estimated 1 month development timeline
• Core dev team to execute

Licensing

MIT License

Supporting Information:

• Mirror Article
• RFF (Commonwealth