Phoenix Network Launches New Economic Model on Blast L2

Phoenix Network recently announced its launch on the Blast L2 network and introduced a new token and economic model, injecting new vitality into the decentralized derivatives market. The project's IDO began on May 13 and reached a hard cap of 625 ETH in just 15 days, raising over 2.4 million USD, demonstrating strong market interest in the project.

Phoenix Network is a decentralized derivatives trading platform built on Blast L2, aimed at providing an efficient, secure, and transparent perpetual contract trading environment. The platform adopts a dual-token economic model, which includes the governance token PEX and the contribution token WIN.

PEX Governance Token

PEX is the governance token of the Phoenix Network, with a maximum supply of 10 million tokens. It is primarily used for platform governance voting and various revenues from the storage protocol derivatives exchange. The minting price of PEX is 0.0002 ETH, and a 10% minting tax will be charged for each minting.

The issuance of PEX is closely related to the development stage of the Phoenix Network. In the early stage of the project, 333,333 PEX were minted through an IDO. Subsequent PEX issuance can only be minted through bond sales. The actual circulation of PEX will be influenced by various factors, and it is expected to enter a deflationary phase in the later stages.

PEX holders can earn rewards through staking, which increases in a compound manner in the form of sPEX. Users can also purchase LP bonds by adding PEX-ETH liquidity to receive additional rewards.

PEX is closely related to the derivatives exchange PbTrade. When traders incur losses, 55% of the profits from the treasury position are used to repurchase and burn PEX. In addition, PEX stakers can also earn 25% of the trading fees from PbTrade as additional income.

WIN Contribution Value Token

WIN is the contribution value token of the Phoenix Network, with a theoretical maximum supply of 1 billion tokens. It is mainly used to reward those who contribute to the growth of protocol users, and it can also serve as a burning mechanism to accelerate the release of PEX staking rewards.

WIN is minted by users who stake PEX, and the minting process consumes USDB, causing the price of WIN to rise. WIN can accelerate the release of PEX staking rewards through burning, or it can be redeemed from the USDB treasury at real-time prices. Whether minting, burning, or redeeming, all lead to an increase in the price of WIN, forming a one-sided continuous upward model.

The Role of the Dual-Currency Economic Model

PEX and WIN play different roles in the economic model of the Phoenix Network, interdependent and promoting each other.

1. Inject funds and liquidity into the protocol
2. Maintain the stability and balance of the platform
3. Increase transparency and fairness

Through this dual-token economic model, the Phoenix Network aims to create an efficient and fair decentralized derivatives trading environment, attracting more users to participate and providing incentives and value capture for them.