Introducing PCOG — The Token that Powers the Precog Finance Ecosystem
When we think of tokens, we tend to think about digital currencies — virtual coins created, traded, and tracked on the blockchain. While in part true, tokens can also be viewed from a broader lens, and it is at that point that some may come to realize that they’re much more than what many might have given them credit for.
From fungible to non-fungible tokens, the blockchain industry has evolved to a point where cryptocurrencies offer so much more than peer-to-peer digital payment systems. Whether they’re being used to issue digital identity cards, or for governing decentralized protocols and organizations, it is hard to contain one’s excitement when pondering about the possibilities that the future has in store for us.
And it is in that enthusiastic, awestruck, and forward-looking spirit that we would like to dive into the token that acts as the lifeblood of the Precog Finance ecosystem — PCOG.
Token Standard and Utility
PCOG is an ERC20 token that also supports the Layer-2 network of Polygon; it represents the value of the platform and is an integral part of the financial incentive mechanism. The token carries multiple use-cases within the Precog ecosystem, and chief among them are:
- Investment Pool Rewards: Users who deposit supported assets in Sentient’s investment pools receive rewards in PCOG tokens. In short, investment pools are used by Sentient to perform trades, and users can deposit various crypto assets in them similar to how they would with liquidity pools. (For a more in-depth explanation of investment pools, click here).
- Staking: PCOG tokens can be staked for rewards, for which users will earn more PCOG tokens and wBTC (wrapped Bitcoin). This process functions as a reward-sharing mechanism where stakers earn a percentage of Precog’s total revenue.
- Gasless Transactions: Cerebral — Precog Finance’s futures contracts and derivatives DEX — will feature gasless transactions where users can use PCOG tokens to pay for gas, as opposed to ETH, MATIC, or any other native gas token integrated in the future. (You can find out more about gasless transactions here!).
As the Precog Finance ecosystem expands and grows, so will the use-cases of the PCOG token. As of now, speaking strictly in terms of utility, PCOG serves to encourage investment, staking, and trading through the different roles it plays like a project token — but it also carries another critical function.
Decentralization plays a vital role in almost all blockchain applications, as it is one of the most critical aspects of the DeFi movement. Despite its relative abundance, it is highly valued and coveted and a deciding factor for most DeFi investments and participation.
Achieving true decentralization requires a governance system, ideally powered by a token whose ownership represents the stake in the underlying project. In addition to its utilities, the PCOG token also enables governance in the Precog Finance ecosystem, giving stakers the right to participate in the decision-making procedure that will help shape the protocol’s future.
Establishing healthy tokenomics is a fundamental and challenging challenge for any project. From Satoshi’s blockchain-investing Bitcoin to the thousands of projects that have spawned in the decade since — a token’s economy should make sense and achieve a healthy balance between availability and limit. There are myriad other factors to consider between those elements, such as inflation and deflation, lockups and vesting schedules, funds and treasuries, bounties, and incentives. Therefore, to say that crafting sound tokenomics is a burdensome undertaking would be an understatement.
Nevertheless, the time and effort spent conceiving and carving out a robust token economy pay off in the end, and the Precog team has been hard at work achieving that very feat. Below you’ll find a chart that details the PCOG tokenomics, including allocation, various rounds, and their respective vesting periods.
The PCOG token is capped at 98,000,000 tokens, making it inflation-proof, but more importantly, it remains accessible without having to mint excessively and consequently hinder and dilute the token’s potential. A lower supply was considered initially, but hovering around these limits results in affordable entry points, inviting more users and enabling higher levels of decentralization from an earlier stage.
Stay Tuned for our IDO!
From protocol upgrades to new partnerships and other exciting activities, we are working around the clock to lay the foundations for a successful and memorable project launch. If you’d like to participate in the PCOG IDO, be sure to check out our communities and be the first to know the dates!