PAYT Token Distribution

The PAYT token distribution has been carefully designed to ensure the short- and long-term success of PayAccept and its community.

TL;DR

• PAYS is the governance/security token of PayAccept (to be issued).

• PAYT is the utility token of PayAccept.

• The total supply is 45 million PAYT.

• The team holds 9 million PAYT.

• The community holds 6 million PAYT.

• 5 million PAYT tokens will be minted by PayNodes.

• The remaining 25 million PAYT will be used for liquidity, treasury, and further public sales.

PayAccept was created with the mission to make Decentralized Finance (DeFi) accessible to everyone worldwide. It is crucial for PayAccept to operate in a decentralized manner, ensuring that the community is at the heart of the project’s governance and growth.

With over 24,000 people on Twitter and 15,000 on Telegram, the PayAccept community has gained significant momentum. The community is a top priority for the project, and with the launch of the PAYT token, we hope to see this vibrant ecosystem continue growing in a healthy, sustainable way.

In this post, we outline our plans for the distribution and utility of the PAYT token.

Overview

The total initial supply of PAYT tokens is 45 million. The primary purpose of PAYT is to involve as many people as possible in Decentralized Finance and create a robust ecosystem.

Our vision for PAYT distribution is long-term, ensuring it spans multiple years to achieve sustainability until the PayAccept protocol reaches widespread adoption. Below is the breakdown of the PAYT token distribution:

• 42.5% (approximately 19.13 million PAYT) will be allocated for liquidity, treasury, and public sales.

• 20% (or 9 million PAYT) is allocated to the PayAccept Core Team.

• 15% (or 6.75 million PAYT) is allocated to early backers and presale investors.

• 12.5% (or 5.625 million PAYT) is reserved for PayNode Minters.

• 10% (or 4.5 million PAYT) is set aside for strategic partners, grants, advisors, and valuable community members.

PAYT Minting Program

PayAccept plans to distribute 12.5% of the PAYT supply (5 million tokens) through PayNode mining over a span of 5 years. This will incentivize long-term participants and stakers in the ecosystem.

More specifically, these 5 million PAYT tokens will be distributed through staking contracts for PayNode holders, High Authority (HAs), and liquidity providers (LPs) participating in Automated Market Maker (AMM) pools. These staking contracts are designed to be fluid, without lockups or epochs—allowing PayNode holders to accumulate PAYT tokens continuously. The current Annual Percentage Yield (APY) is set at 50%.

Each month, a specific amount of tokens will be distributed across the various staking contracts. Initially, this mechanism is managed off-chain via a multisig controlled by the PayAccept Core Team, but over time, governance will have the ability to adjust these parameters.

The goal is to reward early users while avoiding short-term capital inflows, ensuring the protocol remains attractive to new participants over the long term.

Governance

At the launch of the PayAccept application, 20% of the team's tokens will be allocated to the PAYS pools. The remaining tokens will be governed by the community, who will hold PAYS tokens. Only with PAYS tokens can users participate in governance and voting decisions.

All PAYT holders will have the ability to swap their PAYT tokens for PAYS tokens through a one-way mint-burn mechanism. When PAYT is converted to PAYS, the PAYT tokens are burned, and PAYS tokens are minted after the holder's identity is verified. This ensures that votes are legally binding and verifiable.

Additionally, the Core Team plans to sell a significant portion of its tokens via a bonding curve or directly through the app. This would enable new investors to flow into PayAccept, helping to accumulate a surplus for the platform, reduce the overall supply, and ensure decentralization by reducing the team's control over the reserves.

Core Team, Early Backers, and Strategic Partners

The tokenomics plan allocates 15% of the total supply to the Core Team. The objective is to keep the team incentivized but not in control of the protocol, ensuring long-term alignment with the community’s interests. To support this, team tokens are subject to a 3-year vesting period, ensuring founders and key contributors remain committed to PayAccept’s success.

Initially, 2% of the Core Team’s allocation (equivalent to 0.30% of the total supply) will be made available, with the remaining tokens vested linearly over time.

To fund extensive security audits and recruit top-tier talent for the protocol, 15% of the total token supply was distributed to early backers. However, the majority of the liquidity distributed to the community will exceed that distributed to early backers, ensuring that control remains decentralized and within the community.

Strategic Partners and Community Grants

5% of the initial token supply is held by the Core Team for distribution as grants, bug bounties, or rewards to strategic partners (such as exchanges) for listing the token, as well as for valuable community members and advisors who contribute to the protocol’s growth.

While the PayNode Mining program is proportional, it tends to favor users with more capital. We believe that grants and community rewards are essential to ensure governance is distributed fairly, empowering non-capital-dependent users and fostering a more inclusive community.

A portion of these tokens may also be distributed back to the PAYT Treasury via liquidity mining, transactions, or curve programs if that is deemed the best way to incentivize participation.

Token Utility

While token distribution is important, the utility of the PAYT token is equally critical. The PAYT token is the cornerstone of the PayAccept ecosystem.

PAYT serves multiple functions:

• Governance: By converting PAYT to PAYS, users gain the right to vote on key protocol decisions, such as adjusting parameters, deploying new features, and accepting new collateral types.

• Utility: PAYT is the primary utility token used throughout the PayAccept application, enabling access to various features, integrations, and upgrades.

In addition, surplus tokens can be used to absorb collateral volatility or support initiatives around the protocol. PAYT can also be bought back from the market via auctions, similar to MakerDAO. Buybacks align the incentives of PAYT holders with the overall success of the PayAccept ecosystem. Purchased tokens may be burned, returned to the treasury, or distributed through mining or staking programs.

Summary

The PAYT token distribution has been designed to foster healthy growth and sustain the vision of PayAccept as a tool for making Decentralized Finance more inclusive and accessible.

There are always tradeoffs when designing tokenomics for the short- and long-term success of a project. We have structured a system that prioritizes the community over the team and early backers, balancing both capital-dependent and non-capital-dependent incentives.

As always, we welcome your feedback via Twitter and Telegram, and we hope you share our vision for growing PayAccept through efficient and inclusive tokenomics.

What’s Next: Launch Plans

PayAccept is set to go live in Q3-Q4 2024. We will launch both a mobile and web application, available on the Google Play Store and Apple App Store. In addition, we are planning to launch the first liquid and reliable Euro stablecoin, backed by PayAccept.

The launch of the PAYS governance token will also take place within this period, with an ETH/PAYT liquidity pool available for immediate liquidity. The initial liquidity will be made available on a launchpad, and within five years, the total PAYT supply will be circulating across several exchanges, delivering sustainable value for the token and its holders.