Tokenomics
PKT has one token that powers both its governance and utility:
PKT is an ERC-20 utility token
PKT is yielded by staking using the dashboard on https://app.pkt.cash
There are three (3) types of staking beginning on August 21, 2024 (“Launch”):
STANDARD STAKING YIELDS
Standard staking yields enable holders to Stake-to-Earn on their tokens. Each one (1) PKT is equal to one (1) Yield Credit. The longer the lockup duration, the higher the yield multiplier on the underlying locked balance. For example if 1 million PKT is staked for one (1) year, it will receive 1 million x 4 yield credits, equal to 4 million yield credits. Additional tokens can be added to previous lockups at any time. PKT can be staked into a lockbox with optional renewable terms.
Standard Staking Yield Multipliers:
- PKT locked for 3 months receives 1.5x yield multiplier
- PKT locked for 6 months receives a 2x yield multiplier
- PKT locked for 12 months receives a 4x yield multiplier
Each stake must pair with an infrastructure node (see Infrastructure) When staking, each stake can participate in Packet Network’s governance. Any holder who stakes PKT can vote in favor of a candidate to become Network Steward, by entering the candidate’s web3 wallet address.
LP STAKING
PKT holders who stake the liquidity pool on Uniswap (“LPs”) earn AMM fees paid by the Liquidity Pool. During the first 365 days after Launch, until August 20, 2025, LP’s can earn a pro rata share of a 1,000,000 PKT daily yield by staking LP tokens in a lockup of at least one (1) week (“LP Staking”). LP Tokens that are staked into a lockup for three (3) months or longer will also receive PKT staking yield credit multipliers, as listed above.
AFFILIATE YIELDS
PKT is also earned as a yield bonus paid to affiliates. A yield bonus is earned when someone uses an affiliate code (see Affiliate Rewards).