Token economic model
*Lock and Release Months run from TGE.
The rewards to artists and patrons pools necessitate a mechanism to transfer tokens to the reward's ultimate beneficiary. Public Pressure has designed a set of tools to achieve this purpose and manage this mechanism:
- A pre-minted treasury fund: a JTP community reserve which will pay the rewards in the first months;
- A capture fee: a platform fee captured on the total NFT sales which will accrue into the treasury fund to mitigate the inflation and distribute grants to the community.
We intend to use these tools to avoid minting new tokens; in this sense, the JTP network will begin as a non-inflationary system. However, should the reward mechanisms (reward for artists and patron pools) affect the JTP price more than proportionally, the Governance will have the power to create inflation, mint new tokens, and introduce a platform fee. Thus, these policy tools will serve the purpose of optimising the staking rewards and the JTP intrinsic value.
The token inflation can then become variable and based on the number of tokens staked. The rewards to artists and patrons pools create inflation since they take a percentage of the tokens staked. Hence the TVL drives the number of new tokens minted (the rate of inflation).