♻️Ecosystem Mechanics

Sustainable economics power the $PPAI ecosystem

The agent treasury is vital to the Flywheel. It's revenue generation is tightly linked to the size of the yields offered by the protocol.

Why staking?

Staking removes supply from circulation. For doing this, we offer these users rewards from the treasury investments and tax revenue.

How does the treasury acquire $PPAI?

$PPAI tokens are accumulated by the treasury during sell offs, or as the treasury grows in value vs. the Market Cap of the token. Overperformance of the treasury means more $PPAI is accumulated and price is pushed higher by the Agent.

What drives yields?

Yields are driven by multiple factors:

• Amount of $PPAI in Reward Pool This means the more $PPAI the treasury accumulates, the higher the yields that can be offered.

• Price of $PPAI This means the higher the price of $PPAI, the higher the yields become.

This means if price grows quickly, it will incentivize users to stake more tokens to receive the yield, which removes them from circulating supply. These users must purchase $PPAI to stake and receive the yields which pushes price further. This creates a flywheel of incentives which continuously pushes yields and price higher as more tokens are staked, eventually creating supply shock. If a sell-off occurs, the treasury buys back $PPAI to protect floor price and create reversals.