Section 7. Tokenomics (PAWN-COIN) and Prediction Markets

The PAWN-COIN token is the base unit of account of the platform's internal economy.

The value of the ecosystem is formed based on:

1. The effectiveness of algorithmic trading.
2. The accuracy of collective analytics (community forecasts).

7.1. Internal Prediction Markets

The fundamental mechanism of interaction with the community is implemented through the already launched Backed Forecasts.

Participants form forecasts regarding the outcome of specific market scenarios (for example: «Will a Reverse occur?», «Will the price reach the P6 level?»).

• The forecast is backed by a Stake in PAWN-COIN tokens.
• The stake is algorithmically converted into a position (YES/NO) on the internal prediction market.
• Result verification is fully automated — the system records actual price movement and algorithmically closes the markets without moderator intervention.
• A correct forecast generates a financial Payout and increases the user's Influence Score.

7.2. Emission Mechanisms (Proof-of-Contribution)

Users generate PAWN-COIN tokens by contributing to the ecosystem:

• Successful Forecasts: Systematic profit extraction on Prediction Markets.
• Content Creation: Developing educational materials, publishing video analytics, and expanding the project's presence in the information space.

7.3. Utility

PAWN-COIN is designed to evolve from an internal market collateral instrument into the economic coordination layer of the MarketPawns ecosystem. In the current product architecture, the token already sits at the intersection of market participation, contribution rewards, reputation growth, wallet progression, and auditable financial accounting.

This creates a utility model tied to real platform activity rather than abstract token circulation:

• Market Utility: PAWN-COIN powers Stake-based participation in Backed Forecasts and serves as the accounting unit for payouts, refunds, and settlements.
• Contribution Utility: the token can be emitted for actions that directly improve the ecosystem, including educational content, analytical reviews, translations, case labeling, and QA for new scenarios.
• Reputation Utility: Influence Score tiers provide a trust layer for scaling rewards, prioritizing qualified contributors, and gating access to higher-value participation mechanics.
• Progression Utility: wallet growth reflects not only successful forecasts, but also the user's cumulative contribution and status inside the platform.
• Audit Utility: every emission, adjustment, payout, refund, and future governance-related balance movement can be recorded in an auditable ledger.

As the ecosystem scales, this utility layer can expand through:

• Bounty Marketplace: structured token payouts for measurable product-improving work.
• Governance-Lite: limited token-based voting on new market types, feature priorities, bounty categories, and Sandbox tools, while the trading core remains outside direct token governance.

In this model, PAWN-COIN is not a standalone speculative asset. It is the internal economic interface through which participation, contribution, reputation, and coordination are aligned as the platform grows toward a decentralized economy.

7.4. Token Supply and Allocation Framework

To support ecosystem growth, contributor incentives, treasury resilience, and disciplined market formation, the tokenomics model uses a fixed supply of 1,000,000,000 PAWN-COIN.

The high-level allocation framework is structured as follows:

Bucket	Share
Community	35%
Treasury	20%
Team	15%
Liquidity	10%
Reserve	15%
Advisors	5%

The Community allocation functions as the main growth and participation layer of the ecosystem and is broken down into:

Community Bucket	Share of Total Supply
Influence Rewards	15%
Prediction Rewards	10%
Airdrop	5%
Referral Program	5%

7.5. Treasury Structure and Initial Circulation

The Treasury allocation is designed as a dual-control strategic pool:

• Founder-Controlled Treasury: 10% of total supply
• DAO Treasury: 10% of total supply

This 50/50 structure is intended to preserve early execution capacity while allowing a gradual transition toward broader ecosystem coordination.

For a conservative staged launch, the recommended initial circulation is 12% of total supply. This level is designed to be large enough for early market formation, community activation, and trading functionality, while remaining disciplined enough to avoid unnecessary early supply pressure.

A logical initial composition may include:

• 5% from the Liquidity allocation for initial market formation
• 2% from the Airdrop allocation for the first community activation wave
• 2% from Prediction Rewards and Influence Rewards for early ecosystem participation
• 1% from the Referral Program allocation for controlled growth activation
• 1% as an initial strategic ecosystem distribution pool
• 1% for launch-aligned treasury-supported operational incentives

7.6. Unlock Principles and Vesting Logic

The unlock design follows several core principles:

• Community allocations are distributed gradually to support long-term ecosystem growth.
• Team allocations are subject to multi-year vesting schedules.
• Treasury reserves are intended for long-term development and strategic initiatives.
• Reward emissions prioritize meaningful participation, forecasting performance, and ecosystem contribution.
• Liquidity allocations are released progressively to support healthy market formation.
• No large-scale unlock events are planned that could create unnecessary market pressure.

For a conservative staged launch, the recommended vesting logic is:

• Team: 12-month cliff followed by 36-month linear vesting
• Advisors: 6-month cliff followed by 24-month linear vesting
• Founder-Controlled Treasury: initially non-circulating, with milestone-based releases tied to development, partnerships, and strategic execution
• DAO Treasury: initially non-circulating, activated progressively alongside governance-lite and community-approved ecosystem programs
• Reserve: initially locked and released only for strategic, defensive, or long-horizon ecosystem needs
• Prediction Rewards / Influence Rewards: emitted gradually through measurable platform participation over a multi-year horizon
• Airdrop: partially unlocked at launch for initial community activation, with the remaining portion distributed in controlled waves
• Referral Program: released progressively based on verified user growth and ecosystem-quality acquisition
• Liquidity: seeded at launch for market formation, with any remaining allocation added progressively based on real market depth and trading conditions

7.7. Launch Readiness Logic

MarketPawns approaches token readiness as an execution sequence rather than as a marketing event:

1. Internal utility framing of PAWN-COIN across market participation, contribution rewards, reputation, accounting, and ecosystem coordination.
2. Formal public tokenomics publication covering supply, allocation, treasury structure, unlock principles, and vesting logic.
3. Public token structure announcement defining the market-facing launch structure.
4. TGE after legal and liquidity readiness once the project has completed the necessary external launch preparation.

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