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).

The current working economic-design frame for PAWN-COIN is built around the shared Prediction Markets market-settlement logic and the model-based entry into it through Community Wall:

1. Community Wall — a user uses a model as the basis for the user's own stake, but the stake itself is settled under the same user-vs-user scheme as Prediction Markets; stake size affects the reputation coefficient, while total stake on a model affects its position in Community Pool.
2. Prediction Markets — users play against each other, while a fee on winnings is routed into a separate fee pool, where 50% goes into the reward bank for stakers and 50% goes to platform development.

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 or, later, potentially in USDT.
• 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.
• Winning and losing in this mechanic exist only when there are opposing stakes from other participants.
• A fee is charged only on winnings and routed into a separate fee pool.
• Under the current working scheme, the fee pool is split as follows: 50% into the reward bank for stakers and 50% into platform development.

7.2. Community Wall and Risk-Staking on Forecasts

Community Wall does not create a separate settlement loop. Instead, it provides a model-based entry into the same market mechanic as Prediction Markets, where a user uses a project-generated model not as a passive signal, but as the basis for the user's own stake.

• A user buys and locks PAWN behind a selected model.
• Stake size sets the coefficient for both staker reputation growth and staker reputation decline.
• Aggregate stake on a model affects the model's position in the Community Pool.
• If there are opposing forecasts, the stake is settled under the shared user-vs-user scheme of Prediction Markets.
• If there is no opposing forecast, the amount is returned to the user just like a normal Prediction Markets stake.
• Reward bank payouts are designed as a derivative of fee-based value capture and distributed proportionally to stake size.

So Community Wall differs from direct Prediction Markets entry not by settlement rules, but by adding model context, a reputation coefficient, and aggregate-stake influence on model position.

7.3. Reward Bank and Emission Mechanisms (Proof-of-Contribution)

In the current economic design, the reward bank functions as the staker reward distribution node. In the public framing, this logic is described as a derivative of the Prediction Markets fee pool: 50% of fee-based value capture is routed into the reward bank, after which reward bank spending is designed as proportional distribution among successful stakers based on their active stake size.

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.

7.4. Utility

PAWN-COIN is designed to evolve from an internal market collateral instrument into the economic 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, the Expert Follow System, and auditable financial accounting.

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

• Community Wall Utility: PAWN-COIN is used as a user's risk-stake on a forecast based on a model, creating a buy-and-lock loop around model quality.
• Prediction Markets Utility: the token functions as a participation unit of the internal forecasting market and links user gameplay to a separate fee pool.
• Reward Bank Utility: the token forms a measurable reward layer for stakers, where payouts are stake-proportional and replenishment comes from real risk and fee mechanics.
• 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.
• Expert Follow System Utility: a user holds PAWN to access forecasters from the required reputation tier, copies their bets, and on a winning copied bet pays a surcharge on top of the fee, which is distributed to the copied forecaster according to reputation level.
• 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.
• Expert Follow System: tier-based access to stronger forecasters, for example Bronze free, Silver 500 PAWN, Gold 2,000 PAWN, Elite 10,000 PAWN; the user copies the selected forecaster's bets and on a winning copied bet pays a surcharge on top of the fee in favor of that forecaster.

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

7.5. 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%

7.6. 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 expansion of already validated ecosystem product loops.

For a conservative staged launch, initial circulation is planned at 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

7.7. 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 planned 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 community-approved ecosystem programs and a later-stage treasury-governance framework
• 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

7.8. 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 the Expert Follow System.
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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