$PUFFER has interesting tokenomics. This article will discuss the details of $PUFFER tokenomics and its utility. Curious? Listen to the explanation!
Please note, Puffer Finance is not only an innovative solution for staking Ethereum. However, the platform also creates an ecosystem that encourages decentralization, security, and community engagement.
Before discussing the tokenomics of $PUFFER, let's first discuss what Puffer Finance is. The following is the explanation.
What is Puffer Finance (PUFFER)?
Puffer Finance is a protocol liquid restakingwhich is built on EigenLayer, offers the opportunity for anyone to become an Ethereum validator without needing to have 32 ETH, but only with 2 ETH.
The protocol encourages small validator participation, increases decentralization, and allows users to earn rewards from staking and restaking their assets.
Apart from focusing on staking, Puffer Finance develops innovative solutions. Among them are UniFi rollup and UniFi AVS (Advanced Validator Services) to speed up transactions and maintain the security of the Ethereum network.
The Puffer ecosystem is not only technology-oriented. However, they also put the community at the center of decision-making through decentralized governance based on the $PUFFER token.
$PUFFER Coin Tokenomics and Utility Details
Source: Medium (Puffer Finance)
$PUFFER tokenomics is designed with the principles of decentralized, sustainability, and community incentives in mind. The total supply of $PUFFER is 1 billion tokens, with distribution focused on empowering the community and supporting the Ethereum ecosystem. Following are the allocation details:
Community & Ecosystem (40%)
As much as 40% of the total supply is allocated to build a dynamic ecosystem. These funds will be used for community incentives, future airdrops, and initial liquidity on the exchange. The main focus of this allocation is ensuring the continued growth of the Puffer ecosystem.
Protocol Guild (1%)
As part of its commitment to supporting Ethereum, 1% of the $PUFFER supply will be provided to fund Ethereum core development for four years. This move aims to strengthen the Ethereum network and ensure its scalability and innovation in the future.
Airdrop Season 1 (7.5%)
The first so-called airdrop Crunchy Carrot Questhas started with a 7.5% token allocation for early participants. As much as 65% of this allocation is immediately available on the first day for eligible users, while the remainder will be given in stages over six months.
Airdrop Season 2 (5.5%)
The second season of airdrops has started after the pick snapshoton October 5, 2024. Participants from the first season have the opportunity to continue their journey and earn even more rewards in this second season.
Early Contributors and Advisors (20%)
A total of 20% is allocated to Puffer Finance's core team and advisors. This allocation has vesting periodthree years, with the first year as cliffto ensure long-term commitment to the ecosystem vision.
Investors (26%)
Investors who support the development of Puffer Finance will receive their token allocation over three years, with cliffone year and vestingthe next two years. Support from investors allows Puffer to create high-quality products for the community.
$PUFFER Coin Utility
The $PUFFER coin has several important functions in the Puffer Finance ecosystem:
- Decentralized Governance: $PUFFER holders can participate in decision-making regarding the development and future direction of Puffer Finance. This governance mechanism strengthens the principles of transparency and community involvement.
- Strike then Restake: Users can swap their ETH into pufETH, allowing them to earn double rewards from staking and restaking on EigenLayer.
- Ecosystem Rewards: $PUFFER coins are used as rewards for airdrop participants, validators and users who are active in campaigns such as Crunchy Carrot Quest.
- Liquidity and Incentives: Puffer Finance ensures initial liquidity on the exchange using token allocations provided to the community and ecosystem partners, increasing accessibility for new investors.
Conclusion
The $PUFFER token becomes an important element in the Puffer Finance ecosystem with multiple utilities that strengthen the community and support decentralization.
Its tokenomics design ensures that the community gets ongoing incentives, while contributions to Ethereum development underscore Puffer's commitment to network innovation and security.
With a fast-growing ecosystem and strong community support, Puffer Finance is poised to become a major player in the world of Ethereum staking.
