Paal AI (PAAL) tokenomics

The PAAL AI ecosystem is built around the $PAAL utility token, an ERC-20 token on the Ethereum blockchain, designed to incentivize participation, provide access to premium AI services, and facilitate a revenue-sharing model with its community.

Issuance and Allocation Mechanism

The PAAL AI token has a fixed total supply, and its smart contract has been renounced to ensure transparency and security.

Token Information

Allocation Mechanism

Specific details regarding the initial distribution breakdown (e.g., percentage allocated to the team, private sale, or public sale) were not available. However, the tokenomics are structured to support the ecosystem and reward holders through staking.

A retracted proposal for a merger with the Artificial Superintelligence (ASI) Alliance had previously outlined a potential allocation of 5% of the PAAL token supply to be used for staking rewards, which would have been subject to a 180-day vesting period for converted tokens. Since this merger proposal was retracted, the current official allocation breakdown remains undisclosed in the provided information.

Usage and Incentive Mechanism

The $PAAL token serves as the core utility and incentive mechanism within the PAAL AI ecosystem, driving demand for its AI services and rewarding long-term holders.

Core Utility of $PAAL

Holding $PAAL tokens grants users access to several key benefits and features:

• Exclusive AI Services: Token holders can unlock premium access to advanced AI tools and services integrated within the ecosystem.
• Staking Rewards: Users can stake $PAAL to earn competitive rewards, which are enhanced by the platform's buyback mechanism and overall ecosystem growth.
• Discounts and Reward Mechanisms: The token is used for discounts, reward mechanisms, and trading volume rewards.

Revenue Sharing and Incentives

A central component of the PAAL tokenomics is the revenue-sharing model, which directly rewards stakers.

1. Sources of Revenue: The platform generates revenue from multiple streams, including:
   • Fees from its proprietary Whitelisted AI Solution used by companies.
   • Advertising and Cross-Promotion partnerships.
   • Taxes from Trading (1%): A unique tax on trading volume that directly impacts stakers.
   • PaalX Trading Fees generated from trades on the PaalX platform.
   • Future revenue streams like subscription services and commissions.
2. Revenue Allocation: Revenues are transferred to a dedicated account, paalecosystemfund.eth, for ecosystem utilization.
3. Distribution to Stakers: An impressive 50% of certain earnings are allocated to stakers, promoting participation and stability. Rewards are paid out in ETH and can be claimed through the platform's rewards dapp.
4. Buybacks: All tokens repurchased by the ecosystem are redirected into staking pools, which serves to enhance staking rewards and support long-term token value.

Locking Mechanism and Unlocking Time

The primary locking mechanism for $PAAL tokens is through the staking pools, which offer varying lock-up periods and corresponding rewards.

Staking Pools and Rewards

Users can choose from different staking pools, with longer lock-up periods offering higher Annual Percentage Yields (APY) and a greater share of the ETH revenue rewards.

The PAAL rewards earned from staking can be withdrawn at any time, while the ETH rewards are allocated based on the chosen pool's share of the total ETH rewards.

Information regarding specific vesting schedules or unlocking times for initial token allocations (e.g., team, advisors, or private investors) was not available in the provided data.