💰 4. Tokenomics (Economic Model)

Pinland operates on a dual-token system with PIN (utility token) and PLG (governance token), each designed for distinct purposes to drive ecosystem growth and community engagement.

Token Types and Utilities

1. Utility Token (PIN)

• Purpose: Rewards user activity and serves as the transactional currency.
• Use Cases:
  • Earned through check-ins, POI submissions, and data validations.
  • Spent on in-app features like NFT stickers, visibility boosts, and premium services.

2. Governance Token (PLG - Pinland Governance)

• Purpose: Facilitates decentralized decision-making and aligns long-term incentives.
• Use Cases:
  • Voting on protocol changes (e.g., reward rates, feature updates).
  • Staking for passive income or enhanced governance privileges.

Token Summary Table:

Token	Type	Key Use Cases	Distribution Mechanism
PIN	Utility	Rewards, transactions, staking	Earned via activities
PLG	Governance	Voting, governance staking	Token sales or airdrops

Token Distribution and Emission

Pinland's initial token supply and distribution mechanisms are designed to balance community engagement, long-term commitment, and ecosystem growth. Below is the token distribution breakdown:

• Community Allocation: 35%
  • Distributed via public sales, airdrops, and activity rewards to incentivize community building, user participation, and initial liquidity. This portion will be gradually emitted through contributions such as check-ins, content creation, and other platform activities over time.
• Founding Team Allocation: 20%
  • Vested over time (e.g., 3-4 years) to ensure the founding team's long-term commitment to the project's success and stability.
• Investors Allocation: 20%
  • Allocated through private or public sales with a vesting period (e.g., 1-2 years) to support fundraising efforts and align investor interests with the project's growth.
• Ecosystem Reserve/Treasury: 15%
  • Reserved for rewarding early adopters, contributors, and staking rewards, as well as funding platform development, marketing, and future expansions.
• Advisors/Partnerships: 10%
  • Allocated to strategic advisors and partners who provide expertise, resources, or collaborations to enhance Pinland's ecosystem.

(Percentages are finalized as shown above, though the total token supply and specific vesting schedules may be adjusted based on market conditions and strategic needs.)

Figure 2: Pinland Token Distribution

Staking, Fees, and Governance

Pinland encourages token staking to support platform sustainability and community engagement:

Staking for Rewards (PIN)

• Users stake PIN to:
  • Boost POI visibility.
  • Validate data accuracy.
  • Earn a share of transaction fees.

Transaction Fees (PIN)

• Collected from premium features, NFT sales.
• Allocated to:
  • Reward distribution.
  • PIN buybacks for value stabilization.

Governance (PLG)

• PLG holders vote on:
  • Token emission schedules.
  • Platform upgrades.
  • Staking incentives and parameters (e.g., staking caps for public POIs).

Sustainability and Long-Term Value

PIN Economic Regulation

• Burning:
  • Small amounts of PIN burned during check-ins, POI reviews, and POI submissions to deter spam.
  • Premium features (e.g., permanent records) burn PIN for scarcity.
  • Buybacks: NFT marketplace revenue used to repurchase and burn PIN.

PLG Economic Regulation

• Burning: Optional PLG burns to amplify voting power or submit proposals.
• Staking: Staked PLG earns passive rewards, encouraging retention.

POI Staking Model (System Economics Perspective)

• Liquidity Locking:
  Tokens staked reduces circulating supply, temporarily stabilizing token value.

• Quality Enforcement via Slashing:
  POIs flagged as fraudulent or inaccurate incur token penalties, incentivizing high-quality contributions and protecting platform integrity.

• Integration with Broader Tokenomics:
  POI staking adds practical utility to tokens beyond simple rewards, stimulating ongoing user demand and engagement.

Pinland's integrated staking and token-burning policies establish a sustainable, balanced, and user-aligned economic model, supporting long-term growth and token value appreciation.