Paal AI (PAAL) tokenomics

PAAL AI (PAAL) is an AI-driven ecosystem built on the Ethereum blockchain that provides customizable AI virtual assistants and a suite of intelligent tools for data processing, predictive analysis, and automation. The PAAL token serves as the primary utility and governance asset within this ecosystem, facilitating access to premium services and incentivizing community participation.

Issuance Mechanism

The PAAL token was launched on the Ethereum network in June 2023. The issuance is characterized by a fixed supply model with specific tax structures designed to support the ecosystem's growth and stability.

• Total Supply: 1,000,000,000 (1 billion) PAAL tokens.
• Transaction Taxes: The protocol implements a 0% tax on both buys and sells to encourage liquidity and trading. However, a unique 1% tax on all $PAAL trading volume is utilized to fund the revenue-sharing pool for stakers.
• Smart Contract Security: The smart contract has been renounced, ensuring that the team cannot unilaterally modify the token's core parameters, thereby increasing transparency and security for holders.

Allocation Mechanism

While a granular percentage-based pie chart for the initial distribution was not explicitly detailed in the provided records, the allocation of generated revenue and the strategic use of the supply are well-defined:

• Paal Ecosystem Fund: Revenues generated from services are transferred to a dedicated account (paalecosystemfund.eth) for purposeful utilization and ecosystem development.
• Staking Rewards: A portion of the supply is redirected into staking pools. For instance, in a previously proposed (but later retracted) merger with the ASI Alliance, 5% of the PAAL supply was specifically earmarked for staking rewards.
• Buybacks: Repurchased tokens are redirected into staking pools to enhance rewards and drive long-term value.

Usage and Incentive Mechanism

The PAAL token is central to the ecosystem's utility, offering multiple layers of incentives for holders and active participants.

Token Utility

• Exclusive AI Services: Holding PAAL unlocks premium access to advanced AI tools, such as AI-powered crypto trading (PaalX), market insights (Ask.Paal), and smart contract audits (Audit.Paal).
• Governance: Token holders can participate in the decision-making processes of the ecosystem.
• Discounts: Users receive discounts on platform services when utilizing the native token.

Incentive Structure

• Revenue Sharing (RevShare): PAAL AI shares its success with the community. An impressive 50% of certain earnings—including whitelisted AI solutions, advertising, and trading taxes—are allocated to stakers.
• Trading Volume Rewards: Stakers benefit from a 1% share of the total $PAAL trading volume, creating a direct link between market activity and holder rewards.
• Referral System: The platform includes a referral mechanism to reward users for bringing new participants into the ecosystem.

Locking Mechanism

PAAL AI utilizes a time-based staking architecture where rewards are scaled based on the duration for which tokens are locked. Users can choose from several staking pools, each offering different Annual Percentage Yields (APY) and shares of ETH rewards.

The mechanism includes an Auto-Compound feature, allowing stakers to automatically reinvest their earnings to maximize their returns over time.

Unlocking Time

Specific historical "cliff" unlock dates for the team or early investors were not provided in the available data. However, the ecosystem operates with the following operational unlocking and vesting principles:

• Staking Unlocks: Tokens committed to staking pools are locked for the duration of the selected period (14, 28, or 56 days). Once the period expires, the tokens become available to the user.
• Vesting for Mergers: In the context of strategic proposals, such as the proposed merger with the ASI Alliance, a vesting period of 180 days was suggested for converted tokens to ensure market stability.
• Reward Withdrawal: While the principal is locked for the duration of the staking period, PAAL rewards generated from the APY can typically be withdrawn at any time.