Token Utility
This page is provided for informational purposes to explain protocol mechanics. It does not constitute an offer of securities or investment advice. $P2P is not available to US persons. Nothing herein should be construed as a promise of financial return. Please read the full Disclosures before proceeding.
Governance. $P2P is a governance token. Protocol parameters, treasury deployment, and the ability to mint new tokens are controlled by token holders through futarchy-based governance, not by any single team, foundation, or entity. Governance provides a mechanism to redirect protocol control if resources were ever mismanaged. Decisions that affect token supply (minting) must pass through a decision-market governance mechanism, where participants stake real capital on whether a proposal benefits the protocol. Proposals that the market predicts will harm the protocol are automatically rejected.
Voting. Token holders vote on protocol parameters such as fees, limits, merchant rules, oracle configs, and treasury allocation. One staked $P2P = one vote, with delegation.
Staking. Circle Admins stake $P2P to operate merchant networks. Delegators stake $P2P to Circles to participate in protocol operations: monitoring Circle performance, evaluating merchant conduct, and engaging in dispute oversight. Delegators who fulfill these operational duties may receive incentive allocations from the fee distribution contracts, conditional on the Circle's performance. Merchants stake USDC as working capital. The staking design creates skin-in-the-game at every layer.
Fee routing. Protocol fees are routed across participants based on their operational roles.
| Recipient | Share of Fees |
|---|---|
| Merchants + Delegators | 53.33% |
| Treasury | 20%, planned increase to 35% (governed via MetaDAO futarchy) |
| Insurance Pools | 17.78% |
| Circle Admins | 8.89% |
No single party captures a majority of protocol fees. Merchants receive the largest share because they provide working capital and operational labor. Treasury contributions are governed by token holders via MetaDAO futarchy. Governance may direct these funds toward ecosystem development, liquidity operations, or other protocol-serving measures. Insurance pools exist so disputes don't become externalised costs.