16. Token Economics
The $P2P token is an ownership token. Control is split across two layers. Protocol parameters and upgrades on Base are governed by $P2P holders through an on-chain Governor (Compound Bravo style). Token minting, supply changes, and treasury allocation are governed on Solana through MetaDAO's on-chain decision-market, where the token is issued and the treasury is held. Together these place protocol intellectual property, treasury funds, mint authority, and operational parameters under token-holder control rather than any single team, foundation, or entity. If protocol resources or IP were ever misappropriated, token-holder governance provides the mechanism to redirect control, so control over the protocol and its resources is distributed and enforced on-chain. This is protocol ownership exercised through governance, distinct from equity. The token is not equity, debt, or a security, and it carries no claim on the assets, revenue, or profit of any entity.
Total supply is fixed at 25,800,000 $P2P with no inflation. The token is minted via MetaDAO on Solana, and any change affecting token supply is decided through MetaDAO's decision-market governance. Protocol-parameter governance is separate: the on-chain Governor on Base votes with $P2P bridged from Solana, one staked token to one vote, for, against, and abstain against a snapshot quorum, and passing proposals execute through an integrated timelock that gives holders an exit window before any change takes effect.
On the protocol side, holders vote through the on-chain Governor on fee structures, transaction limits, risk weights, oracle configurations, and protocol upgrades. Treasury allocation is governed separately through MetaDAO's decision-market on Solana. Of protocol revenue, 20% is routed to the treasury and 80% to network operators (merchants, Circle Admins, delegators, and insurance pools). There are no automatic buybacks. The treasury may direct buy-and-burn or other uses only through a passed MetaDAO decision-market vote on Solana, since buy-and-burn is both a treasury allocation and a change to token supply.
On the economic side, merchants and verifiers stake tokens as bonds, aligning their incentives with honest behavior. Fee routing provides rebates and discounts to active participants. The token is also staked into dispute insurance pools and delegated to Circles of Trust, where participants are compensated for the capital they put at risk and the operational work they perform.
A portion of protocol revenue flows into the treasury. These funds support security audits, bug bounties, ecosystem grants, and liquidity. Treasury allocation is decided through MetaDAO's decision-market governance.