Pine Token

PINE is the ecosystem token for the Pine Protocol and the PineDAO

• It will be initially launched on ETH Mainnet and Polygon

• It serves primarily as a transactional, utility and governance token

Token Structure

There are 3 classes of the PINE token, namely PINE, vePINE, and sbPINE.

Symbol	Name	Function	DAO Vote	Transferrable / Tradable	Detail
PINE	Pine Token	Unit of account for the Pine protocol	No	Yes	You can buy and sell Pine in the open market. Protocol incentives are paid in Pine.
sbPINE	Soul-bound Pine Token	Accounting unit used to represent burnt Pine tokens	Yes	No	You will receive sbPINE when you burn PINE and the sbPINE will be soul-bound to you.
vePINE	Vested Pine Token	Accounting unit used to represent staked Pine tokens	Yes	No	You will receive vePINE over time when you stake PINE. When you unstake PINE, the balance of your vePINE will be reset proportionally.

PINE Token

PINE token is tradable and transferable, it is the unit of account for the Pine ecosystem. Pine Protocol users can get access to utilities by holding on to PINE tokens.

Distribution

The total supply of token is hard capped at 200,000,000 and the distributions are as follows.

Last Updated: February 5, 2023

Category	Alloc	Amt	Emission
Team	18.00%	36,000,000	0% at TGE, 2% unlock at month 6, 98% linearly from month 7 to month 36
Seed	7.90%	15,808,990	2.5% at TGE, 97.5% linearly from month 2 to month 18
Private & Advisors	8.15%	16,303,945	0% at TGE, 3% at month 3, 97% linearly from month 4 to month 21
IDO & Listing	0.80%	1,590,000	100% at TGE
Incentives	24.00%	48,000,000	Managed by the DAO but initially set to monthly over 4 years
Liquidity	2.00%	4,000,000	100% at TGE
Bonding	2.00%	4,000,000	Monthly over 6 months
Partnership & Growth	19.15%	38,297,065	Quarterly over 2 years, burned if not used
Treasury	18.00%	36,000,000	Linearly over 12 months; locked up and managed by the DAO

Vested PINE Token

vePINE is a virtual token created to be awarded to stakers of PINE. vePINE is awarded following a schedule which is governed by the PineDAO. According to the initial schedule, vePINE will be automatically minted and distributed to stakers of PINE. The amount of vePINE received is a function of the time and amount of PINE that the user stakes. The entitlement to vePINE will be revoked if a user unstakes any portion of PINE proportionate.

$$vePine_{amt}(t_{stakedPine}) = PineStaked_{amt} * (2^{t_{stakedPine}/36*360*24*3600}-1)$$

Amount of vePINE gained per PINE staked over time (in month)

Soul-bound PINE Token

sbPINE is minted from burning PINE. There is no distribution schedule for sbPINE. The token can be minted instantly with no restrictions. sbPINE serves as a reward for perpetual ownership of PINE to our most loyal investors. sbPINE serves as another way to obtain a higher VIP level much earlier than someone who goes the staking and vePINE path.

Utilities

PINE Token

Auto-Roll Over

By holding PINE in your wallet, the loans associated with the wallet are entitled for auto-rollover. If at rollover time the user’s loan needs top-up, PINE will be deducted from the users wallet and be converted to ETH or MATIC for top-up.

A loan can only be rolled over automatically if:

• The loan that the user is rolling over DOES NOT require topping-up OR

• There is enough unstaked PINE in the user’s wallet to cover the amount of repayment required to top up the loan.

The auto-rollover service costs 10 PINE per rollover and is conducted one day before the loan's expiration date. However, if a user holds more than 10% of PINE in USD value to the current loan amount or 1000 PINE, whichever is higher, the service is provided for free.

White-label access for Partners

Partners of Pine Protocol can engage the team to set up a white-labeled version of the protocol when they satisfy a certain amount of PINE holdings.

vePINE and sbPINE Token

Besides being the governance tokens for the PineDAO (see next section for more detail), vePINE and sbPINE together serve as the VIP membership proof and utility token within the Pine ecosystem. For the sake of unifying terminologies when explaining the utilities and use in formulas, they will collectively be called uPINE in the rest of the whitepaper. However, it is important to note that sbPINE and vePINE are calculated against their own respective total supply when used in formulas without exception.

For example, if uPINE is used in such a formula:

$$f(\frac{uPINE_{holding}}{uPINE_{supply}})$$

it can be expanded into

$$f(\frac{vePINE_{holding}+sbPINE_{holding}}{vePINE_{supply}+sbPINE_{supply}})$$

This also implies that one user could go both the vePINE path and sbPINE path and reap benefits from both paths.

Fee discount for borrower

The formula for fee discount is as follows

$$0.5^{200*\frac{uPine_{holding}}{uPine_{supply}}}$$

For example, a user holds 0.25% of total vePINE supply and 0.1% of total sbPINE supply, the user will get a total of

$$min(1,1-0.5^{200*0.0025}+1-0.5^{200*0.001})$$

i.e. 42% discount

Boosted lender ranking for lender

$$1-0.5^{200*\frac{uPINE_{holding}}{uPINE_{supply}}}$$

more exposure to borrowers through the loan offer book. The loan offer book works in a way such that similar offers are put into the same queue and displayed to borrowers in a round robin fashion. However, if a lender owns uPINE, there is a 1 in X chance that the lender will get featured again without being thrown to the back of the end of the queue.

Bonding

Protocol owned liquidity

2% of PINE will be available over 6 months as bonds to liquidity providers of PINE token at an initial coupon rate of approximately 4%, which translates to roughly 0.3% per month. The time to maturity for the bonds will be 14 days. The team reserves the rights to end the bonding program early and burn the remaining tokens or send the remaining tokens to the DAO’s treasury.