Tokenomics
What the token is, what it funds, and the planned utility — none of which is live as protocol economics today.
Tokenomics
Paraloom launched a community token to fund the path to mainnet — the audit, the MPC ceremony, and genesis validator incentives. This page is the canonical reference for what the token is and isn't. The launch rationale is in Why a token, now.
The token is not protocol economics. Validator stake and fees are SOL-denominated and unchanged. The token confers no yield and no protocol rights today. The utility described under Planned utility is roadmap, not live.
The token
| Value | |
|---|---|
| Mint | Br1JxELQYP34YdRW4gbEPLasHEtyz8eCmT2FvmnYpump |
| Supply | Fixed; mint authority revoked |
| Launch | pump.fun fair launch |
Allocation
- 93% public — fair launch on pump.fun. No presale, no private round, no insider allocation. Same bonding curve, same time, for everyone.
- 7% treasury — locked via Streamflow at launch: a 7-month cliff (fully locked, nothing unlocks until then), followed by unlocks. View the lock on Streamflow.
There is no founder allocation outside the treasury, and the treasury is earmarked, vested, and on-chain verifiable — not a founder wallet.
What the treasury funds
In priority order:
- Security audit of the privacy circuits, the Anchor program, and the BFT path. A hard mainnet prerequisite.
- MPC ceremony — funding the coordinated, multi-contributor Groth16 trusted setup so mainnet proving keys come from a real ceremony with a public transcript.
- Genesis validator incentives — bootstrapping a decentralized validator set before mainnet activation.
No founder cut from protocol fees. Fee economics stay exactly as documented in Consensus and the Validator guide. The token funds the road to mainnet; it does not rewrite how the protocol pays its validators.
Planned utility
Not implemented. Validator stake today is 1 SOL on-chain (MIN_VALIDATOR_STAKE in lib.rs). The following is the intended mainnet role, tracked as roadmap.
The token's intended role at mainnet is network security and governance — not yield:
- Security staking. Becoming a validator requires staking the token, alongside SOL (dual-stake), so the token is part of the collateral at risk under slashing. This is a genuine demand sink — anyone who wants a validator slot must hold and lock it. It is not a fee-share or yield instrument; validator fees remain SOL-denominated.
- Governance. Voting on treasury spend and protocol parameters (fee levels, supported denominations, the validator-set rules).
Why dual-stake, not token-only
A token-only stake would weaken security: an attacker could buy a low-cap token cheaply to acquire validator slots, and slashing a volatile asset is a weak deterrent. Pairing the token with SOL collateral (and reputation gating, see Consensus) keeps the cost of attacking the network high while still giving the token a real, enforced role.
No yield promise
Staking secures the network and carries slashing risk. It is not a passive-income product. The token accrues no protocol fees; fees flow to validators in SOL as documented.