Power Protected Growth Token (Power PGT)
Summary (TL;DR)
Fixed-term ERC-20 Exchequer Note with a downside floor (max 75% drawdown) and prize-linked upside.
At maturity, upside (if any) is split between (i) a baseline pro-rata upside paid to all holders and (ii) a configurable prize pool distributed by a provably fair on-chain drawing across 5 reward tiers.
Top tier can pay up to a 10,000× tier multiplier of the unit prize (see Reward Tiers); every holder still receives at least the protection floor.
Protection settles in LP tokens at maturity using a 72-hour VWAP to determine settlement amounts.
Designed for already-launched tokens to run repeatable, time-boxed campaigns—think TGE magic without the sell pressure—while compounding deep, stable on-chain DEX liquidity as a deliberate, cumulative outcome.
What it is
A Power PGT gives buyers a defined principal floor at maturity (capped at a 75% drawdown) and converts upside into two pieces: a baseline pro-rata upside for all holders and a jackpot-style prize pool paid to randomly selected winners across 5 tiers, with the highest tier using a 10,000× multiplier of the series’ unit prize.
Issuance, collateralization, and drawings are on-chain and auditable. For established tokens, Power PGTs add event energy and net-new user acquisition without perpetual emissions, while each campaign deepens and stabilizes on-chain DEX liquidity.
Who it’s for
Issuers (projects & treasuries):
Best when the goal is event energy and net-new user acquisition
Galvanize dormant audiences while keeping a capped, budgetable risk profile. Each cycle still compounds deep, stable on-chain DEX liquidity.
Buyers (allocators & users):
Participants who value a clear floor plus lottery-like upside.
Great for community campaigns, smaller tickets, and attention-driven cohorts that respond to jackpots—while still protecting principal at maturity.
Key Properties
Term: Fixed maturity date (e.g., 3–12 months). Protection applies only at maturity.
Protection: Partial, up to 75% drawdown. If the token is down ≤ 75% at maturity, the holder redeems LP tokens worth the original principal. If the drawdown exceeds 75%, the holder bears losses beyond the floor but is still strictly better off than unprotected spot over the same move.
Upside: Split at maturity:
Baseline pro-rata upside to all holders, and
Prize pool upside distributed by on-chain drawing across 5 reward tiers (top tier uses a 10,000× multiplier of the unit prize).
Settlement asset:
Floor pays in LP tokens backed by on-chain collateral (holder may withdraw to constituents).
Baseline upside and prize payouts settle in TOKEN.
Price measure: 72‑hour VWAP ending at the maturity timestamp to reduce manipulation risk.
Collateral structure: Two token tranches from treasury: (A) LP tranche to pair with buyer USDC, (B) Reserve tranche to fund upside.
Liquidity outcome: Each note adds to deep, stable on-chain DEX liquidity as a designed, cumulative consequence of the collateral plan.
Creation Mechanism
Issue Notes (ERC‑20). Project publishes terms and sells Power PGT to buyers.
Form LP for the floor. Pair buyer stablecoins/ETH with treasury tokens to create project-owned LP that funds the floor (on-chain escrow).
Define upside split. Specify the prize-pool shares (0–100%) of upside accrual and the baseline share (1−s); set reward tiers, multipliers, winner counts, and weighting rules.
Post Collateral. LP tokens are escrowed on‑chain to back the floor.
Accrue Rewards during the term. As price appreciation accumulates relative to the reference, the protocol accounts for baseline upside and allocates s·(upside) to the prize pool per the published rules.
Settle at Maturity. Use the 72-hour VWAP to determine drawdown (for floor) and realized upside (for baseline + prize pool). Run the on-chain drawing and pay winners; all holders receive at least the floor.
Configurable Parameters (Issuer “knobs”)
Term (date/time)
Protection floor (any value up to the 75% drawdown limit)
Upside split: prize-pool share s and baseline share (1−s)
Reward tiers: multipliers, number of winners per tier, tier weights
Participation/cap rules for total upside accrual
AMM/pool selection for LP tranche
Payoff Logic at Maturity
Let P₀ be the reference price (at issuance or per terms) and Pₘ the 72-hour VWAP immediately prior to maturity.
A) Token up or flat (Pm ≥ P0)
Baseline pro-rata upside: Each holder receives (1−s) × UpsideParticipation × Notional × max(0, (Pₘ−P₀)/P₀), allocated pro-rata.
Prize pool: s × UpsideParticipation × Notional × max(0, (Pₘ−P₀)/P₀) × (TotalNotional) funds the pool. The on-chain drawing assigns winners across 5 tiers and pays each winner TierMultiplier × UnitPrize (see Reward Tiers; total paid is capped by the pool).
Floor is not used (token did not draw down beyond the floor).
B) Token down, drawdown ≤ 75%
Full principal protection. Holder redeems LP tokens worth the original principal (paid in LP), regardless of the exact LP value.
C) Token down, drawdown > 75%
Protection capped. Holder redeems LP tokens per the protection schedule; any loss beyond the 75% floor is borne by the holder. Outcome remains strictly better than unprotected spot over the same move.
Protection reassigns tail risk from buyer to issuer and is funded by the escrowed LP collateral. It does not create free money.
Reward Tiers (5-tier structure with 10,000× top multiplier)
Tier multipliers scale a “unit prize” u so that the sum of all tier payouts does not exceed the prize pool. Let nᵢ be the number of winners and mᵢ the multiplier for tier i. The protocol computes:
u = PrizePool / (Σᵢ nᵢ·mᵢ)
Each winner in tier i receives payout = mᵢ · u (paid in the series’ payout asset). Example multipliers and counts (illustrative; issuers configure these):
• Tier 1 — Jackpot: m₁ = 10,000×, n₁ = 1 • Tier 2 — Major: m₂ = 1,000×, n₂ = 5 • Tier 3 — Large: m₃ = 100×, n₃ = 50 • Tier 4 — Medium: m₄ = 10×, n₄ = 200 • Tier 5 — Starter: m₅ = 2×, n₅ = 500
Numerical Walkthrough (illustrative)
Setup
Notes sold: 100,000
Price per note: 100 USDC
Token starts at $1.00 and ends at $1.80 at maturity (+80%)
Participation: 100%
Floor: 50% (you’re protected against drawdowns up to 75%)
Five reward tiers (more than one winner at every tier):
Tier 1 (Jackpot): 1 winner × 10,000×
Tier 2 (Major): 20 winners × 1,000×
Tier 3 (Large): 200 winners × 100×
Tier 4 (Medium): 2,500 winners × 10×
Tier 5 (Starter): 12,500 winners × 2×
Total upside created by the rally
Total notional = 100,000 notes × 100 USDC = 10,000,000 USDC
Upside from price move = 10,000,000 × 80% = 8,000,000 USDC
Option A — 100% prize pool (no baseline payout)
All of the 8,000,000 USDC goes to the prize pool.
Because the tier multipliers and winner counts add up neatly, the base prize works out to 80 USDC.
Each tier pays a multiple of that base prize:
Per-winner prizes
Tier 1: 10,000 × 80 = 800,000 USDC (1 winner)
Tier 2: 1,000 × 80 = 80,000 USDC (20 winners)
Tier 3: 100 × 80 = 8,000 USDC (200 winners)
Tier 4: 10 × 80 = 800 USDC (2,500 winners)
Tier 5: 2 × 80 = 160 USDC (12,500 winners)
Sanity check: those payouts add up to the full 8,000,000 USDC pool. Key takeaway: a jackpot winner turns a 100 USDC note into 800,000 USDC (that’s the 10,000× headline, scaled by the +80% rally).
Option B — 50% prize pool, 50% baseline (everyone gets something)
Split the 8,000,000 USDC upside evenly:
4,000,000 USDC → prize pool
4,000,000 USDC → baseline paid to everyone
Baseline (everyone):
4,000,000 / 100,000 notes = 40 USDC per note
Prize pool:
New base prize is 40 USDC (half of Option A because the pool is half as big)
Per-winner prizes
Tier 1: 10,000 × 40 = 400,000 USDC (1 winner)
Tier 2: 1,000 × 40 = 40,000 USDC (20 winners)
Tier 3: 100 × 40 = 4,000 USDC (200 winners)
Tier 4: 10 × 40 = 400 USDC (2,500 winners)
Tier 5: 2 × 40 = 80 USDC (12,500 winners)
Sanity check: those prizes total 4,000,000 USDC, and the other 4,000,000 USDC is the 40 USDC baseline to every note. Key takeaway: the jackpot still maps cleanly to the 10,000× headline scaled by the +80% rally and 50% pool share → 400,000 USDC on a 100 USDC note, while non-winners still collect the 40 USDC baseline.
Risks & Considerations
Residual tail risk: Losses beyond the 75% floor are borne by the holder.
Prize variability: Prize outcomes are stochastic; expected value equals the configured share s of upside, but individual results vary. Realizing the full 10,000× top-tier payout requires a sufficiently large prize pool as shown above.
Weighting & fairness: Drawing uses published, auditable rules (e.g., stake/time weighting) and a provably fair randomness source; ensure users understand eligibility criteria.
Smart-contract risk: Contracts are immutable/audited, but risk ≠ 0.
Liquidity & slippage: AMM/pool depth affects realized unwind when burning LP.
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