Tokenomics de Pentagon Games (PEN)

Overview

Penguin (PENGU) is the fungible token associated with the Pudgy Penguins ecosystem. It is primarily a meme token with no featured or planned utility beyond being exchanged or held for speculative purposes. The token exists as an SPL token on Solana and as an ERC-20 token on Ethereum and Abstract, bridged via LayerZero OFT technology. The maximum supply is approximately 88.89 billion PENGU.

Issuance Mechanism

• Initial Distribution:
  PENGU was distributed via a large-scale airdrop to holders of Pudgy Penguins, Lil Pudgys, and Pudgy Rods NFTs, as well as to "OG Ethereum and Solana wallets," DeFi participants on Solana and Ethereum, Pudgy Penguin Soulbound token holders, and FTT tokenholders.
• No Ongoing Issuance:
  There is no evidence of ongoing inflation, mining, or staking-based issuance. The token supply is fixed post-airdrop, with no mechanisms for further minting or emission.

Allocation Mechanism

The initial allocation of the ~88.89 billion PENGU tokens is as follows:

• Airdrop:
  Approximately 44.77 billion PENGU (~50.37% of supply) was allocated to the airdrop.
• Team & Company:
  Team and company allocations are subject to vesting (see below).
• Liquidity:
  Tokens allocated for liquidity provision on exchanges.
• Burn:
  Over 12 billion unclaimed airdrop tokens (~13.69% of supply) were burned on February 5, 2025.

Usage and Incentive Mechanism

• Primary Use:
  PENGU is a meme token with no featured or planned utility beyond being exchanged or held for speculative purposes.
• No Staking or Rewards:
  There are no staking, liquidity provision, or reward mechanisms. Tokenholders do not earn fees, dividends, or additional tokens by holding or using PENGU.
• No Governance:
  PENGU does not confer governance rights. The project team retains full control over protocol development and treasury management.
• No Claims:
  Tokenholders have no claims on capital, profits, or voting rights in Pudgy Penguins or its associated entities.

Locking Mechanism

• Team & Company Vesting:
  • Team: ~15.82 billion PENGU (17.80%) allocated to the current & future team, subject to a one-year cliff and a three-year vesting schedule.
  • Company: ~10.20 billion PENGU (11.48%) allocated to the company, also subject to a one-year cliff and a three-year vesting schedule.
• No Public Locking:
  There are no public staking or locking mechanisms for regular users.

Unlocking Time

• Airdrop Claim Period:
  The airdrop claim period was originally set to last until March 9, 2025, but was ended early on February 9, 2025, due to bot activity.
• Vesting for Team & Company:
  • Cliff: 1 year from token launch (December 17, 2024).
  • Vesting: Linear over the following 3 years.
• Burn of Unclaimed Tokens:
  Unclaimed airdrop tokens were burned on February 5, 2025.

Additional Notes

• No Buyback or Ongoing Burn:
  There are no ongoing or planned buyback or burn mechanisms beyond the one-time burn of unclaimed airdrop tokens.
• Concentration:
  As of April 25, 2025, the top 10 Solana wallets held ~65.84% of the supply, with the second-largest being a burn address.

Summary Table

Implications and Limitations

• Speculative Nature:
  PENGU is designed for speculation, not utility or governance.
• Centralization Risk:
  High concentration among top wallets and team/company allocations may pose centralization risks.
• No Yield or Utility:
  Holders should not expect yield, governance, or platform utility from PENGU.

In summary: Penguin (PENGU) is a fixed-supply meme token with a one-time airdrop-based distribution, no ongoing issuance, no utility or incentive mechanisms, and vesting for team/company allocations. Its economics are simple and speculative, with no mechanisms for staking, governance, or yield.