โทเคโนมิกส์ Pentagon Games (PEN)

Overview

Penguin (PENGU) is the native token associated with the Pudgy Penguins ecosystem, primarily launched on the Solana blockchain, with additional deployments as an ERC-20 token on Ethereum and Abstract via LayerZero OFT technology. The token is designed as a meme token with no featured or planned utility beyond being exchanged or held for speculative purposes. There are no mechanisms for earning fees, additional tokens, or compensation by holding or interacting with the token, and it does not confer any governance, profit-sharing, or legal rights.

Issuance Mechanism

• Initial Distribution:
  PENGU was primarily issued 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, Pudgy Penguin Soulbound token holders, and FTT tokenholders.
• Total Supply:
  The maximum supply is approximately 88.89 billion PENGU tokens.
• Airdrop Allocation:
  About 44.77 billion PENGU (~50.37% of the total supply) were distributed through the airdrop.

Allocation Mechanism

The allocation of PENGU tokens is as follows:

• Team and Company Allocations:
  Both are subject to a one-year cliff and a three-year vesting schedule.

Usage and Incentive Mechanism

• Primary Use:
  PENGU is a meme token with no planned or current utility beyond being traded or held. It is not used for staking, governance, or as a medium of exchange within a protocol.
• Incentives:
  There are no mechanisms for earning rewards, fees, or additional tokens by holding or using PENGU. No staking, liquidity provision, or yield mechanisms are available or planned.
• Acquisition:
  PENGU can be acquired via airdrop (for eligible users), or purchased on centralized exchanges (e.g., Binance, Coinbase, Bybit) and decentralized exchanges (e.g., Raydium, Orca, Meteora).

Locking Mechanism

• Team and Company Tokens:
  Subject to a one-year cliff and a three-year vesting schedule. This means these tokens are locked for the first year, after which they vest linearly over the next three years.
• No Locking for Airdrop/Community:
  Tokens distributed via airdrop or to the community are not subject to any lock-up or vesting.

Unlocking Time

• Team/Company Unlocking:
  • Cliff: 1 year after token generation event (TGE)
  • Vesting: Linear over the following 3 years
• Airdrop/Community:
  Immediately available upon claim.
• Unclaimed Airdrop:
  Unclaimed tokens after the claim period are burned (e.g., over 12 billion PENGU, ~13.69% of supply, were burned on Feb. 5, 2025).

Additional Notes

• No Staking or Governance:
  There are no staking, liquidity provision, or governance mechanisms associated with PENGU.
• No Buyback/Burn Mechanism:
  No ongoing or planned token burn or buyback mechanisms, aside from the one-time burn of unclaimed airdrop tokens.
• No Open-Source Development:
  The development of PENGU is not open-source, and there is no public governance process.

Summary Table

Implications and Context

• Market Impact:
  The large airdrop and immediate liquidity for most tokens led to significant volatility at launch, with price swings and a notable one-time burn of unclaimed tokens to reduce supply.
• Vesting for Team/Company:
  The vesting schedule for team and company tokens is designed to align long-term interests and reduce immediate sell pressure, a common practice in token launches.
• No Utility or Governance:
  The lack of utility, staking, or governance means PENGU is primarily a speculative asset, and holders should not expect protocol-driven value accrual or participation rights.
• Transparency:
  While allocation percentages and vesting schedules are disclosed, specific allocation addresses are not public, and the project is not open-source.

Conclusion

Penguin (PENGU) tokenomics are straightforward: a large, meme-oriented airdrop with most supply immediately liquid, and team/company allocations locked and vested over four years. There is no protocol utility, staking, or governance, and the token functions as a speculative asset. The only significant supply reduction mechanism was a one-time burn of unclaimed airdrop tokens. Investors should be aware of the lack of ongoing incentives or utility and the implications of large, unlocked supplies on market dynamics.