Grow Wealth & Influence with $PWR Governance
Power Token is a monetary instrument that serves as an alternative to fiat money and traditional cryptocurrencies. Unlike fiat currencies, which rely on centralized governance, or algorithmic cryptocurrencies that aim to store value, the Power Protocol introduces a different approach: decentralized community governance, akin to direct democracy but with certain improvements enabled by blockchain technology.
$PWR Tokenomics & Usage
There is a maximum annual inflation rate determined through community governance, either in absolute terms or as a percentage of the current supply. Issued $PWR tokens can be used in the following ways:
- Sold for other cryptocurrencies, with proceeds going directly to the Main DAO treasury.
- Paid as governance participation rewards in the Mother DAO.
- Issued to Child DAOs in exchange for their treasury tokens.
- Paid to community members for activities that benefit the community as a whole.
The goal of the Power Protocol is to create a decentralized monetary asset that performs well relative to other crypto assets. Mother DAO governance aims to increase the value of the $PWR token. It uses treasury funds to invest in profitable ventures — especially within the Power ecosystem DAOs — and directs profits to boost $PWR's value. Direct purchases of $PWR also increase its value, as part of the incoming assets is allocated to the $PWR liquidity pool.
Power DAO Governance Model
The $PWR token also serves as the governance token of the protocol, enhancing its utility and purpose. The ecosystem governance model is based on a feedback mechanism, where a participant's decision-making power depends on their governance track record. This power can increase or decrease (via slashing) based on whether the KPIs set for ecosystem DAOs at launch are achieved.
The main DAO of the ecosystem, called Mother DAO, regulates the issuance of $PWR tokens. It also serves as a last resort for resolving governance deadlocks in Child DAOs. In cases of governance abuse, Mother DAO can intervene and override Child DAO governance.
The goal of Mother DAO governance is to increase the value of the $PWR token. It employs all available tools — such as treasury funds and $PWR token payments for promotional activities — to achieve this objective. To participate in governance, participants must stake $PWR in Mother DAO.
A portion of the yearly inflation is set aside for governance engagement rewards. To earn the maximum rewards, participants need to take part in every DAO vote. The rewards are based on the amount of $PWR staked in the Mother DAO.
Additionally, part of the annual supply is reserved for rewarding Mother DAO participants when governance leads to successful outcomes (e.g., an increase in $PWR token value). These rewards are decided by DAO governance at the start of a KPI period and cannot be changed by later votes. Distribution is based on the amount of staked $PWR and active participation in governance.
Governance power in Mother DAO increases as participants engage in more votes. It begins at a level proportional to the square root of staked $PWR and grows linearly with each vote. If $PWR is transferred to another address, the governance power earned by the original address through voting is not transferred.
KPI rewards are distributed based on the governance power earned, not just the total staked tokens. This ensures that $PWR remains valuable both as a governance tool and a monetary asset.
Child DAOs implement more aggressive slashing mechanisms. These DAOs have clearly defined KPIs at launch, and failure to meet them can result in slashing $PWR tokens. To justify this, participants in Child DAOs can receive treasury funding from the Mother DAO treasury.
What’s in it for You?
By staking $PWR in the Mother DAO, $PWR owners become the primary beneficiaries, actively shaping governance decisions, earning rewards for their contributions, and reaping the benefits of the token's growing value. Whether you aim to drive the future of decentralized finance, invest in a cutting-edge monetary asset, or enhance your wealth, the Power Protocol empowers users with the tools and incentives to succeed.
If you want to learn more about your role in the Power revolution and stay posted on the latest $PWR updates, feel free to join our dedicated Telegram chat. For additional information, please visit the official Power DAO website.
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