$PAWN is the governance and utility token for Pawnfi Protocol. As an essence of Pawnfi DAO, the main purposes of $PAWN token are designed to incentivize liquidity contributors on the Pawnfi platform as well as engaging as many long-term supporters as possible in the governance of the protocol.
Liquidity providers on the Pawnfi platform receive $PAWN for build-up of liquidity. This ensures that the protocol is able to continue offering loans and enough liquidity. For more information on the providers' reward, see Incentive Mechanism.
With time-weighted voting and value accrual mechanisms, $PAWN currently has three main use cases: voting, boosting and earning safety incentives. These three things will require you to place your $PAWN in Pawnfi SAFE and acquire voting power.
Voting power are your $PAWN placed in SAFE - it is one of the most important and exciting incentives to hold $PAWN token. By placing $PAWN in SAFE for a period of time, it will not only boost your token reward, but maximize your revenue on the Pawnfi platform.
$PAWN can be placed in Pawnfi SAFE to get voting power. It is a community-led proposal introduced an up to 50% distribution on all platform fee from Lending Market, which are then distributed to voting power holders.
One of the main incentive for holding $PAWN is the ability to boost your rewards on provided liquidity. Placing $PAWN in SAFE allows you to acquire voting power to participate in the DAO and earn a boost of up to 2.5x on the liquidity you are providing on Pawnfi.
Once $PAWN holders obtain voting power, they can start voting on gauge weight, various DAO proposals and pool parameters.
$PAWN is NOT claimable yet
To align with the Token Generation Event (TGE) timeline on DEX/CEX platforms, all the $PAWN rewards earned through Pawnfi modules, though visible and trackable, will be claimable at a later date. Rest assured, we will promptly notify you via our official social media channels when the rewards become accessible. We appreciate your understanding and support as we work towards creating a seamless experience on Pawnfi.