The very first understanding on Pontoon protocol is that, it is driven by the liquidity providers which aims to solve the problem of fragmented tokens in the ecosystem thereby leveraging the users and its community to move ahead with a self sustaining and to achieve composability through a true DEFI mecahnism.
Did we know that Pontoon is accomplishing the outcome by their TOON utilities? Lets try to understand more on $TOON.
The key utility of $TOON is to be used for the governance of the Pontoon protocol keeping in mind the decentralised nature and fair power-sharing vision of the protocol, aligning all stakeholders.
Token holders will have privileges related to the governance of the protocol allowing them to vote on and enact protocol improvement proposals on areas like which chain to be supported next, incentive structure etc.
Incentivies for LP’s and Relayers
$TOON will be used to incentivise the liquidity providers via periodic distribution. This is in line with the community first mechanism of Pontoon and ensures a fair distribution model as $TOON is distributed to the key participants of the protocol who should be an important voice in the governance of the same.
Proof of stake relayer networks
$TOON will also be used as an incentivisation mechanism for the node operators of the decentralised relayer network which are integral to the gasless and instant transaction capabilities of the protocol. Similar to the distribution of $TOON to liquidity providers, this method allows the distribution of the governance token to the key stakeholders.
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