Deflationary & Treasury
PrediX buys PRX from the open market using protocol fees and burns it permanently.
Mechanism
Section titled “Mechanism”
Buyback-burn: each week the protocol collects fees in USDC -> swap USDC to PRX (random timing, split txs) -> burn to 0x…dEaD -> supply reduced permanently
Event BuybackExecuted(usdcSpent, prxBurned) is emitted on-chain. Burns are irreversible.
Net deflationary
Section titled “Net deflationary”PRX becomes net deflationary when annual burns exceed annual emissions. Emissions approach zero after year 4 once vesting completes -> post-Y4 net deflationary if volume is sustained.
Insurance fund
Section titled “Insurance fund”A portion of protocol revenue flows to the insurance treasury. Coverage: partial reimbursement in the event of a contract exploit. Payouts require a DAO vote only - no automatic disbursement.
Treasury
Section titled “Treasury”The treasury fund serves 4 use cases:
| Use case | Detail |
|---|---|
| Dev funding | Post-vest team compensation, contributor grants, hackathons |
| Audit | External audit firms, >= 1 round/year |
| LP subsidy | Gauge voting - pools receiving vePRX votes receive subsidy |
| Insurance top-up | Replenish the insurance fund when needed |
Management:
- On-chain multisig 2/3 (Gnosis Safe)
- Spend > $10k -> governance vote
- Quarterly report published publicly
Public dashboard:
- Weekly buyback amount + PRX burned
- Cumulative burn since TGE
- Treasury balance + spend history
- Insurance fund balance