# The PGM Token

## Overview

PGM is the native token of the PenguMiner ecosystem. Unlike many game tokens, PGM is **100% dollar-backed** at launch. Every PGM in circulation has real USDT behind it.

## Token Distribution

PGM tokens are distributed on **October 10, 2026** to investors based on their remaining allocation after optional early spending.

### How Investors Receive PGM

1. Investor deposits USDT during the raising period
2. Deposits are **100% frozen** — no one can access them, not even the team
3. Before October 8, 2026, the investor decides how to allocate their deposit:
   * **Keep for PGM** — receive PGM tokens at launch, 1:1 dollar-backed
   * **Spend in-game** — use part of the deposit for Metal and items (no PGM for this portion, but grants Beta Access at $1,000+)
   * **5-Year Plan** — lock part of the deposit until October 10, 2031 for **double PGM** allocation
4. On October 10, all remaining (non-spent, non-locked) allocation is distributed as PGM

## The Price Floor Mechanism

This is what makes PGM fundamentally different from other game tokens.

### At Launch (October 10, 2026)

```
Total raised USDT:
├── 10% → PGM/USDT Liquidity Pool (establishes starting price: 0.001 USDT)
└── 90% → Reserve Pool (the "Buyback Wall")
```

### How the Floor Works

The Reserve Pool has one job: **if PGM drops below 0.001 USDT, the contract buys PGM until the price is restored.**

This is not a promise. It is a smart contract that executes automatically. The floor cannot be removed, adjusted, or overridden.

### What Happens When PGM is Spent In-Game

When a player deposits PGM into the ecosystem (for Metal and items):

1. The contract knows this PGM no longer needs to be backed
2. The USDT that was backing it becomes **free**
3. Freed USDT flows into DeFi liquidity → generates yield → buys PENGU → rewards for all players

**The more PGM gets used in the game, the more PENGU yield is generated for everyone.**

### The Endgame

Over time, as PGM circulates through the game:

* More USDT gets freed from the reserve
* More yield is generated
* Eventually, when all reserve USDT has been freed, the price floor of 0.001 USDT becomes **permanent and self-sustaining** — because there is no more PGM that needs backing

The floor can only go up, never down.

## The Dual Pool System

Instead of simply holding USDT in reserve, PGM operates a dual liquidity pool structure:

```
Pool 1: PGM/USDT — Primary trading pair, backed by reserve
Pool 2: PGM/ETH — Secondary trading pair, built from ecosystem revenue
```

### Why Two Pools?

ETH/USDT fluctuates constantly. With PGM sitting in both pools:

* Arbitrage traders naturally trade between the pools whenever ETH/USDT moves
* Every arbitrage trade generates **trading fees on both pools**
* These fees flow back into the ecosystem
* The ecosystem earns passive revenue from market volatility — without doing anything

This turns market volatility from a risk into a revenue source.

## PGM Utility

### In-Game Deposit Bonus

Depositing PGM into the ecosystem grants **20% more Metal** compared to depositing the equivalent in USDT or ETH.

This creates a direct incentive to acquire and use PGM:

* Players who hold PGM get more equipment upgrades per dollar
* The bonus is significant enough to matter but not so large that USDT deposits feel punished
* PGM flows back into the pools, maintaining liquidity

### Governance

PGM holders can vote on ecosystem decisions through the DAO:

* Treasury management strategy
* Game balance adjustments
* New feature prioritization
* Liquidity deployment decisions

### Exclusive Cosmetics

Staking PGM unlocks exclusive skins, visual effects, and cosmetic items. These are purely visual — no gameplay advantage — but serve as status symbols within the community.

## Token Flow Cycle

```
Investor buys PGM (USDT frozen as backing)
        ↓
Player deposits PGM in-game (20% Metal bonus)
        ↓
PGM returns to liquidity pools
        ↓
Backing USDT is freed
        ↓
Freed USDT → DeFi liquidity → Yield
        ↓
Yield → Buy PENGU → Fish Generator rewards
        ↓
Players earn PENGU → Some re-invest
        ↓
Cycle continues
```

PGM is designed to circulate, not to die. Every token that moves through the game strengthens the ecosystem for everyone.
