2. Tokenomics and Governance

Phezzan Protocol will not launch its token until there is sufficient Product-Market Fit for the following reasons.

1. To let the Phezzan team focus on building a meaningful product in the early stages;

2. To first grow Phezzan Protocol organically;

3. To give the Phezzan team more time to design better tokenomics;

4. To align Phezzan Protocol with like-minded long-term thinking users and investors.

The Phezzan team believes in the power of community and decentralization. Once Phezzan Protocol reaches Product-Market Fit, the Phezzan team will pass the control of Phezzan Protocol to the Phezzan community gradually.

Ideally, Phezzan Token will launch in Q1 2023 alongside Phezzan Protocol V2. Its whitepaper will cover the details.

The value of the Phezzan token will be supported by fees generated by Phezzan Protocol.

A few things the Phezzan team is looking into regarding tokenomics:

1. Token value capture comes from trading fees and buyback/burning;

2. Token utility in trading fee discounts and voting power;

3. Futarchy to encourage responsible voting;

4. Conservative initial token distribution;

5. Flexible inflation/deflation.