Pryzm Tokenomics: Empowering a Thriving, Community-Led Ecosystem

The Pryzm token ($PRYZM) will start community price discovery on July 14th at app.pryzm.zone. See the tokenomics details below.

Pryzm’s tokenomics are built on transparency, fairness, and sustainable growth. With a genesis supply of 1,000,000,000 PRYZM, the distribution model is designed to foster broad participation and align incentives for builders, users, and the wider community.

About Refracted Labs

Pryzm is developed by Refracted Labs, whose team brings decades of experience from traditional finance — including roles at Goldman Sachs and JPMorgan in fixed income and derivatives trading. The team has also contributed to the launch of several major DeFi protocols. Refracted Labs is committed to building innovative DeFi products that connect established finance with decentralized technology.

Security & Audits

The Pryzm chain has undergone comprehensive security audits by leading firms, including Certik and Oak Security. These independent reviews help ensure the protocol’s robustness and the safety of user funds.

Distribution Overview

Circulating Supply at Launch

• At launch, only the 10% Photons and approximately 1% Stakedrop allocations are in circulation, both currently liquid staked with a ~120-day unbonding period.
• These tokens cannot be immediately sold in the PRYZM-USDC pool but can be used to provide liquidity in the Pryzm Yield LP and, after launch, the Pryzm Base Pool when paired with PRYZM bought during the LBP.
• Only tokens in supply after the token launch (LBP) can be used for immediate liquidity. Historically, about 50% of LBP tokens are sold, so circulating supply is expected to be around 15% (approximately 150 million PRYZM) after launch and liquid circulating supply will only be the tokens bought out of the pool during launch.
• PRYZM airdrop holders who hold PRYZM derivatives have the option to stake their LP tokens for rewards, or combine them with PRYZM to access higher rewards by providing liquidity in the Base Pool after launch.
• PRYZM holders will also be able to participate in governance votes, including decisions to reduce the 120-day unbonding period for cPRYZM, which could make liquid staking more flexible and attractive.
• PRYZM governance choose whether PRYZM is inflationary or deflationary.
• Current circulating and liquid circulating supply can be tracked at any time on the Pryzm launch page.

Community-Centric Governance

• All major supply dynamics and allocation decisions are determined by community vote, giving real power to PRYZM holders.
• This governance structure fosters transparency and adaptability, ensuring the project evolves in line with the community’s vision.

Real Utility for Holders

• Protocol Control: PRYZM holders influence vital chain parameters, directly shaping the network’s future.
• Treasury Module: Earns fees from all on-chain activities — including yield splitting, swapping, and liquid staking tokens.
• Flexible Fee Usage: The community decides how fees are used: held for yield, distributed, burned, or allocated to the community pool.
• Dynamic Supply: PRYZM’s supply can become inflationary or deflationary, based on governance decisions, providing flexibility to adapt to changing needs.

Roadmap for Growth

Pryzm token holders are positioned to benefit directly from the platform’s ongoing innovation. With each new product launch across The Interchain and Ethereum, holders will share in revenue and fee generation from these protocols and receive ownership stakes via airdropped tokens in the new products being built and launched.

Q3

• Governance & Protocol: Community votes on cPRYZM unbonding period; choose security layer
• EVM Integration: MetaMask support; deploy Solidity dApps
• Trading Infrastructure: SEAL: Order Book for gasless, cross-chain orders
• Money Markets: SQUIRREL: Fixed-rate, fixed-term, no oracle, no liquidation loans
• Liquidity & NFTs: LP restaking; yield-bearing NFTs

Q4

• Native Bitcoin Integration: Trustless BTC yield via Babylon bridge
• Options & Derivatives: HEDGEHOG: Gasless puts/calls on any asset

Ongoing

• Ecosystem Growth: New partnerships; onboarding assets
• Token Listings: PRYZM listings on major DEXs and CEXs
• Economic Impact: Unified DeFi: yield tokenization, derivatives, lending, cross-chain liquidity, advanced trading

This approach ensures that Pryzm holders are not just participants, but true stakeholders in the expanding ecosystem — gaining both immediate and long-term value as the platform grows.

Why This Matters

Pryzm’s approach means every participant has a stake in the network’s direction and success. With no allocations to VCs or insiders, the focus remains entirely on building value for the community. The transparent, flexible, and utility-driven tokenomics model sets Pryzm apart as a project where everyone can play a meaningful role in shaping the future of decentralized finance.

This is more than just a token — it’s a foundation for sustainable, community-powered innovation.

Pryzm Tokenomics Explained

Genesis Supply:

Pryzm launched with a fixed genesis supply of 1,000,000,000 PRYZM tokens. Future inflation or deflation is determined by on-chain governance, giving holders direct control over supply dynamics.

Team — 20%

• Allocated to core contributors.
• Locked for 6 months after the Liquidity Bootstrapping Pool (LBP).
• Vests linearly until month 18.
• No allocations for VCs, private sales, or influencers — ensuring fairness and alignment with the community.

Stakedrop — 5%

• Ongoing rewards for users delegating to Pryzm validators.
• Delegators now receive 40 PRYZM per USD of commission paid (previously 10).
• Airdrops are distributed weekly.
• ~1% of the total supply has been distributed so far; the campaign continues until the full 5% is allocated.

Photons — 15%

• Pryzm’s signature user reward program.
• 10% distributed in the first two seasons.
• Next 5% to be distributed by early September 2025.

LBP (Liquidity Bootstrapping Pool) — 10%

• Used for Pryzm’s price discovery event and public sale.
• Enabled fair, transparent price discovery and broad public participation.
• Unsold tokens are returned to the Foundation for future ecosystem use.

Foundation & Ecosystem — 50%

• Managed by the Pryzm Foundation.
• Funds grants, incentives, user campaigns (including OpDrop and OGDrop), and ecosystem expansion.
• All spending is transparent and subject to governance.

Governance & Supply Dynamics

• The community controls all major parameters: Emission rates Inflation/deflation and more.
• Allocation of ecosystem funds

In summary:

Pryzm’s tokenomics are designed for transparency, fairness, and long-term sustainability — empowering holders with real control and aligning incentives across the ecosystem.

Pryzm Tokenomics FAQ

How can I participate in the Stakedrop?

Delegate to Pryzm validators. Your rewards are proportional to the commission you pay — currently, you receive 40 PRYZM for every USD of commission paid. Stakedrop rewards are distributed weekly, and the campaign is ongoing.

What are Photons and how do I earn them?

Photons are tokens allocated to early users through seasonal reward campaigns, designed to align active users with long-term token holders. The final Photon season concludes in August 2025. Each campaign has its own participation criteria, which are announced in advance.

What is the LBP and how does it work?

The Liquidity Bootstrapping Pool (LBP) is Pryzm’s public price discovery event. 10% of the total PRYZM supply was made available for public purchase through the LBP. Any tokens not sold during the event are returned to the Foundation wallet for future ecosystem development.

How is the Foundation & Ecosystem allocation used?

The Foundation & Ecosystem allocation funds grants for builders, user incentives, partnerships, and additional community reward campaigns.

Who controls Pryzm’s supply and emissions?

All major supply and emission decisions — including inflation, deflation, and fund allocations — are made by PRYZM token holders through on-chain governance. This ensures the community has full control over the protocol’s future.

Are there any insider or VC allocations?

No. Pryzm has no allocations for venture capitalists, private sales, or influencers. This ensures a level playing field and maximizes fairness for all participants.

What is OpDrop?

OpDrop is a community rewards program that allows users to purchase discounted PRYZM tokens — typically at around 50% below the current market price — when specific milestones are achieved. Eligibility and purchase order are determined by the badges users have earned, rewarding active and engaged community members.

What is OGDrop?

OGDrop is a special airdrop for Pryzm’s earliest community members — specifically, those who migrated to the Pryzm community in 2022 and have been actively supporting the project. OGDrop tokens will unlock as key chain milestones are reached, with both milestone selection and distribution timing shaped by community input and governance. Only users with a proven record of active participation, as measured by badges earned, will be eligible.