# Tokenomics ($POT)

$POT is Stockpot's **booster token**, launched on [Pons
v1](https://docs.ponsfamily.com) (Robinhood Chain's distribution engine):
1B fixed supply, plain untaxed ERC-20, paired with WETH in a locked Uniswap
V3 pool (1% fee tier) created at launch.

:::info
**$POT holders and stakers do not win draws.** Only USDG depositors win.
$POT's role is to make deposits luckier and the pot bigger.
:::

## Utility

1. **Boost your odds (up to 2x).** Stake $POT in
   [BoostStaking](/contracts/boost-staking); your staked TWAB feeds a smooth
   capped curve multiplying your deposit's draw entries:
   `boost = 1 + stake/(stake + K)`, capped at 2x. Raw staked amounts only —
   no market prices enter the weighting.
2. **Trading fees fill the pot.** The Pons pool's creator fees route to
   Stockpot: the **WETH side (~0.35% of volume) funds the weekly pot**;
   the **$POT side is burned** (launch policy; burn-vs-sell is a disclosed
   policy knob). Traders subsidize savers' prizes.

## Fee mechanics

| Parameter | Value | Notes |
|---|---|---|
| Supply | 1,000,000,000 (fixed) | Pons standard; no mint authority |
| Trading tax | None | Pons v1 tokens are plain ERC-20s; revenue comes from LP fees, not taxes |
| Pool | Uniswap V3, $POT/WETH, 1% fee | Locked liquidity, created by Pons at launch |
| Creator fee share | 70% of LP fees ≈ 0.7% of volume | Pons keeps 30% |
| WETH side | → weekly pot via `fundPot` | ≈ 0.35% of volume |
| $POT side | → burned | ≈ 0.35% of volume; policy knob |
| Collection | `PonsFeeCollector` set as the locker's fee redirect | Trust note: Pons' locker owner controls redirect reassignment (disclosed) |

## Prizes are never $POT

Payouts are tokenized stocks (NVDA, TSLA, GOOG, META, …) chosen by the
winner at claim time and bought on Uniswap at settlement. This avoids
circular tokenomics and keeps the pitch concrete: *"deposit USDG, win
NVIDIA."*

## Interest is never $POT either

The depositor 20% of realized yield is paid as claimable interest in vault
shares (1:1 USDG) via TwabRewards — token rewards and vault yield are never
mixed or relabeled.

## Treasury policy

* Labeled treasury wallet, published at launch.
* Rake (default 6% of each pot) funds ops and the war chest.
* **War chest floor**: each of the first six draws pays at least $500,
  topped up from the treasury if organic revenue falls short.

## Upgrade path: Pons v2

Pons v2 (in audit) pays creator fees 100% in the quote asset — both sides of
the fee stream would fund the pot, roughly doubling fee revenue — plus an
optional creator tax. $POT migrates only if v2 ships **audited**; Pons can
attach a v2 market to an existing v1 token, so the upgrade needs no new
token.