[PIP #8] – Adjustment of PNP Emission Rates for liquidity Pools


Penpie is dedicated to enhancing yield and participation for users of Pendle Finance across various blockchain networks, such as Ethereum, Arbitrum, BNB Chain, and OP Mainnet. The governance and revenue-sharing model of Penpie relies on the PNP token, which can be locked as vlPNP to get rewards and voting rights. In order to support the long-term value of PNP, we propose the removal of PNP token emission rates allocated to liquidity pools on Penpie. Currently set at 800 base points, reducing this rate by 100% to 0 points will gradually increase the scarcity of PNP over time.


The PNP token is fundamental to the Penpie ecosystem, providing significant advantages through its lock-in mechanism as vlPNP. Penpie’s primary focus is to increase its vePENDLE holdings on Pendle Finance, enabling boosted yield opportunities for LPs, providing cost-effective voting power, and attracting more TVL to drive platform revenue. The PNP token primarily incentivizes platform pools, including PNP/mPENDLE pools across multiple chains and DEX platforms. Implementing a lowered emission rate to enhance the value and scarcity of PNP aligns with Penpie’s long-term vision, supporting its growth moving forward. To achieve this, we propose removing PNP emission rates allocated to liquidity pools, reducing them from 800 base points to 0 base points. Liquidity pools on Penpie already benefit from enhanced yields derived from our accumulated vePENDLE, and our primary focus is to increase Penpie’s vePENDLE treasury, naturally elevating the offered boosted yield and TVL of the pools.


Remove the overall PNP emissions for liquidity pools, reducing the emission rate from 800 base points to 0 base points.