$PRIVSWAP. Fixed, and shrinking.

What it is, in one paragraph

$PRIVSWAP is the token the protocol's economics run through. It has a fixed supply of one billion. It is not a governance token, it does not vote on anything, and it does not entitle the holder to a share of anything. What it does is receive value: the fees the venue earns are used to buy it on the open market and destroy what is bought, which reduces supply permanently and does so as a matter of arithmetic rather than policy.

Supply

1,000,000,000Created once at launch. No function exists to create more.

Direction

Down onlyBuybacks remove tokens from circulation permanently.

Launches on

PonsA fixed supply launch with liquidity locked at graduation.

Where it launches, and why there

The token launches on Pons, a launchpad on Robinhood Chain. That choice was made for reasons that are mostly about honesty rather than strategy. A launchpad launch comes with rules that apply to us as much as to anyone else, which is exactly the point.

The supply is fixed at one billion and no portion of it is reserved for us before trading opens. There is no private round, no allocation to a treasury that we quietly control, and no vesting schedule that will be revealed later. If we want to hold the token, we buy it on the same market as everyone else, at the same price, with everyone watching.

Liquidity locks when the launch graduates, and it does not unlock. That is not a promise we are making. It is a property of how the launchpad works, which is a much better guarantee than a promise.

Where the value comes from

This is the part worth reading carefully, because it is where most tokens in this category become vague.

The venue charges a fee. It is charged once, on entry, on the asset being sent, and it is shown before anyone approves anything. That fee is not sent to a company account. It goes to a vault, where it accumulates.

When the vault holds enough to be worth acting on, it is spent buying $PRIVSWAP from the open market. What is bought is then destroyed, permanently and irreversibly, so that it can never be sold back into the market by anyone, including us. The vault refills, and the process repeats.

Two consequences follow, and both are the point. First, the share that goes to buyback creates buying pressure on the token, automatically, without anyone deciding to do it that day. Second, the supply of the token falls over time, so the same amount of activity is spread across fewer tokens.

What follows from that is a matter of market behaviour and we are not going to pretend to predict it. The mechanism is arithmetic. The price is not, and anyone who tells you a burn schedule implies a price is selling you something.

Why a burn, and not a dividend

Because a burn is a fact and a dividend is a promise. A destroyed token is verifiable by anyone with a block explorer, immediately, without trusting an intermediary to have done what they said. Nothing needs to be distributed, nothing needs to be claimed, and nothing needs to be reported. The effect lands on every holder at once, including the ones who never opened the app.

The split, and why it is written down

Most of what the protocol keeps buys the token back and destroys it. The rest pays for audits, legal work, and the servers the mesh runs on. Hiding that second part would be easy and would make the first part sound better. It is stated here because a promise about other people's money should survive being read closely.

Two numbers in the contract make the promise checkable rather than a claim on a page. The buyback share defaults to seventy percent, and it can never be set below fifty. That floor is a constant in the bytecode, not a policy. No key, no proposal and no mistake can push it lower, and anyone can read it before deciding to hold anything.

Changing the share takes three days. It is announced when it is proposed, not when it takes effect, and anyone may execute it once the wait is over. That means the owner cannot propose a change and then quietly decline to apply it.

What it is not

It is not a security

It does not represent equity, it does not pay a return, it does not entitle the holder to profits, and it does not come with any expectation of profit derived from our efforts as a common enterprise. It is a token with a fixed supply and a burn mechanism. Nothing on this site should be read as an offer to sell securities in any jurisdiction.

It is not governance

It does not vote. It will not vote later, unless that changes in a way that is announced loudly and long before it happens. Adding governance to a token that never had it is a way of quietly changing what the token is, and we are not doing that.

It is not a claim on the protocol

Holding $PRIVSWAP does not give you a share of anything the protocol owns, does not give you a right to any revenue, and does not give you any say in how the protocol is run. What it gives you is exposure to a supply that is designed to shrink. That is the whole of it.

It is not a promise of any kind

Nothing on this page, and nothing anywhere else we publish, is a statement about what the token will be worth. It could be worth nothing. That is a real possibility and it is stated here rather than buried in a footnote, because a person deciding whether to buy should be told the worst case plainly.

Risks, stated without hedging

Most of these apply to anything in this category. They are listed anyway, because a risk section that only lists the flattering risks is not a risk section.

• The price can fall to zero. Nothing here prevents that, and nothing here is designed to prevent it. A burn mechanism reduces supply. It does not create demand.
• The protocol may earn very little. The entire buyback mechanism depends on fees, and fees depend on people using the venue. If nobody uses it, nothing is bought and nothing is burned.
• The mesh may not ship. It is in design, not in production. If phase three never arrives, the token economics continue but the reason the project exists does not.
• The contracts have not been audited yet. They are tested, which is not the same thing. Audits are planned and the results will be published in full, including anything unflattering in them.
• Launchpad tokens are volatile. The early price of a token on a bonding curve reflects almost nothing except how many people happened to buy that hour. Treat it accordingly.
• You can lose everything you put in. This is the summary of the five points above and it is the only one that really matters.

How to check any of it

Every claim on this page is something you can verify without our cooperation, and we would rather you did.

• Read the token contract. Either it has a mint function or it does not, and that is a better guarantee than any sentence we could write.
• Watch the burn address. Destroyed tokens accumulate there, and the balance only moves one way.
• Follow the vault. Fees accumulate in public, buybacks happen in public, and the running total is displayed live in the terminal.
• Check the liquidity lock. It is enforced by the launchpad, not by us, which means it holds whether or not we are still here.

The one thing worth remembering

The token is downstream of the product, not the other way around. It exists because the protocol earns fees and those fees need somewhere to go that is not a bank account belonging to us. If the product stops being used, the token's mechanism keeps working and does nothing, because there is nothing to route into it.

That is an uncomfortable arrangement for anyone hoping for a token that generates value on its own. It is a comfortable arrangement for anyone who would rather the token be tied to something real.

The token does not make the product valuable. The product makes the token interesting.