PoNW Token Explained

What is PoNW token?

PoNW is a tradable, digital-asset with dynamic value that functions based on the fixed terms of an immutable, self-executing, unilateral "smart contract". It is an automatic yield-generating reflection token with hyper-deflationary tokenomics, built on the PulseChain (PLS) blockchain. The software aims to simplify the process of passively earning, giving its holders yield in PoNW via the reflection mechanism​.

The reflections are financed by a 3% tax on all transactions that occur on-chain. 2% of each transaction is instantly redistributed (reflected) proportionately to all token holders according to the size of their PoNW balance, while 1% of each transaction is burned, removing it from the circulating supply forever.

Burn Wallet

The burn wallet starts out with an initial distribution of 33% of the total supply. This wallet also receives 1% of each transaction & is included in reflections, so its constantly growing in size forever. This is done in a trustless manner, as the burn wallet is programmed to be a dead address, aka a wallet that no one has access to.

How Reflection Works

The goal of a reflection token is to distribute transaction fees to its holders every time a transaction occurs. This is done by individually adding rewards to every user’s account balance after each transaction, determined by a pre-set fee schedule. The amount each wallet receives as a reward is dependent upon the total amount of tokens held in that wallet.

This means that holders of PoNW receive free PoNW tokens after every transaction on the network. These tokens are automatically deposited into users' accounts, no need to stake, pay gas fees or interact with the smart contract or blockchain at all! The ultimate way to passively earn.

What PoNW Does

PoNW has a fixed total supply, but allows its holders to earn yield in PoNW , via a transaction tax & reflection mechanism. These mechanisms add stability to the token & thus may encourage users to hold onto their PoNW tokens in order to ensure that they keep automatically receiving reflection rewards.

This also means that with every transaction on the network, existing holders gain a larger percentage holding of the circulating supply & the marketcap. This will make the ecosystem hyper-deflationary & give holders guaranteed rewards in PoNW token after each transaction on-chain.

Why Is PoNW A PRC-20 Token On PulseChain?

PoNW token is launching on the PulseChain blockchain because transactions on PulseChain will be much cheaper & faster than on the Ethereum network, allowing the PoNW reflection mechanism to function efficiently. Also, after witnessing the success of HEX token, Richard Heart created projects will likely have tremendous success & a huge community. As a result, PulseChain is the perfect home for PoNW.

"Proof Of No Work" Explained

PoNW token utilizes a revolutionary concept called "Proof Of No Work", where the wallets with no activity, aka who do no work, make the largest gains. You simply need to HODL your tokens in your wallet to prove that you are doing "no work." By simply holding, you gain more tokens from reflections, just like staking, but with no new tokens ever created via inflation, & no need to pay gas fees or monitor your stake.

This means that you gain a larger percentage holding of the market cap with each transaction on-chain, because no new tokens are ever created to dilute your holdings. Instead, tokens are actually removed from the circulating supply due to the burn mechanisms. The reflection rewards come only from the existing circulating supply, via the 3% transaction tax. As tokens are constantly burned, your ownership percentage of the total circulating supply is always increasing if you simply prove you're doing "no work" by HODLing.

Your Keys, Your Coins

There are no middlemen involved, no 3rd party company or business responsible for the execution of any of the contract functions. The software self-executes according to the code & terms of the immutable smart contract.

All activity is equivalent to a unilateral contract that users of the software agree to with themselves according to the terms of the contract/code. 2nd or 3rd parties can be involved, but must agree to the same terms of the contract themselves.

Example

There are 100 imaginary PoNW tokens total. Initially, Kobe owns 1 token, Sam owns 2 tokens, and Radric owns 3 tokens. Radric sends Kobe 1 token. Radric now has 2 tokens and Kobe now has 1.97 tokens. The 0.03 PoNW fee (from a 3% transaction fee) is now split and 0.01 PoNW is burned (1% burn fee) with 0.02 PoNW (from the 2% reflection fee) distributed proportionately amongst all holders.. So in this scenario, Sam would receive 0.0004 free PoNW tokens, because he receives 2% of the 2% reflection (.02*.02 = 0.0004) as he owns 2% of the total token supply (2/100 total tokens).

The new circulating supply is now 99.99 PoNW tokens (100 - 0.01 tokens burned) and Sam has a new total balance of 2.0004 PoNW tokens. This means that he now owns 2.0006% of the circulating supply instead of just 2%, & he did absolutely nothing to earn it, other than self-custody his own funds.

How This Benefits Savers

Holders of PoNW token earn these rewards all day for doing absolutely nothing, no work at all. A revolutionary economic concept that gives financial power back to the people & truly incentivizes savers.

Each transaction not only increases the holder's wallet size, but also their percentage held of the total circulating supply. This is unlike meme coins such as Safemoon & its clones, because no funds are extracted from existing liquidity pools or given to the deployers of the contract via a dev/marketing tax.

Instead, tokens are being taken out of circulation and no value is being extracted from the ecosystem. Hodlers are rewarded with an increasingly larger share of the total circulating supply, on top of their compounding interest. No need to stake or interact with your wallet at all

Proof of No Work is the solution to earning yield without inflation.

Issues With Traditional Staking

You can think of staking as a less resource-intensive alternative to cryptocurrency mining. It involves holding funds in a cryptocurrency wallet to support the security and operations of a blockchain network. Simply put, staking is the act of time-locking cryptocurrency to receive inflation rewards.

Auto-staking (auto-farming) tokens have become a new trend in the Defi space over the past year because in traditional farms, users have to stake their tokens manually. This forces a two-step process where users pay unnecessary gas fees and risk their funds if the staked tokens end up in a 3rd parties wallet.

Reflections Solve These Issues

Instead of risking your funds or paying gas fees to stake, unstake, or claim rewards, reflection tokens implement a sort of auto-staking feature that is built into the smart contract itself. This way, users can safely store their tokens in their own wallets, secured by their private keys. while simultaneously earning yield, with no further action required. One huge benefit of this model is that rewards come solely from transaction fees and not from inflation by minting new tokens.

What You Can Do With PoNW ?

Just like most other cryptocurrencies, PoNW enables users to secure online payments without the use of third-party intermediaries. However, PoNW token has additional use cases that Bitcoin or meme coins like Safemoon, DogeCoin, or Shiba Inu lack.

PoNW token offers a self-generating yield mechanism based only on a 3% transaction tax. This mechanism is inherent to the smart contract, & requires no middlemen. The burn mechanism also rapidly reduces the circulating supply, making your tokens more rare over time.

This type of deflationary system allows you to do new things with loan agreements, such as use PoNW tokens to ensure a loan is fully collateralized (or even over-collateralized) in PoNW at the date of maturity, even if at the beginning of the agreement you start out under-collateralized in PoNW (You could make a guesstimate based on the average transaction volume over a given time period).

Or you could potentially deposit PoNW tokens to satisfy the collateral agreement, but have the lender agree to send you the yield from your holdings earned from the reflection mechanism.

These are just some examples, but these concepts open up the world to a new kind of economic environment, where assets used for exchange are designed to not perpetually go down in value due to inflation.

How To Take Advantage

As time goes on and transaction volume increases, early PoNW token holders will receive a larger quantity of PoNW for each reflection. This is because of the compounding earnings received, which causes each reflection to grow in percentage if you simply hold. And unlike meme coins with a liquidity function, or fiat currency, if you HODL tokens, you will never be diluted by new tokens, as tokens are instead being burned and taken out of the supply. As with most crypto tokens, the best way to take advantage is to get in early.