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PSWAP is used to reward liquidity providers on Polkaswap.

PSWAP has decreasing supply, with tokens burned with every token swap on Polkaswap.

The 0.3% fee for every swap on the Polkaswap DEX is used to buy PSWAP tokens on Polkaswap, which are then burned. At first, 90% of burned PSWAP tokens are reminted to allocate to the liquidity providers, but with time this percentage will decrease to 35% after 5 years.

PSWAP Token Supply

  • 10 billion max supply, decreasing with tokens burned
  • PSWAP is a free-floating token whose price is decided by the market
  • Current PSWAP circulating supply: ~36%, can be checked here

PSWAP Distribution


Polkaswap has a 0.3% trading fee per transaction, the same as other contemporary exchanges like Uniswap. Unlike transaction fee models on other exchanges, on Polkaswap, trading fees are used to buyback-and-burn PSWAP tokens, and then new PSWAP tokens are minted to reward LPs. Newly minted PSWAP tokens for liquidity providers start at 90% of the number of burned PSWAP tokens in 24 hours and will gradually decrease to a constant 35% of daily burned tokens after five years. The PSWAP token model is thus deflationary in nature, unlike almost all other contemporary reward structures, because the rewards are limited by the amount burned in transaction fees each day.

Additionally, special rewards to strategic purchasers of XOR during the special XOR purchase period, rewards to liquidity providers during the initial liquidity tsunami period and market makers rewards are also distributed as a fraction of the daily burn (shown as the shaded Strategy Bonus Vesting region in the figure below). This gives guarantees that a sudden supply of tokens will not immediately flood the market and gives clear guidance about the supply of tokens in circulation.

Example: Let's assume that buyback-and-burn from transaction fees for a day resulted in 10,000 PSWAP being burned. If the daily reward is 80%, then 8,000 new PSWAP tokens are given out proportionally across all liquidity providers and 1,000 PSWAP tokens are given to the SORA Parliament and 1,000 PSWAP are distributed between the participants of the bonus strategic programs

Since more PSWAP tokens are always burned than minted, PSWAP tokens are deflationary by nature. 600,000,000+ PSWAP tokens were created in the genesis event. PSWAP future token value is not dependent on the effort of the Polkaswap or the SORAMITSU team. In the future new PSWAP tokens may be minted by governance decisions of the SORA Parliament.

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