Pentagon Games (PEN) Tokenomics

The token economics for PENGU, the SPL token associated with Pudgy Penguins, is characterized by a fixed maximum supply, an initial distribution heavily reliant on an airdrop, and a lack of utility or governance mechanisms.

Issuance Mechanism

PENGU is an SPL token on the Solana blockchain, with a maximum token supply of approximately 88.89 billion PENGU. The token has also been deployed as an ERC-20 token on Ethereum and Abstract using LayerZero OFT technology.

The primary mechanism affecting the circulating supply post-launch was a one-time burn event. The project team performed a burn of over 12.00 billion PENGU tokens, representing approximately 13.69% of the maximum token supply, on February 5, 2025. These tokens were unclaimed from the initial airdrop.

Allocation Mechanism

The initial distribution of PENGU was primarily conducted through an airdrop, which accounted for approximately 44.77 billion PENGU, or about 50.37% of the maximum token supply.

The approximate PENGU distribution allocations, according to the team, are detailed in the table below:

The airdrop targeted holders of Pudgy Penguins, Lil Pudgys, and Pudgy Rods NFTs, as well as "OG Ethereum and Solana wallets," DeFi participants across Solana and Ethereum, Pudgy Penguin Soulbound token holders, and FTT tokenholders.

Usage and Incentive Mechanism

PENGU is classified as a meme token and currently has no featured or planned functionality beyond being exchanged or held for speculative purposes.

• Utility: The token does not have an active governance process, and tokenholders cannot propose or vote on proposals that influence the project's development. The project team retains the sole privilege of influencing project and asset development.
• Incentives: A search found no methods in which users or tokenholders can earn fees, additional tokens, or any form of compensation (such as dividends, interest, or liquidity rewards) by interacting with the network or holding the token. Furthermore, there are no staking or liquidity provisioning mechanisms currently featured or planned.

Locking Mechanism and Unlocking Time

Allocations for the "Current & Future Team" and the "Company" were subject to vesting schedules designed to control the release of tokens over time.

• Team Allocation: The ~15.82 billion PENGU allocated to the "Current & Future Team" (17.80% of the maximum supply) was subject to a one-year cliff followed by a three-year vesting schedule.
• Company Allocation: The ~10.20 billion PENGU allocated to the "Company" (11.48% of the maximum supply) was also subject to a one-year cliff followed by a three-year vesting schedule.

The project team did not disclose the specific allocation addresses for these vested tokens.

Information regarding a detailed, ongoing token unlock schedule for PENGU beyond the initial vesting terms for the team and company allocations was not available.