Token Utility

$PPX is the native utility token of the Prophex ecosystem, designed with multiple value-accrual mechanisms that align user incentives with protocol growth. The token serves as the backbone for market creation, leverage unlocking, dispute resolution, and staking rewards.

Market Creation & Curation

Creating a market on Prophex requires locking PPX tokens as a proposal bond. This creates a skin-in-the-game filter for market creation: serious creators are rewarded, spam is discouraged, and fraudulent attempts are punished.

If the proposal is approved and launched: • The $PPX tokens locked are burned, permanently reducing supply. • The market creator receives a share of trading fees (a % of total volume on that market) as an incentive to propose high-quality markets.

If the proposal is denied: • The user can redeem their $PPX, minus a small processing fee.

If the proposal is deemed fraudulent or malicious: • The $PPX tokens are entirely burned, and the market is rejected.

Utility Summary

• Create & curate: PPX required to launch markets; creators earn revenue shares. • Unlock leverage: PPX tiering gives access to higher risk/reward opportunities. • Dispute resolution: PPX ensures only serious holders safeguard market outcomes. • Deflationary design: Buy & burn ties token scarcity to protocol growth.