# pFLY Whitepaper

## The Dual LP Burn Flywheel Protocol

Sustainable Liquidity | BTC-Style Halvings | Permanent LP Burns | 5,555-Day Staking

## 1. Introduction

Most crypto projects fail because their tokenomics are designed for extraction instead of sustainability. Trading creates sell pressure, farms inflate supply endlessly, liquidity providers leave, rewards get dumped, and communities fade.

pFLY is designed as a PulseChain-native flywheel where trading activity strengthens liquidity, liquidity improves market depth, fees fuel buybacks and burns, staking reduces circulating supply, and emissions become scarcer over time.

At the center of the protocol is the Dual LP Burn Flywheel: every engine cycle contributes toward deeper liquidity, permanent LP burns, pFLY buybacks, reduced liquid supply, and stronger long-term staking incentives.

## 2. Vision

pFLY is built around permanent liquidity growth, long-term staking alignment, controlled emissions, deflationary mechanics, ecosystem recycling, and supply compression over time.

The objective is simple: build stronger liquidity instead of temporary hype.

## 3. Protocol Overview

Total supply: `21,000,000 pFLY`.

Launch default fees:

| Action | Fee |
| --- | ---: |
| Buy fee | 3% |
| Sell fee | 5% |
| Maximum fee cap | 10% |

## 4. Dual LP Burn Flywheel

Every engine cycle routes collected fees into three systems:

| Allocation | Purpose |
| ---: | --- |
| 40% | pFLY/pDAI LP burn rail |
| 40% | pFLY/pMINT LP burn rail |
| 20% | pFLY buyback and burn |

The engine split can be adjusted with `setEngineShares()`, but all shares must total 100%.

## 5. Flywheel Flow

Trading activity -> protocol fees -> dual LP build rails -> permanent LP burns -> reduced liquid supply -> buyback and burn -> staking demand -> scarcity reinforcement.

## 6. LP Burn Rails

The pFLY/pDAI rail swaps part of collected pFLY into pDAI, pairs retained pFLY with pDAI, creates LP tokens, and sends those LP tokens to `0x000000000000000000000000000000000000dEaD`.

The pFLY/pMINT rail swaps pFLY through pDAI into pMINT, pairs retained pFLY with pMINT, creates LP tokens, and burns those LP tokens the same way.

Permanent LP burns matter because liquidity becomes harder to remove over time. Instead of renting liquidity temporarily, the protocol compounds liquidity infrastructure.

## 7. Buyback And Burn

The remaining 20% of each engine cycle routes through pDAI, buys pFLY from market liquidity, and sends purchased pFLY to the dead wallet. The goal is to reduce liquid supply and create automated buy pressure over repeated cycles.

## 8. BTC-Style Halvings

pFLY staking emissions follow a Bitcoin-inspired halving schedule:

| Epoch | Start | pFLY / Block | Reward % |
| ---: | --- | ---: | ---: |
| 1 | Launch | 1.0000 | 100% |
| 2 | +864,000 blocks | 0.5000 | 50% |
| 3 | +1,728,000 blocks | 0.2500 | 25% |
| 4 | +2,592,000 blocks | 0.1250 | 12.5% |
| 5 | +3,360,000 blocks | 0.0625 | 6.25% |

The halving structure reduces inflation over time, rewards early participation, strengthens scarcity, and aligns long-term staking.

## 9. 5,555-Day Staking

pFLY staking lets users select a stake amount, choose an unlock date, and earn weighted emissions. The maximum lock duration is 5,555 days, or roughly 15.2 years.

Longer lock durations receive higher reward weight. This reduces short-term speculation, circulating supply pressure, and rapid emission dumping.

## 10. Emergency End Staking

Staking V3 supports emergency ending with a penalty that starts at 30% and can scale to 45% for maximum-length stakes near maturity.

Base emergency end:

| Route | Share of principal |
| --- | ---: |
| pDAI reflections for remaining stakers | 20% |
| pFLY buyback and burn | 10% |
| Returned to user | 70% |

Maximum emergency end:

| Route | Share of principal |
| --- | ---: |
| pDAI reflections for remaining stakers | 30% |
| pFLY buyback and burn | 15% |
| Returned to user | 55% |

## 11. Recycle Farm

The PMINTRecycleFarm is an LP-only farming system with anti-dump architecture.

Core features:

- LP-only staking.
- On-chain pFLY-pair validation for farm pools.
- Pre-funded pFLY rewards.
- Optional funded pDAI Stability Drips for active LP farmers.
- Capped emissions.
- 0.25% LP deposit burn.
- 25% instant harvest and 75% escrowed harvest.
- Escrowed rewards can be claimed later or voluntarily recycled to the dead wallet.
- LP providers can withdraw principal LP; withdraw has no exit burn.

The farm rewards wallets that stake actual PulseX LP tokens instead of relying on screenshots or off-chain claims.

Farm pools must be factory-created LP pairs where one side is pFLY. Non-pFLY pools such as WPLS/pHEX are not part of the farm design and are rejected by the farm contract.

The pDAI Stability Drip is not inflation and does not sell pFLY. It is funded separately per pool after LP is already staked, then becomes claimable by LP farmers according to their pool share.

The drip claim path is intentionally simple: add pFLY-paired LP, stake that LP in the Recycle Farm, watch Pending pDAI in the farm panel, then harvest. The harvest transaction pays any claimable pDAI drip plus the farmer's capped pFLY rewards. There is no separate pDAI mint, no pFLY sell to source pDAI, and no preloaded empty-pool pot that a first depositor can drain before real liquidity exists.

## 12. Game Theory

More trading creates more protocol fees. More fees create more LP builds and burns. Burned LP creates deeper, more permanent liquidity. Staking and long locks reduce circulating supply. Halvings make emissions scarcer over time.

The system is designed so trading, liquidity, staking, emissions, and burns reinforce each other instead of competing for attention.

## 13. PulseChain-Native Architecture

pFLY is designed for PulseChain, PulseX liquidity rails, low-fee execution, ecosystem-native routing, pMINT integration, and pFLY-paired liquidity farms for pFLY/pDAI, pFLY/pMINT, pFLY/pHEX, and pFLY/WPLS.

There is no WPLS/pHEX farm pool in the current pFLY farm design.

## 14. Launch Configuration

Current phase: PulseChain mainnet launch with public proof packaging. Public promotion should keep proof links visible and keep activation airdrop claims gated until the final Merkle package exists.

Current corrected Testnet V4 pFLY: `0x7e64B456508894146FecAa4Fe5ff79a37083683C`.

The live proof package includes deployed pFLY, seeded and burned LP, funded staking V3, funded recycle farm, staking timers, live flywheel analytics, and pFLY-paired farm rails for pDAI, pMINT, pHEX, and WPLS.

## 15. Mainnet Allocation Target

The target mainnet token allocation is:

| Allocation | Amount | Share |
| --- | ---: | ---: |
| Staking reserve | 10,500,000 pFLY | 50% |
| Recycle farm reserve | 7,350,000 pFLY | 35% |
| pMINT holder activation eligibility | 1,050,000 pFLY | 5% |
| pDAI holder activation eligibility | 630,000 pFLY | 3% |
| pDAI Pioneers Fund | 420,000 pFLY | 2% |
| Marketing and growth | 1,050,000 pFLY | 5% |

The pFLY activation airdrop uses the PulseChain pMINT token at `0xFf640cBd35A618Df1348D861B5e47f7eaB05b422` and the PulseChain copied DAI token at `0x6B175474E89094C44Da98b954EedeAC495271d0F`. The combined claim system uses Merkle snapshots with square-root weighting, 90-day claim windows, wallet caps, minimum eligibility thresholds, and an expiry split where 50% of unclaimed pFLY is burned and 50% moves to the staking reserve.

This is not a loose hype drop. Users can choose a plain wallet claim for 100% of their original allocation, or use the activation path, but liquid release is guarded by vesting. The default chart-safe setting releases only 0.25% of each unlocked entitlement immediately, then vests the remainder over 555 days. Activation claims start with a 25% base entitlement and unlock more through real flywheel actions: 180/555/5,555-day pFLY staking, pFLY/pDAI LP, pFLY/pMINT LP, and Recycle Farm LP staking. Completing all activity paths can unlock the final champion bonus, capped at 200% of the original allocation.

Known linked wallets can be grouped off-chain so each cluster receives one square-root weight and one cap before allocation is split across its wallets by token balance. Unknown wallet ownership cannot be proven on-chain, so the snapshot block, exclusions, and cluster list must be public. The pDAI Pioneers Fund is separate from the activation airdrop and should be managed through a public wallet and distribution plan. The testnet reserve funding is smaller by design because it is a rehearsal. The mainnet proof package should publish the real staking funding transaction, recycle farm funding transaction, activation airdrop deployment and funding transaction, pDAI pioneers wallet, marketing/growth wallet, snapshot roots, excluded-address lists, and cluster files before promotion.

No mainnet transactions have been sent by this workspace automation. Mainnet launch claims should remain closed until liquidity exists, LP burn proof is public, staking and farm funding proofs are public, and the airdrop snapshot artifacts are published.

## 16. Audit Status

This repository has received scoped internal review and automated checks, but it has not received a formal third-party audit.

Before mainnet, owner controls, router assumptions, liquidity paths, staking emergency-end routing, farm reward accounting, and launch operations should receive external review.

## 17. Disclaimer

This document is for informational purposes only and does not constitute financial advice, investment advice, or securities solicitation. Participation in decentralized finance protocols involves substantial risk, including smart contract risk, market volatility, routing risk, liquidity risk, and wallet risk. Users participate at their own discretion.