Puffer Finance (PUFFER)

Tokenomics & Utility

Supply and distribution

Puffer set PUFFER’s total supply at 1 billion tokens. Its published allocation assigns 40% to the ecosystem and community, 26% to investors, and 20% to early contributors and advisers. Another 7.5% was assigned to the first airdrop season and 5.5% to the second. The remaining 1% was pledged to Protocol Guild to support Ethereum core development. These figures describe the token’s original distribution plan, not the amount available for use at any particular time. (blog.puffer.fi)

Governance and incentives

PUFFER’s central use is governance. Puffer describes decisions over such matters as protocol fees, supported restaking services, rollup upgrades, and the direction of ecosystem rewards. Holders can lock PUFFER to receive vlPUFFER, which gives them voting power. Longer lock choices can provide greater voting weight. This gives participants a way to influence how Puffer develops and which activities its incentive system supports. (blog.puffer.fi)

One governance tool is the gauge. A gauge directs rewards toward an activity, such as a liquidity pool or an application using pufETH. vlPUFFER holders vote on how much weight each gauge receives. Puffer uses CARROT, an ERC-20 token, for these incentives. CARROT can be earned through eligible ecosystem activities, and Puffer has described a route for converting it to PUFFER under the program’s terms. PUFFER, CARROT, and pufETH therefore connect governance, rewards, and ETH restaking without performing the same job. (blog.puffer.fi)