Pryzm Tokenomics

Pryzm is more than just a blockchain — it is a community-driven network that gives its users a stake in its future.

The Pryzm token serves as the governance token of the network. By delegating Pyzm to a validator, users can earn staking rewards and participate in the governance of the chain.

Through governance proposals, Pryzm stakers can vote on network parameters, general direction proposals, and how community pool funds are spent.

Unlike many other Layer 1 blockchains, Pryzm does not rely solely on gas fees for revenue.

Pryzm has multiple revenue streams, including:

• A share of the underlying yield from the various cTokens and yTokens staked by Pryzm, such as ATOM, INJ, OSMO, TIA, and more.
• Swap fees, which are small fees charged for swapping tokens on Pryzm’s Decentralized Exchange (DEX).
• MEV (maximal extractable value), which is the value extracted by validators from reordering transactions. Pryzm uses Skip Protocol’s Block SDK to implement a fair and transparent mechanism to capture and distribute MEV without compromising the security or the user experience of the network.
• A tax rate on tokens other than PRYZM that are being restaked to secure the network. Pryzm charges a small tax on the tokens that are delegated to Pryzm validators, such as Yield Pool Tokens for ATOM, INJ, OSMO, TIA, etc. This is known as the “take rate”.