Tokenomics de Pentagon Games (PEN)

Overview

The PENGU token is the official fungible token of the Pudgy Penguins project, which began as an Ethereum NFT collection and has since expanded into multiple blockchains and consumer markets. The token was deployed primarily as an SPL token on Solana (December 17, 2024) and also exists as an ERC-20 via LayerZero OFT bridging.

Issuance Mechanism

• Airdrop Distribution: The vast majority of the PENGU token supply was allocated via an airdrop. Eligible recipients included holders of Pudgy Penguins, Lil Pudgys, Pudgy Rods NFTs, "OG" wallets on Ethereum and Solana, DeFi participants across Solana and Ethereum, Pudgy Penguin Soulbound token holders, and FTT holders.
• No Staking or Mining: There are no ongoing or planned staking, mining, or inflationary/token emission mechanisms. Once the airdrop and initial allocations concluded, the supply became fixed.
• Maximum Supply: Approx. 88.89 billion PENGU.

Allocation Mechanism

The initial supply was distributed among the following groups:

• Airdrop (~50.37%): Purely to users and communities, claimable at TGE.
• Team & Company (~29.28%): Subject to lock-up (detailed below).
• Liquidity, Proliferation, Public Good Funds: Reserved for ecosystem-related uses.

Usage and Incentive Mechanism

• No Core Utility: PENGU is a memecoin by design and is not associated with any explicit protocol utility or inherent economic incentive (such as governance, staking rewards, or fee claims). Holders do not receive dividends, voting rights, or profit shares.
• Speculative Asset: Its primary function is speculative trading, and it is freely transferable.
• Ecosystem Integration: While the Pudgy Penguins project references broader mainstream and digital ecosystem engagement, as of April 2025, PENGU’s function is not tied to any specific product, service, or on-chain action.
• No Governance: PENGU holders do NOT influence protocol decisions. The development team retains full control.

Lock-up Mechanism

• Team & Company Allocations: Both the team (17.80%) and company (11.48%) allocations are subject to a 1-year cliff and 3-year vesting schedule. This means these tokens are locked for the first year after issuance (Dec 17, 2024), and then gradually unlock linearly over the following three years.
• Other Allocations: Community, airdrop, liquidity, public good, and other minor allocations were unlocked at or near token generation.

Unlocking Time

• Immediate Unlock: More than 50% of PENGU supply (mainly community and airdrop allocations) was unlocked immediately at TGE in December 2024.
• Vested Unlocking: Team and company allocations unlock gradually from December 17, 2025 (one-year anniversary) through December 17, 2028.
• Burn Event: On February 5, 2025, over 12 billion unclaimed airdrop PENGU tokens (~13.7% of the max supply) were burned in a one-time event, reducing circulating and potential supply.

Additional Notes

• No Staking/Liquidity Rewards: No mechanisms exist or are planned for rewarding PENGU holders through staking or liquidity programs.
• No Ongoing Emissions: All supply is accounted for via initial airdrop and allocations; there is no inflation or ongoing issuance.
• Exchanges: PENGU is listed on major CEXs and DEXs, making it widely accessible post-TGE.

Conclusion

PENGU is a pure memecoin reflecting the brand and community of Pudgy Penguins, distributed initially via a broad airdrop, with non-circulating team/company allocations secured by a cliff and vesting schedule. There are no staking, governance, or on-chain utility mechanisms, and the major incentive is speculative. The economic model is deflationary only via an unusual, one-off burn of unclaimed tokens, rather than any algorithmic or ongoing deflationary design.

Summary Table

PENGU is emblematic of the evolving memecoin meta: community-driven distribution, no protocol obligation, and highly public exchange listings, but with rigorously documented allocation and lock-up mechanisms to reassure participants about supply constraints.