Pixiedust
Last updated
Last updated
Pixiedust is both the in-app currency for the $SOCIAL app and the $SOCIAL token's business model.
Features within the app are tightly integrated with $PDUST. At launch of Chatroom, users can "drop" Pixiedust, i.e., tip one another natively within the app. We'll be launching a series of creative social experiences with $PDUST at the center, including extending Chatroom into a multimodal experience.
$PDUST is backed by real value. See more in Tokenomics section.
While there is some complexity under the hood, all of the following is abstracted from users.
Underlying $PDUST is a 50/50 $SOCIAL/WETH Uniswap V3 liquidity position. Each token represents a proportional supply of the position and will fluctuate in USD-denominated value according to the price performance of the underlying position.
LP fees from the Pixiedust position are treated as follows
100% of $SOCIAL will be burned
WETH will be used to fund development.
Pixiedust can be acquired using ETH on Base. 50% of the ETH is converted to $SOCIAL and 50% is converted to WETH, before both are deposited as liquidity.
Some takeaways:
whenever anyone enters Pixiedust, $SOCIAL is being acquired
whenever anyone enters Pixiedust, $SOCIAL is being burned via LP fees
context and experiences in the $SOCIAL app directly improve liquidity for the token
Pixiedust creates a symbiotic relationship between in-app utility and token marketability
When users transact with value or simply want to hold value with Pixiedust in the app, the underlying position is generating liquidity and promoting accessibility to the token.
Vanilla tipping tokens do not do this.
Pixiedust is naturally deflationary
While we do not charge fees for using Pixiedust in the app, the very act of holding Pixiedust is deflationary because all $SOCIAL LP fees from the underlying position are burned.
Vanilla tipping tokens do not do this.
Using an LP token as in-app currency provides a much more stable unit of account
Most coins are simply too volatile to be useful as an exchange of value.
While Pixiedust is still plenty sensitive to $SOCIAL price, it can be more accurately described as semi-volatile because the convexity of the LP token’s value curve cushions the position.
