Documentation Index
Fetch the complete documentation index at: https://docs.pelion.dev/llms.txt
Use this file to discover all available pages before exploring further.
Trading tax
A small tax applies to buys and sells. All proceeds route to the protocol treasury. The tax is not intended to be permanent. It is a bootstrap funding mechanism for the treasury during the phase when the treasury is still accumulating productive assets. Once the treasury earns enough ongoing Bittensor emissions to fund itself, the tax decays toward a long-term floor. The decay is automatic and enforced in the token contract. It triggers at specific milestones as the treasury’s Bittensor holdings grow. Holders do not have to take any action. Trading fees reduce as the protocol matures. Governance retains the ability to adjust the tax within a specified range if conditions change. The floor is set to keep token friction low in the long run.Utility
The Pelion token plays distinct roles across payment, staking, governance, and the dispute council. Each role is handled by a specific mechanism, described below.Payment
Requesters who payresolve() fees in Pelion token receive a discount versus paying in USDC. Payment tokens are split. A majority is market-bought and burned, the remainder goes to the treasury. This creates a direct demand sink that scales with protocol usage.
Staking
Stakers earn a pro-rata share of protocol fees. Staking also grants the right to propose resolution criteria for new prediction markets on the reference market product.Governance
Token holders vote on protocol parameters, treasury alpha-management policy, and the tax schedule. Voting weight is quadratic (square root of token balance). A deliberate dampener on whale dominance. Governance tiers are described in Governance.Escalation council eligibility
Staked token holders above a threshold are eligible to be randomly selected for the dispute escalation council, which adjudicates verdicts that survive the challenge window but face substantial community pushback. Council members are rewarded for accurate rulings and slashed for rulings later proven wrong by ground truth.What the token does not do
The token design omits three features that many comparable tokens include. Each omission keeps Pelion further from securities triggers in major jurisdictions while preserving the economic loop. Holders have no redemption rights to treasury assets. Tokens do not carry a proportional claim on treasury TAO, USDC, or alpha positions. Stakers earn fees through an explicit claim mechanism. There is no automatic yield distribution and no rebasing. Supply has no mechanism to increase after launch. The only supply change is burn-on-buyback, which reduces supply. Each of the three features (treasury claims, automatic yield, elastic supply) independently raises the probability that a token gets classified as a security in at least one major jurisdiction. Pelion’s design preserves a working economic loop (tax to treasury to emissions to buyback and burn) without any of them.The flywheel
The harvest vs compound ratio is a governance parameter. In growth phase, compound more (alpha stake grows, more emissions, flywheel accelerates). In mature phase, harvest more (more burn per unit time, more direct value accrual to holders). See Treasury flywheel for the capital allocation policy, rebalance mechanics, and transparency commitments.Why a Base holder gets indirect Bittensor exposure
Bittensor is a productive asset economy with its own token (TAO), subnet-specific tokens (alpha), and emission mechanics that are complex and time-consuming to engage with directly. Most token investors won’t bridge, create a coldkey, register on a subnet, and manage emissions schedules. Pelion’s treasury does that work on behalf of the protocol. A Pelion token holder who never touches Bittensor still gets an economic exposure to Bittensor emissions via the buyback and burn mechanism. When treasury TAO holdings grow, tax decays (improving trading economics) AND harvested alpha funds buybacks (reducing supply). Both vectors accrue to the Base-side holder without them having to manage the Bittensor complexity themselves. This is the specific structural claim that differentiates Pelion’s token from a generic “L2 utility token”. Buyback and burn is funded by productive assets in a separate token economy, not by inflation or by holders paying themselves.Further reading
Treasury flywheel
How capital flows between Base and Bittensor, rebalance cadence, and transparency.
Governance
Three-tier design, quadratic voting, escalation council rules.
Economic security
How token economics interact with the protocol’s adjudication security.
Full technical spec
The canonical source for token parameters.