Introducing $PNDO: The Core of Pondo’s Fee Mechanism

At the heart of Pondo’s ecosystem lies $PNDO — a unique token designed to enhance the protocol’s fee mechanism, reward long-term holders, and drive value creation.

Whether you’re new to Pondo or already part of our community, here’s everything you need to know about $PNDO, how it works, and why it’s central to Pondo’s mission.

What is $PNDO?

$PNDO is the core fee mechanism token within Pondo.

It plays a vital role in facilitating the protocol’s operations and delivering value to its users. With a fixed initial supply, $PNDO is a deflationary token — it can only be burnt and never minted, ensuring scarcity over time.

But what truly sets $PNDO apart is how it rewards holders. By holding $PNDO, users gain access to a share of the rewards accumulated in Pondo’s Rewards Pool, creating an incentive to participate in the protocol and contribute to its long-term success.

How Does $PNDO Work?

At its core, $PNDO is designed to operate within Pondo’s fee mechanism, supporting the protocol’s ecosystem in the following ways:

1. Fee Allocation and Rewards

• Pondo Rewards Pool receives a 10% commission on staking rewards for all funds staked with the protocol.
• When a user unstakes their $ALEO from the protocol by burning $pALEO while using the Fast Withdraw feature, a 2.5% convenience fee goes to the Pondo Fee Pool.
• The Rewards Pool accumulates these fees over time, creating a growing reserve of Aleo credits.

2. Redeeming Rewards with $PNDO

• $PNDO holders can redeem their tokens for a proportional share of the Aleo credits in the Rewards Pool.
• To claim these rewards, users send their $PNDO to the Pondo Protocol, which then burns the tokens and withdraws an equivalent share of Aleo credits from the pool.

This mechanism ensures that the more $PNDO you hold, the larger your share of the accumulated rewards.

3. Why Burn $PNDO?

• Once $PNDO is burnt, it cannot be minted again, reducing the overall supply.
• This deflationary mechanism incentivizes long-term holding, as the scarcity of $PNDO increases its potential value over time.

Why HODL $PNDO?

For $PNDO holders, the benefits are clear:

1. Access to Protocol Rewards

As a $PNDO holder, you gain the ability to claim your share of the Aleo credits in the Rewards Pool, allowing you to directly benefit from the protocol’s growth and success. $PNDO represents both the current fees and future cash flow from the Pondo Protocol.

2. Deflationary Dynamics

Since $PNDO can only be burnt, its supply will decrease over time, potentially increasing its value. This dynamic creates an incentive for users to hold $PNDO and benefit from future rewards.

3. Long-Term Alignment with Pondo’s Ecosystem

By integrating $PNDO into the protocol’s fee mechanism, Pondo ensures that its users and the protocol’s success are intrinsically linked. Holding $PNDO means you’re actively participating in the protocol’s mission to build a sustainable DeFi ecosystem on the Aleo network.

$PNDO in Action: A Practical Example

Imagine you hold $PNDO and want to claim rewards from Pondo’s Rewards Pool. Here’s how the process works:

1️⃣ You send your $PNDO to the Pondo Protocol.

2️⃣ The protocol burns your $PNDO tokens, reducing the total supply.

3️⃣ Your share of Aleo credits in the Rewards Pool is calculated based on the amount of $PNDO you’ve sent.

4️⃣ The protocol withdraws these credits from the pool and transfers them to your wallet.

By holding and burning $PNDO, you directly access the rewards generated by Pondo’s operations, turning protocol growth into personal gains.

The Future of $PNDO

As Pondo Protocol continues to innovate and expand, $PNDO will remain at the heart of its ecosystem. By combining a deflationary supply model with access to Aleo-based rewards, $PNDO represents a sustainable, community-focused approach to value creation in DeFi.

Whether you’re staking $pALEO or holding $PNDO, you’re part of a growing movement that prioritizes privacy, security, and long-term rewards on the Aleo network.

$PNDO will be listed very soon for users to purchase. Join the Pondo community to know first: discord.gg/Pondo