Premia Tokenomics Recap

It’s about time for a quick refresher of Premia’s meta-economics, and more specifically, our tokenomics model!

It’s about time for a quick refresher of Premia’s meta-economics, and more specifically, our tokenomics model!

A short while ago, you might’ve noticed Premia’s market cap spike by a whole lot. This caused some misunderstandings, which then grew to fear, uncertainty and doubt spreading far and wide…

In reality, the reason for the spike was quite anti-climactic — Coingecko just happened to be mislabeling the team’s allocations.

Although this sudden spike wasn’t due to any change made by us to the Premia tokenomics, we felt it appropriate to address some of the aforementioned FUD.

Let’s dive in — here’s everything you need to know about how the Premia token, how it works in tandem with governance, and what we’re planning going forward. We’ll also answer some F.A.Q at the end!

Meta-Economic Summary of the Premia Token

Premia’s meta-economics are designed to strike the perfect balance between incentivizing platform usage and ensuring long-term sustainability.

By locking Premia tokens, users receive vxPremia in return. The dual-token model serves three main purposes:


vxPremia holders gain the right to vote on proposals affecting the platform. Holders can submit proposals that other holders can then vote on. The more tokens are locked, the more influence a user has.


Holding a certain amount of vxPremia can additionally provide discounts on trading fees. As with voting influence, the more vxPremia is held, the more discounts are received!


Liquidity providers on Premia are rewarded Premia tokens for underwriting options. The amount of rewards allocated to each pool is managed by the Manifold Control — which in turn is controlled by vxPremia holders.

Additionally, users who stake Premia tokens for vxPremia will receive the majority of platform fees denominated in USDC.

Allocations and Emissions

Along with other things, the token allocations are subject to change in combination with vxPremia and the Premian Parliament, which is currently in the final stages of inception.

Additionally, all changes to Premia’s tokenomics require ratification via a thorough governance voting process involving core contributors and community members.

Here’s a quick recap of the current token allocations and emissions schedule:

  • 30% Cross-Chain Liquidity Mining Fund (Liq Mining)

  • 20% Development Fund (Operator)

  • 10% Safety / Insurance Module (Currently subject to Parliament review)

  • 10% Initial Community Distribution (Bootstrap)

  • 10% Founder Allocation (Operator)

  • 10% Future Incentives Program (Partnerships)

  • 5% Marketing and Education Fund (Partnerships)

  • 5% Ecosystem Grants Fund (Partnerships)

What’s the purpose of these allocations, you might ask?

In short, just like the utilities of the token, the allocations have been designed to strike the perfect balance between long-term sustainability and platform incentives.

Here are the details for Premia’s token allocations:

Locking Summary of the Premia DAO (Blue Descent)

  • 10M Operator 4yr Lock -> Staked for 4yr upon unlock (10% Ownership)

  • 10M Blue Descent 4yr Lock -> Staked for 4yr upon unlock (Replacing Safety Module, subject to Parliament approval)

  • 2M Blue Descent Unlocked for Grants and for Community


  • 17.5M committed amongst 30 core contributors (no individual with more than 2.5% control)

  • 5M of protocol-owned liquidity and future contributors

Liquidity Mining Program

  • 26M mining fund managed by the Manifold Control (vxPremia stakers)

The Future of Premia’s Governance

Rightfully so, a group of very wise owls is also known as a Parliament.

In combination of the growing maturity of The Premia Ecosystem as well as an increasing need for community involvement, we have built a foundation for the Premia Parliament.

As a joint task force of Premia’s core members and elected community members, The Parliament will in part have the responsibility to ratify governance proposals and complete the formal path towards becoming a Decentralized Autonomous Organization.

The Premia Parliament, circa 2023

Debates are encouraged, and formal documentation and voting ratifications will be frequent. Ultimately, The Parliament will be asked to step forward and lead the Premia Ecosystem to the next chapter of our collective journey.


And finally, if you didn’t already find what you’re looking for, here are some frequently asked questions regarding Premia’s tokenomics and governance system!

Q: What is the Premia Parliament?

A: The Parliament will be a joint task force of Premia’s core members and elected community members to ratify and complete the formal path towards becoming a DAO.

Q: What will the partnerships token allocations be used for?

A: In line with our ethos, we have multiple ideas for community grants, trading competitions, and quests along with a learn-to-earn system for the Premia Academy!

Q: Why did the market cap suddenly pump without any communication from the team?

A: Coingecko was mislabeling tokens owned by the team (Operator & Partnerships allocations).

Q: Currently, a large portion of the token supply is held by team members. What’s the plan?

A: Majority of team tokens have already been/will be re-locked for 4 years.

Q: Fully Diluted Valuation (FDV) is too high. Is that amount of tokens really needed?

A: We can potentially cut the LM program earlier than planned. As v3 launches and we gain access to more data, we will be able to estimate how many tokens are actually needed for emissions, and whether or not the LM program can be cut short.

Questions About Premia’s Tokenomics?

Premia’s goal is to craft a socio-economic model for long-term sustainability while ensuring platform growth. Together with our community and the Premian Parliament, we’ll make it happen.

If you have any questions about Premia’s tokenomics that this article left unanswered, don’t hesitate to drop by our community on Discord and shoot us a message!

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