Pentagon Games (PEN) Tokenomics

The token economics for PENGU, the SPL token associated with Pudgy Penguins, is structured around a fixed maximum supply, initial distribution via a large-scale airdrop, and specific vesting schedules for the team and company allocations. PENGU is primarily a meme token with no inherent utility beyond exchange and speculation.

Issuance Mechanism

The PENGU token operates as an SPL token on the Solana blockchain, with a fixed maximum supply.

• Maximum Supply: The maximum token supply for PENGU is approximately 88.89 billion PENGU.
• Multi-Chain Deployment: PENGU has also been deployed as an ERC-20 token on Ethereum and Abstract, utilizing LayerZero OFT technology to facilitate cross-chain transfers. As of April 25, 2025, approximately 1.06 billion PENGU (~1.19% of the maximum supply) had been bridged to Abstract.
• Token Burn: The project team executed a one-time burn of over 12.00 billion PENGU tokens on February 5, 2025. This amount represented approximately 13.69% of the maximum token supply and consisted of tokens that were unclaimed from the initial airdrop.

Allocation Mechanism

The initial distribution of PENGU was heavily focused on an airdrop to various communities, accounting for over half of the total supply.

Initial Distribution Breakdown

Approximately 44.77 billion PENGU (about 50.37% of the maximum token supply) were allocated toward the initial airdrop. The approximate distribution allocations, according to the team, are detailed below:

Airdrop Details

The airdrop was distributed to holders of Pudgy Penguins, Lil Pudgys, and Pudgy Rods NFTs, as well as to "OG Ethereum and Solana wallets," DeFi participants across Solana and Ethereum, Pudgy Penguin Soulbound token holders, and FTT tokenholders.

The initial claim period for the airdrop was planned to last until March 9, 2025, but the team ended it early on February 9, 2025, due to data suggesting that only bots were continuing to claim tokens.

Usage and Incentive Mechanism

PENGU is classified as a meme token and currently has no featured or planned functionality beyond being exchanged or held for speculative purposes.

• Utility: There is no stated utility for PENGU within the network or protocol.
• Incentives: A commercially reasonable search found no mechanisms for users or tokenholders to earn fees, additional tokens, or any form of compensation (such as dividends, interest, or liquidity rewards) by interacting with the network or holding the token.
• Staking/Liquidity: There are currently no staking or liquidity provisioning mechanisms featured or planned for PENGU.
• Governance: As of April 25, 2025, Pudgy Penguins does not have an active governance process. PENGU tokenholders do not possess voting rights or the ability to propose changes. The project team retains the sole privilege of influencing project and asset development.
• Acquisition: Users can acquire PENGU through centralized exchanges (e.g., Binance, Coinbase, Bybit) and decentralized exchanges (e.g., Raydium, Orca, Meteora).

Locking Mechanism and Unlocking Time

Specific allocations for the team and company are subject to vesting schedules designed to ensure long-term commitment.

Vesting Schedule

The allocations for the team and company are subject to a one-year cliff followed by a three-year vesting schedule:

• Current & Future Team Allocation: The ~15.82 billion PENGU (17.80% of the maximum supply) allocated to the team is subject to a one-year cliff with a three-year vesting schedule.
• Company Allocation: The ~10.20 billion PENGU (11.48% of the maximum supply) allocated to the company is also subject to a one-year cliff with a three-year vesting schedule.

The project team did not disclose the specific wallet addresses associated with these allocations.

Token Burn Mechanism

While there are no planned or ongoing token burn or buyback mechanisms, the team executed a one-time burn of over 12.00 billion unclaimed PENGU tokens on February 5, 2025, which effectively reduced the circulating supply.

Note: Specific token unlock dates for the team and company allocations were not available, but the vesting terms include a one-year cliff followed by three years of vesting.