Penumbra, pushing the boundaries of Web3 privacy
Penumbra, pushing the boundaries of Web3 privacy
Penumbra, pushing the boundaries of Web3 privacy

Privacy

Penumbra, pushing the boundaries of Web3 privacy

Date

July 8, 2024

Everything you need to know about the Penumbra launch:

In this blog post we'll cover the following topics thoroughly
- Three-stage launching process
- Tokenomics (Airdrop, genesis supply, inflation)
- $UM Staking
- Penumbra DEX

▶️ Staged Launch:

For the Penumbra main net to be fully functional it has to go through the following three launching phases:

1) Phase 0:

  • The initial validator set has found the genesis block

  • New validators can join the network

  • Airdrop claimants can check their balances and stake to a validator

    => We're currently in this phase

2) Phase 1:

  • Penumbra's IBC module gets enabled via a governance vote

  • This does not enable IBC transfers yet, but merely allows IBC connections to other chains to be created

3) Phase 2 (Full Functionality):

  • IBC functionality will be activated via another gov. vote

  • Activation of the Penumbra DEX

  • Price diescovery of the $UM token begins

▶️ Tokenomics:

  • Genesis supply = 100M tokens

  • 16% of the supply goes out to the community via an airdrop

  • 25% to the community pool

  • Investor and team tokens are locked (2-3 year lockup with a one year cliff)

IAN = Institute for Applied Numogrammatics

IAN is a Cayman foundation dedicated to supporting the Penumbra ecosystem and protocol. It's an independent entity, that will engage in grant-making activities.

▶️ Penumbra Staking:

  • $UM staking is fully private with validator-specific liquid-staking tokens

  • Inflation is fixed by governance, starting at 2% p.a. (this minimizes excessive rewards for locked holders seen on other Cosmos chains)

  • Staking is fully non-custodial; users retain sole custody of their tokens

  • Unbonding period: 21 days

▶️ Penumbra DEX:

  • MEV minimization by eliminating transaction ordering

    => All trades are submitted in the same block and executed in a single batch with a common price.


  • This might lead to intra-chain arbitrage, hence the DEX autonomously performs arbitrage txs at the end of each block to correct mispriced positions.

    => All arbitrage proceeds are burned 🔥


Disclaimer

This is a research article with the purpose to educate readers about certain topics and not a financial advice by any mean.

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