Dual-Token Model
Two Tokens. One Ecosystem.
The POTS ecosystem runs on two tokens with fundamentally different roles. IBS is the algorithmic monetary layer — elastic, collateral-backed, always verifiable. POTS is the fixed-supply governance layer — earned through protocol revenue, not sold.
- ≥$1 collateral backing
- Staking → vIBS
- DAO governance
- Deflationary via PBM
- Liquidity rewards
- Market incentives
- IBS — algorithmic monetary token, elastic supply, backed by ≥$1 LP collateral per unit
- POTS — fixed supply 21M, deflationary governance token, earned through protocol revenue
- Two different assets with different roles — not competitors, co-dependent
- POTS distribution via 500-day PBM auction — IBS stakers receive daily redistributions
IBS vs POTS — Different Roles
These two assets are not competitors. They are co-dependent. Pots Market needs IBS liquidity. Pots Money needs POTS governance. Each makes the other more valuable.
Three-Layer Backing System
IBS is not empty air. Every unit in circulation is supported by real, verifiable on-chain value across three protection layers.
LP Liquidity Pool
Every IBS issued is backed by at least $1 USD equivalent in LP assets. This is the primary collateral floor — not a target, a minimum.
RBS Range Bounded Stability
A secondary reserve buffer that absorbs volatility and supports the $1 floor during market stress without drawing on the primary LP collateral.
Safety Treasury
Protocol-owned treasury maintained as the final defense layer, ensuring long-term solvency even in extreme market conditions.
PBM: The 500-Day Deflation Auction
POTS is not sold. It is distributed to IBS stakers through a transparent, on-chain auction process over 500 days. Protocol revenue funds the auction.
Revenue Collection
IBS staking unlock fees (30% co-building tax for early unlock) are collected in USDT and automatically converted to BTCB — stored in the PBM Treasury.
Daily Injection
Each cycle's revenue is divided into 30 equal portions and injected daily into the POTS/BTCB pool. Steady, predictable capital flow — no large destabilizing events.
Daily Deflation
Every day, 0.5% of the pool balance is removed and split between burn and redistribution to IBS stakers — ratio shifts from 80/20 (early) to 20/80 (late) over 500 days.
Decentralization
At day 500: liquidity migrates to DEX, all taxes removed, transfer restrictions lifted, owner key discarded. POTS becomes a permanently free-floating governance token.
Why Two Tokens Instead of One
A single token cannot simultaneously optimize for elastic collateral mechanics and fixed-supply governance credibility. Separating these roles removes structural contradictions.
IBS: Structural value
Elastic supply is a feature, not a bug. IBS needs to expand when more liquidity enters the protocol and contract when it exits. This flexibility is what allows the ≥$1 backing floor to hold — a fixed-supply token cannot maintain this guarantee.
POTS: Earned value
Governance token credibility requires scarcity and a verifiable distribution process. POTS has fixed supply (21M), deflationary mechanics, and is earned through real protocol revenue — not airdropped or pre-mined. This is what makes it a credible long-term governance asset.