4. Token Economy

The PADO token economy is designed to achieve two key objectives of the PADO platform: establishing a stable payment system and enhancing the long-term value of the PADO token. To accomplish this, PADO integrates several key elements, including the internal settlement token (THBP – Thai Baht PADO), VIP memberships, token swap pools, Payment Stabilization Pool (PSP), and token-burning mechanisms. Below is a detailed explanation of each component and its role, along with supporting mathematical models.

4.1 Establishing a Stable Payment System

THBP Implementation and Payment Process

What is THBP (Thai Baht PADO)?

THBP is an internal settlement token used within the PADO payment system, pegged 1:1 to the Thai Baht (THB).

When a user initiates a payment, PADO tokens are automatically converted into THBP, ensuring that transactions remain unaffected by external market volatility.

This mechanism guarantees that all payments maintain a stable and predictable value.

THBP Conversion Process:

1. When a user requests a payment, the corresponding PADO tokens are instantly converted into THBP.

2. The converted THBP is used to settle the payment, and upon completion, the used THBP is immediately burned.

- This process can be represented as follows:

$$PADO\ token \xrightarrow{Convert} THBP \xrightarrow{Settlement\&Burn} \emptyset$$

- Through this system, PADO ensures that transactions remain free from price fluctuations, offering users and merchants a stable and seamless payment experience.

Role of the Payment Stabilization Pool (PSP)

Core Functionality of PSP

The PSP acts as a buffer fund that mitigates price fluctuation risks between transaction approval and THBP conversion.

• If the real-time PADO token price $P(t)$ deviates from the reference price $P^*(t)$, the PSP intervenes to adjust for the price difference:

$$\Delta P(t) = P(t) - P^*(t)$$

• This price deviation $ΔP(t)$ triggers an automatic PSP intervention, injecting the required stabilization funds.

Formula for PSP Fund Requirement

The required PSP stabilization fund is calculated as:

$$PSP_{Req}(t) = \frac{|∆P(t)|}{P^*(t)} \times V_{THBP}(t)$$

where $V_{THBP}(t)$ represents the total THBP generated for transactions at a given time t.

Handling PSP Overload

If the PSP’s available funds P are exceeded by total transaction requests,

$$U + x > P$$

the system temporarily halts approvals to prevent instability.

Simultaneously, additional liquidity is sourced from the Swap Pool and BTC/ETH staking reserves to increase the PSP limit:

$$P' = P + \Delta P$$

This dynamic approach ensures that PSP remains stable even during transaction surges, maintaining a robust payment system.

4.2 Enhancing Long-Term PADO Token Value

The long-term value of the PADO token is reinforced through multiple mechanisms. These strategies increase demand for PADO while gradually reducing its circulating supply, leading to greater scarcity and price appreciation.

Increasing Demand Through VIP Membership & Token Swap Pools

VIP Membership System

Users who deposit or stake BTC/ETH in the PADO platform receive NFT-based VIP memberships (Silver, Gold, Platinum, Black).

• Higher-tier members enjoy exclusive privileges, including hotel upgrades, private tours, and VIP lounge access.

• To maintain VIP benefits, members must continuously hold and stake PADO tokens, reducing token circulation.

Token Swap Pool

The PADO Swap Pool allows users to exchange PADO tokens with other cryptocurrencies.

• During swap transactions, the exchanged PADO tokens are temporarily removed from circulation, reducing supply.

• Participants in the swap pool receive additional rewards and incentives, encouraging continuous liquidity provision.

Supply Reduction Through Token Burning Mechanisms

Burning Transaction Fees

A portion of transaction fees from PADO payments is automatically burned, reducing token supply.

Burning VIP Membership Fees

A percentage of VIP membership registration and renewal fees is burned, further decreasing supply.

Locking Tokens in Staking & Swap Pools

Users who stake tokens or contribute to the swap pool have their assets locked for a specific period, preventing immediate market circulation.

• This controlled reduction in supply increases scarcity, reinforcing long-term price stability and appreciation.

Summary of PADO Token Economy Mechanisms

The PADO token economy integrates the following four key elements:

1. THBP Payment System:

• Ensures that PADO tokens are converted into THBP, maintaining stable transaction values.

2. VIP Membership & Token Swap Pool:

• Encourages long-term token holding through NFT memberships and liquidity participation.

3. PSP (Price Stabilization Pool):

• Absorbs PADO price fluctuations during transactions, ensuring stable payments.

• In case of PSP overload, the system halts approvals and expands liquidity sources.

4. Token Burning & Staking Lock-Up:

• Transaction fees and VIP membership fees are partially burned.

• Staking and swap pool contributions lock tokens, reducing circulating supply.

Expected Benefits of PADO Token Economy

Stable Payment Environment:

• The integration of THBP and PSP ensures that users experience consistent and reliable payments, free from market volatility.

Token Value Appreciation:

• VIP memberships, swap pool participation, and burning mechanisms systematically reduce token supply, leading to long-term value growth.

Sustainable Ecosystem Growth:

• A stable payment system combined with incentives for long-term holding encourages continued user participation. This contributes to a thriving and self-sustaining ecosystem.

The PADO token economy is a comprehensive framework designed to balance short-term stability with long-term value appreciation. By seamlessly integrating payment stability with supply reduction mechanisms, PADO provides a secure, scalable, and sustainable financial model that benefits both users and investors.