[PIP 28] POP 2.0 Tokenomics

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This proposal seeks to implement a new tokenomic system that will benefit all current and future Popcorn stakeholders. Please review and provide commentary. This proposal is the result of market research and many discussions internally between Popcorn Core team members.

POP 2.0

POP 2.0 (POP going forward) aligns incentives across all Popcorn stakeholders and is designed to further optimize the following:

  • Protocol revenue
  • Sweet Vault yield
  • VaultCraft utilization
  • POP liquidity
  • POP velocity

New features

  • Vote-locked POP is now a Balancer LP token - Popcorn uses the Balancer 80POP-20WETH LP token as the lock token for obtaining vePOP.

  • Gauges - Staking contract where users stake assets and are rewarded pro-rata depending on vePOP distribution.

  • Reward token is now a call-option for POP - Reward tokens are now call options on POP, or cPOP, enabling the protocol to accumulate much more in cash reserves regardless of market conditions, as well as letting loyal POP holders buy POP at a discounted price.

  • Max boost enabled for Sweet Vaults - Popcorn gives a 10X max boost to LPs who have vePOP, increasing the advantage of holding vePOP.

3 POP Tokens

  1. POP
  • A native token for incentivizing liquidity
  1. vePOP (vote-escrowed POP)
  • Used for voting for governance proposals
  • Used for voting on gauge weights
  • vePOP is based on Curve’s veCRV
  1. cPOP
  • cPOP is a call option token for POP that lets its holder purchase POP at a discount to the market price. cPOP does not expire.


The total supply of POP is 99,999,700 with the following initial distribution:

POP Ecosystem

The total amount of tokens reserved for distribution via gauges, incentives, and grants. These incentives and grants are specifically for users of Popcorn’s DeFi products, and those who make valuable contributions to the protocol.

Early Contributors

Supporters who funded development and operations to build out Popcorn.


Core contributors.


Organizations and individuals who help Popcorn develop and evangelize the product and vision.


The organization committed to bootstrapping the development of the Popcorn smart contracts, driving decentralization, onboarding non-profit beneficiaries, and ensuring the values of the Popcorn Foundation charter are upheld by all beneficiaries.

Liquidity Bootstrapping Pools

Liquidity bootstrapping pools were used to bootstrap liquidity on decentralized exchanges through a fair launch auction mechanism. These pools were launched simultaneously on Ethereum and Polygon and were the first opportunity for the general public to acquire POP to participate in the governance of the network. Proceeds were split between Popcorn Treasury, a smart contract entirely POP token holders, and the liquidity pools on decentralized exchanges like Uniswap and Sushiswap.


This refers to POP token transfers for further decentralizing and rewarding the Popcorn community.

POP Release Schedule


Participating in PopcornDAO governance requires that an account have a balance of vote-escrowed POP (vePOP). vePOP is a non-standard ERC20 implementation each account’s voting power.

vePOP Utility

  • Governance voting: Vote on governance proposals such as listing new gauges, changing protocol parameters, and approving budgets.
  • Gauge weights voting: Vote on how gauge rewards are distributed across different gauges.
  • Boost gauge rewards: Hold vePOP to boost your Sweet Vault yield earned from gauges.
  • Receive bribes for voting: Get rewarded for voting on certain gauges.
  • Receive protocol revenue: Earn a share of the protocol’s revenue

Provide liquidity for vePOP

Users must provide liquidity in the Balancer 80POP-20WETH pool for vePOP. One 80POP-20WETH LP locked for two years provides an initial balance of one vePOP.

For example

  • 2K POP locked for 6 months = 1K vePOP
  • 1K POP locked for 1 year = 1K vePOP
  • 500 POP locked for 2 years = 1K vePOP

Lock duration vePOP exchange value is subject to change.

vePOP new staking pool formula:


  • b* is the weight,

  • b is the liquidity provided by the farmer,

  • B is the total liquidity of the pool,

  • w is the amount of vetokens the farmer has,

  • W is the total vetoken supply.

This means if a farmer holds no vetokens then their weight in the staking pool is zero, forcing farmers to also be token holders and LPs for the token, which further disincentivizes farming-and-dumping.

Since all farmers are LPs and all LPs are probably farmers, the incentives going towards the farmers also incentivizes LPing, so the staking reward serves two purposes simultaneously: incentivize protocol usage and incentivize LPing.


There are two options for unlocking locked vePOP:

  1. waiting until your vote lock expires and unlocking penalty-free
  2. unlock POP at a cost:

The penalty = min(0.75, (time left until unlock/2). Penalties are redistributed back to the remaining vePOP holders pro-rata.


cPOP is a call option token for POP that lets its holder purchase POP at a discount to the market price. Unlike regular options, cPOP does not expire. The discount price is set by PopcornDAO governance.

cPOP rewards

cPOP is given to Popcorn liquidity providers as an incentive. You will need to provide liquidity on Popcorn and stake in gauges to receive cPOP incentives.

Why cPOP?

Replace POP rewards with cPOP rewards is a strategic move to accumulate more in protocol revenue that can be used for buyback and hiring additional resources, for example, and lets loyal POP holders buy POP at a discounted price.

cPOP example:

Let’s say POP is $100 and a call option gives user cPOP the perpetual right to buy POP at 90% of market price. Popcorn issues 1 cPOP to farmer Bob who immediately exercises the option to buy 1 POP for $90 and sell it on a DEX for $100.

Total gains & losses:

  • Popcorn protocol: -1 POP, +$90
  • farmer Bob: +$10
  • DEX LPs: +1 POP, -$100

VS. total gains/losses for straight POP farming:

  • Popcorn Protocol: -1 POP
  • Farmer BoB: +$100
  • The DEX LPs: +1 POP, -$100

We have the following observations, where cPOP achieves:

  • Incentivization efficiency for protocol cashflow - The higher the discount, the more efficient incentivization, at the expense of protocol revenue.

  • Revenue reallocation - Revenue generated by farmers is not transferred to the Popcorn protocol, without effecting the LP.

  • Continuous token sale - Users are incentivized to LP the Balancer 80POP-20WETH pools to acquire POP at a discounted price and then sell on the market.

  • Much higher protocol revenue - Users are incentivized are incentivized to LP the Balancer 80POP-20WETH pools to acquire POP at a discounted price and then sell on the market.

Overtime, protocol ownership will be transferred to LP’s and the to the farmers who are providing liquidity. Given POP can now be acquired at a discount only if a user provides liquidity, we can assume there to be less sell pressure as users would want to increase their vePOP to improve their yield on Sweet Vaults via gauge as well as earn protocol revenue.


cPOP incentives are distributed among different gauges based on how vePOP gauge distribution. POP LPs stake their LP tokens in gauges to receive cPOP incentives that are distributed to the Sweet Vault gauges.

Popcorn gauges are based on Curve gauges. Read the Curve docs to learn more.

cPOP example:

  1. Provide liquidity to a Sweet Vault that has a gauge
  2. Stake your LP into the gauge
  3. cPOP rewards are distributed over time, which need to be claim from the gauge contract


vePOP holders can boost the amount of cPOP rewards in gauges by increasing the size of their LP positions. Meaning liquidity providers would need to increase the size of their position in the Balancer pool. The weight of a liquidity a provider is determined using the following formula:

Max boost is 10X with this formula, which makes holding vePOP much more attractive and should theoretically increase the LP holder rate.

w is the weight,

l is the liquidity provided by LP
L is the total liquidity of the pool,
v is the amount of vetokens the LP has,
V is the total vetoken supply.

Staking weight is relative as other stakers can also stake in the same gauge, meaning the amount of boost you receive dependends not only your vePOP balance, but the balance of others as well.


0 rewards are distributed to Sweet Vault LP’s if users don’t have hold vePOP.

Protocol Revenue

Currently, Popcorn charges the following fees on Sweet Vaults

  • Deposit Fee: 0%
  • Withdrawal Fee: 0%
  • Performance Fee: 10%
  • Management Fee: 0%

This is subject to change depending on governance.

Revenue to Treasury

The Popcorn treasury collects protocol revenue. Governance can pass proposals on how to distribute the revenue.


To be eligible for cPOP rewards, users are required to provide and lock liquidity in the 80/20 pool for vePOP, which allows them earn cPOP rewards via gauges. To boost rewards on Sweet Vaults, users will need to stake their Sweet Vault shares in the Sweet Vault gauges for cPOP rewards. Gauges can also be used for staked assets in the future.


Interesting, so I’m looking at https://dune.com/bored_genius/bunni given this is very much based off bunni.pro. Looks like ~$850K in ETH was used to exercise oLIT options. That’s definitely a good sign…

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I think adding quarterly burns, or a systematic burn, is crucial as well…

Hello! I need help. Some time ago I was trying to claim pop tokens after IF sale on the pop network rewards page. But after claiming I didn’t get tokens and they gone from the page. I’ve tried several times with no luck. I’ve try again today and all have been the same. I don’t understand how to get tokens. TX ID for BSC: 0x055012baab22cbe6b8542b4b9487a373b95e989ac1cce6227166614cef82d652 and 0x19ff831bd14cb40bbb3919a016a896a0b4be94fe35df2c4d67799eaa9d2bb2b0

Hi, kindly submit a ticket on our discord and we will get this sorted out.