prANA

prANA (pronouned prana) is Nirvana’s governance and revenue share token, earned exclusively by staking ANA. The rate at which prANA rewards accrue to ANA stakers adjusted through community-driven governance.

Continuous Emissions

ANA depositors earn prANA continuously at a variable rate set by governance. Key features of this emission model include:

• Earned prANA can be claimed at any time even after ANA is unstaked.
• Fair Distribution: Governance power is allocated based on the amount of ANA held and the duration of the deposit.

ANA has no minimum stake and no withdraw delay.

Note

Example: you can stake 100 ANA. The annual emission rate is 50%. After 6 months, the amount of prANA earned by you is 25 prANA. After 1 year, you will have earned 50 prANA in total.

There is no fixed supply of prANA. It is distributed based solely on the amount and duration of ANA deposits, ensuring prANA remains equitably distributed. This emissions system incentivizes investors to hold ANA for longer periods to accumulate more prANA.

Depositing prANA

Each market has dedicated valut where users can deposit their prANA. When prANA is deposited, it activates two key features:

• Revenue Sharing: prANA holders receive a share of the corresponding market’s revenue.
• Voting Power: prANA depositors are granted voting power to adjust the corresponding market’s parameters through the decentralized governance system.

Revenue Sharing

Each prANA token represents a share of protocol revenue, which is distributed pro-rata to prANA depositors. The benefits include:

• Incentivizes Long-Term Holding: Since prANA can only be earned by holding ANA over time, it remains scarce. Sharing continuous revenue makes holding prANA valuable.
• Aligns Voting with Protocol Health:
  • Fee Control: Governance, powered by prANA votes, regulates Nirvana’s parameters.
  • Balanced Incentives: prANA holders benefit from fee revenue, encouraging them to set fees that promote both protocol usage and profitability.

Revenue distribution is paid out in NIRV and ANA for the ANA market, and in the underlying reserve asset for navToken markets.