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PUNCH DOCS: LOSE-TO-EARN

THE WORSE THE TRADE, THE BIGGER THE MULTIPLIER.

Trade-to-earn (T2E) is the core Punch mechanic: deterministic PUNCH emissions per dollar of trading volume, with the multiplier keyed to outcome. These are capped activity emissions, not yield, and they never exceed the fees and losses that produced them.

THE MULTIPLIERS

1X

STANDARD

Close a trade in profit. You still earn PUNCH on every dollar of volume.

3X

TRIPLE

Close a trade at a loss. Triple emissions on the same volume.

5X

QUINTUPLE

Get liquidated. Maximum emissions. The worst trade pays the best rate.

HOW EMISSIONS ARE CALCULATED

  • Deterministic per dollar. Every dollar of closed volume earns a published base rate of PUNCH, multiplied by the outcome tier. No lottery, no points-era vibes-based scoring.
  • Bracketed by pool TVL. The base rate scales with the local pool's TVL bracket, so emissions stay proportionate to the liquidity actually supporting the market.
  • Epoch capped. Each epoch has a hard emissions ceiling. When the epoch budget is spent, accrual stops until the next epoch.
  • Lifetime capped. T2E draws from a fixed slice of the 725M emissions allocation, released on a published schedule. When it is gone, it is gone. The 1B hard cap has no inflation escape hatch.

WHY YOU CAN'T FARM IT

Emissions are calibrated so that the value of PUNCH earned is less than the round-trip fee cost of generating the volume. Wash trading Punch is a machine for donating fees to KLP holders.

LOSS COMPENSATION, BUILT IN

Losing pays through the multiplier itself: a realized loss earns 3x on your eligible volume, and a liquidation earns 5x, all from one allocation with one set of caps. It is a consolation prize, not insurance, and it never comes close to making a losing strategy whole.

WHAT DOESN'T COUNT

DEGEN VAULT VOLUME IS EXCLUDED AT LAUNCH

When the dKLP degen vault ships on Robinhood Chain, its volume earns no T2E multipliers, no points, and no airdrop weighting until its risk modules have a real track record. A 5x liquidation multiplier on markets where a token team can move the spot price would be a self-liquidation machine, so it is excluded from every incentive ledger by design. See Architecture.

Incentive eligibility also enforces the same jurisdiction rules as the trading interface, applied at claim time. See Risk & Disclosures.