# Tokenomics

Paravel has two-token architecture designed to separate **governance**, **vault exposure**, and **system accounting**.

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## PVL — Governance Token

**Fixed supply: 1,000,000,000 PVL**

PVL is the governance layer of the Paravel protocol.

It is used to:

* Vote on protocol parameters
* Approve new strategies and agent frameworks
* Control vault configurations
* Govern treasury allocation

### Governance Model

* 1 PVL = 1 vote
* Proposals require quorum and supermajority approval
* Governance is fully DAO-controlled

PVL does not represent a claim on vault capital.

It is strictly a governance mechanism for protocol direction and parameter control.

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## iPrVL — Vault Token

iPrVL is the **vault accounting token**.

It is minted when users deposit into a vault and burned when they withdraw.

### Function

iPrVL represents:

* A proportional share of vault assets
* Exposure to the performance of deployed strategies
* Continuous changes in NAV as strategies update in real time

### Lifecycle

* Deposit → iPrVL minted
* Vault strategies generate returns → reflected in iPrVL value
* Withdrawal → iPrVL burned

iPrVL is not transferable governance or utility beyond vault representation.

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## Value Flow

All protocol-generated revenue flows through the system as follows:

1. Vault performance generates fees (management + performance-based)
2. Fees are directed to the **DAO treasury**
3. Treasury allocation is governed by PVL holders

Potential uses of treasury capital include:

* Staked PVL rewards
* Protocol development funding
* Risk reserves
* Community-approved buybacks (if proposed and passed via governance)

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## System Design Principle

Paravel separates three core functions:

* **PVL** → Governance and protocol control
* **iPrVL** → Vault share accounting
* **Vaults** → Capital deployment and strategy execution

This separation ensures:

* Governance does not directly interfere with execution
* Vault accounting remains isolated from protocol governance
* Strategy performance is reflected transparently at the vault level

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## Key Idea

PVL governs the system.

iPrVL represents your position in it.

Vaults generate the returns.

> Governance, capital allocation, and execution are intentionally separated to maintain clarity and control.


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