Executive Summary

The PACT Foundation supports a decentralized financial ecosystem dedicated to bridging lending origination in emerging markets with capital access in developed markets by supporting the development of the PACT protocol. By leveraging blockchain-based technology and strategic partnerships, PACT aims to transform the private credit markets by introducing a transparent, standardized, and efficient lending framework. Our protocol enables secure and transparent lending, where RWAs are tokenized and originated natively on-chain, providing lenders and borrowers with a decentralized platform for financing. The natural demand for credit drives wallet creation, giving us an opportunity to reach a huge, currently underserved user base around the world, which can then be leveraged to offer new products to drive protocol engagement and fees. 

$PACT is a governance and rewards token developed to support a decentralized, on-chain real-world asset (RWA) lending protocol. We want to encourage long term holding of $PACT in the ecosystem, and have incentives to stake for longer periods. When staking, holders receive a synthetic token, vePACT, which gives governance rights and enables them to receive periodic rewards determined by the protocol.

Note that, if the proposal is approved, these tokenomics replace the former use of $PACT as a governance token for the now defunct UBI project impactMarket.