POTS Bid Module

The bridge between Pots Money and Pots Market. PBM transforms IBS protocol revenue into $POTS governance tokens — not through a sale, but through a transparent, on-chain 500-day auction that rewards long-term IBS stakers.

Key Takeaways
  • PBM converts IBS protocol revenue into $POTS governance tokens — not a sale
  • Revenue is collected as BTCB and injected daily into the POTS/BTCB pool over 30 days
  • 500-day deflation auction: 0.5%/day removed, shifting from 80% burn → 80% redistribution
  • Only IBS stakers receive redistributed POTS — general users cannot participate
  • After 500 days: taxes removed, ownership renounced, POTS becomes free-floating DAO token
Full Flow

From IBS Revenue to POTS Distribution

Four stages, each building on the last — from unlock tax to permanent DAO governance.

01
Tax → BTCB → PBM Treasury

Revenue Collection

When an IBS staker unlocks, a Co-Building Fund Tax is applied — 30% for immediate unlock, 0% for 30-day linear unlock. This USDT tax is automatically converted to BTCB and stored in the PBM Treasury. BTCB serves as the hard reserve: non-inflationary, globally recognized.

02
Revenue ÷ 30 → daily injection

Scheduled Daily Injection

Each settlement cycle's revenue is divided into 30 equal portions. One portion is injected daily into the POTS/BTCB liquidity pool. This prevents large destabilizing liquidity events and creates a steady, predictable capital flow — 30 days of controlled injection per cycle.

03
0.5%/day → burn + redistribute

500-Day Deflation Auction

Once POTS enters the pool, the auction begins. Every day, 0.5% of the current pool balance is removed and split between burning and redistribution to IBS stakers. The split shifts gradually — early days heavily favor burning, late days heavily favor staker redistribution. Stakers who sell POTS back into the pool replenish it, extending the auction.

04
Permanent → DAO-owned

Full Decentralization

When the 500-day auction concludes, four irreversible actions execute: protocol-owned liquidity migrates to a standard DEX pool, all POTS buy/sell taxes are permanently removed, transfer restrictions are fully lifted, and contract ownership is renounced. No entity can ever modify the POTS contract again.

Deflation Schedule

How the Burn/Redistribution Ratio Shifts

The 500-day auction is path-dependent — daily outcomes depend on pool balance and staker sell-ins.

Phase Day Burned Redistributed to IBS Stakers
Early Day 0 80% 20%
Mid Day 250 50% 50%
Late Day 500 20% 80%

In a pure deflation scenario (no sell-ins), the pool reaches approximately 8.2% of its initial size after 500 days. In practice, staker sell-ins replenish the pool continuously — extending the auction and increasing total POTS distributed over time. More active stakers → larger daily redistributions.

Who Participates

PBM Is Not a Public Sale

Access to POTS through PBM is gated by IBS staking — not open to general purchase.

Participant Can Buy POTS? Receive Redistributed POTS? Can Sell POTS? Notes
General Users ✗ No ✗ No ✓ Yes Can sell POTS if received via other means
IBS Stakers ✗ No ✓ Yes ✓ Yes Receive daily redistribution; can hold or sell back
Token Comparison

IBS vs POTS — Two Different Assets

Same ecosystem, fundamentally different roles. Understanding the difference matters before participating.

$IBS $POTS
Type Algorithmic monetary token Governance token
Supply Algorithmic (expands / contracts) Fixed, deflationary
Primary Use Bonding, staking, liquidity Governance, prediction market incentives
Backing LP + RBS + Safety Treasury Protocol revenue + BTCB treasury
Distribution Bond purchases, algorithmic emission PBM auction (500 days)
Post-Distribution Perpetual operation Free-floating DAO governance
FAQ

PBM Questions

What stakers and researchers ask about the POTS Bid Module.

Frequently Asked Questions

01 What is the POTS Bid Module?
Bridge between Pots Money and Pots Market. Converts IBS protocol revenue (collected as BTCB) into $POTS governance tokens distributed to IBS stakers over a 500-day on-chain auction.
02 Can I buy POTS directly from PBM?
No. Not a public sale. Only active IBS stakers receive redistributed POTS daily. General users cannot purchase from the pool.
03 How does the 500-day deflation work?
0.5% of pool removed daily — split between burn and redistribution. Ratio shifts: Day 0 → 80% burn / 20% redistribute. Day 500 → 20% burn / 80% redistribute. Staker sell-ins extend the pool and increase redistribution.
04 What happens after 500 days?
Permanent decentralization: LP migrates to standard DEX, all taxes removed, whitelist lifted, contract ownership renounced. POTS becomes free-floating DAO governance token.
05 What is the difference between IBS and POTS?
IBS: algorithmic, variable supply, powers bonding/staking/liquidity. POTS: fixed supply, backed by protocol revenue + BTCB, distributed via PBM, used for ecosystem governance.
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