# PENGU Strategy

![](/files/a7yglf0WzAYCcqMyHasT)

Welcome to PENGU Strategy — The Perpetual PENGU Machine on the Abstract blockchain.

This documentation provides an overview of the protocol's design, tokenomics, and reward mechanics built around automated $PENGU buyback cycles and holder rewards.

## Sections

* [Overview](/pengu-strategy/pengu-strategy.md)\
  Core protocol concept and $PENGU buyback logic.
* [Tokenomics](/pengu-strategy/tokenomics.md)\
  1B PST supply, fair launch, fee mechanics, no extra minting.
* [Fees & Distribution](/pengu-strategy/fees-and-distribution.md)\
  10% trade fee breakdown: buybacks, treasury, rewards split.
* [PENGU Operations](/pengu-strategy/pengu-operations.md)\
  How PENGU is bought, sold (x1.1 markup), and CEX price protection.
* [Dividends](/pengu-strategy/dividends.md)\
  Weekly reward distribution, epochs, holder multipliers.

## Summary

PENGU Strategy establishes a self-sustaining on-chain economy where:

* **Trading generates fees** — Every PST transaction contributes 10% to the system
* **Treasury splits funds** — 8% treasury allocation: 70% for PENGU trading operations, 30% for weekly dividends
* **PENGU traded with markup** — Purchased PENGU formed into lots, sold at x1.1 markup when PENGU|ETH price allows
* **CEX price protection** — All trades verified against centralized exchange prices to prevent manipulation
* **Profits burn PST** — 100% of PENGU sale proceeds automatically buy back and burn PST tokens
* **Weekly dividend epochs** — Holders receive PENGU dividends based on daily snapshots and holding duration

The longer you hold during each 7-day epoch, the greater your reward multiplier — holding for the full week with all 7 snapshots provides 7x the rewards compared to only the final snapshot.

Every transaction strengthens the PENGU ecosystem, reduces PST supply through burns, and rewards long-term holders through the automated dividend system.

## 🔗 Useful Links

* [**🌐 Website**](https://pengustrategy.net)
* [**🐦 Twitter**](https://x.com/PudgyInvest)


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