As Paladin's premier offering, Quest achieved product-market fit last year, and now that Quest v2 is fully operational, the next step is to develop the synergies between the PAL token and Paladin’s flagship product. By integrating Quest seamlessly with our tokenomics strategy, we aim to establish a leading position in the voting incentives market, thereby enhancing interest in the PAL token. This marks the beginning of PAL 2.0, the vote flywheel.

The revised tokenomics framework will allow holders of hPAL to manage the distribution of PAL emissions and DAO revenue, denominated in ETH, across various Quests. This enhancement will boost yields for Quest voters without imposing additional costs on Quest creators. Ultimately, Quest is set to become the most cost-effective platform for deploying incentives and the most rewarding for voters.

The flywheel

The Vote Flywheel initiative is strategically designed to achieve four principal objectives:

  • Position Paladin as the foremost lucrative voting incentive platform for both voters and projects.

  • Amplify demand for the PAL token.

  • Motivate users to maintain long-term holdings of PAL tokens.

  • Allow holders of hPAL to participate in decision-making regarding the allocation of new PAL emissions among various Quests.

This structure is intended to increase the yield available to Quest voters without imposing additional costs on Quest creators.

In practice, Quest creators are incentivized to purchase and lock PAL tokens into hPAL. This action grants them a greater share of the boosting power provided by the Vote Flywheel, thereby enhancing their competitive advantage within the platform.

Consequently, this mechanism is expected to escalate demand for PAL tokens, reducing their availability in the market and potentially driving up their value. Quest creators, thanks to their commitment to the Vote FLywheel, can offer more substantial incentives for voting participation in their Quests, which in turn leads to higher yield for voters. This enhanced yield is anticipated to attract more participants to the Paladin platform, ultimately benefiting Quest creators through increased rewards from the DEX emissions for the liquidity pools they support, bolstered by the increased voting activity on their incentives.



Loot is a combo of PAL & WETH. The WETH part of the LOOT is the real yield distributed to the voters involved in the Vote flywheel. These rewards will come from the excess of revenue generated by Paladin. It will make Paladin the first voting incentive marketplace redistributing part of their revenue, making it the best marketplace for voters.


The vesting for the Vote Flywheel rewards will be 28 days only applied on the PAL rewards. It will be a linear vesting over the period but if the user decides to exit early he would still get his revenue sharing share but only the unvested PAL on the day he decides to claim. The rest of the PAL rewards will be slashed.

Whitelisting process

The whitelisting process has been detailed in this governance post. Anyone can propose the whitelisting of any mainnet Quest. You can find the first set of whitelisted Quests below:

Curve, Balancer and Bunni Quests

F(x) Quests

Last updated