Fungible strategies

Fungible Strategies are based around an underlying fungible asset, such as an ERC-20 token. They accumulate fees to buy configured amounts of that token, list them for resale, and use sale proceeds to buy and burn the Strategy token.

Who can launch?

ERC-20 launches through the current public launcher are permissionless, subject to the token and factory checks. Being able to launch does not automatically grant the underlying token’s royalty rights. The launcher’s authorization checks determine whether a royalty recipient may be assigned.

The current create form uses immediate deployment on Ethereum. The verified payment is 1 ETH plus gas, but the contract’s price is configurable and is read before submission. The queued ERC-721 request delay, factory cooldown, and roughly 1% initial-purchase allocation do not apply to this flow.

A token that already has a registered Strategy cannot be relaunched through the same uniqueness checks.

The trading cycle

At the standard 10% fee, the published fungible Strategy allocation is:

• 8% to the Strategy contract to buy the underlying token.
• 1% for buying and burning $PNKSTR.
• 1% allocated to royalties, subject to the deployed hook’s recipient and fallback settings.

For the current ERC-20 hook, when royalties are unclaimed, that share goes back into the Strategy. At a 10% total fee, this means 9% of the trade funds the Strategy and 1% funds $PNKSTR buy-and-burn. This differs from the NFT hook’s configured royalty fallback.

Fees accumulate toward the purchase of a configured amount of tokens. A bot or other participant submits a purchase when an eligible asset is affordable. The Strategy lists the tokens at its configured markup, commonly 20% above purchase price.

When someone buys the tokens from the protocol, the proceeds are used to buy and burn the Strategy token. This cycle continues as transactions and available assets allow.

Existing Strategies retain their own settings and trading-fee schedules. Check the launch and trading fee guide and the quote for the individual Strategy.