First off, we want to thank you all for the support, feedback, suggestions, and patronage as we close out Phenom’s first full year since launching. It’s already been quite the ride but we are very excited for what lies ahead. When we started this journey, we set some core directives: to build a poker site that actually listens to the people who play on it. To always put the poker community first. Listening is only part of the equation. We also have to take action. So we’ve been hard at work gathering feedback from the players about what you like, what you don’t like, and what can be improved. There has been some recurring themes and we’ve come up with some improvements to our model that we’re excited to share with you today. These changes are designed to reward conviction, stabilize our economy, and position Phenom for future growth.

Without further ado…

Introducing PHNM staking and Time-Weighted Revenue Share

Currently, rev-share is a flat 50% of net rake distributed weekly to all holders. To incentivize long-term holding, we are introducing Staking with Time-Weighted Revenue Sharing. The longer you commit your tokens, the larger your "slice" of the 50% pool. If you prefer not to stake at all, your tokens will be liquid and available for immediate swap/sale.

How It Works:

When a player stakes PHNM, they choose a lock-up period. This generates a Yield Multiplier applied to their share of the weekly 50% net rake distribution. They can lock anywhere from 1 week to 104 weeks (2 years) and the multiplier is on a sliding scale with example milestones as follows:

• Liquid: No rev share but the token is liquid (and also tradable)

• 1 Month: 0.2x Multiplier

• 3 Months: 0.4x Multiplier

• 6 Months: 0.7x Multiplier

• 12 Months: 1x Multiplier

• 24 Months: 1.5x Multiplier

To calculate the weekly revenue share under the new time-weighted model, we multiply the number of tokens times the multiplier to produce Staking Points. These points represent a player's actual "claim" on the revenue pool. To calculate the total Staking Points, we must know the breakdown of PHNM tokens in each staking bucket, and from there we can calculate Real Yield.

The below example table breaks down the yield for each staking bucket based on $200,000 weekly gross rake and a $2.00 token price.

Yield per Staking Bucket

Assumes $100k Weekly Rev Share and 39M Total Staking Points.

*the above table is an example scenario. The actual yield will fluctuate and depend on number of tokens in each staking bucket (total staking points), total revenue share for the week, and the current price of PHNM.

Why we are introducing this change

We’ve noticed over the last year that many people treat PHNM differently. Some treat it like a cash reward while others are accumulating and value the revenue-sharing properties of the token. The former group doesn’t value the dividend at all, while the latter group values it tremendously. This solution allows a PHNM holder to choose what they value - liquidity or yield. More rewards go to the people who are long-term aligned with the platform. This incentivizes holding the token and long term conviction.

Boosting PHNM Utility: Staking enhanced Rakeback Rewards

Another token feature (and reward for staking) is boosts to player rewards. Stake your tokens to unlock additional boost to rakeback. The most loyal players can now get to 39% rakeback.

Rethinking Redemptions: PHNM free floating price and Emissionless Rewards

In our current model, the Phenom Treasury is the only “buyer” of PHNM. We distribute tokens as rewards and allow users to Redeem those tokens for USDT at a fixed price. Here is what we’ve learned:

• It has proven impossible to predict redemption demand in advance, making it extremely difficult to model cash flows and invest in growth. In other words - people redeem tokens at different times, in different amounts, and for different reasons with little correlation to price. If we can’t predict or model our runway or ability to invest in growth, we have a challenging path to take Phenom to new heights.

  
  

• We are blocking people who want to be PHNM holders. One of the core reasons for making PHNM non-transferable is we wanted to only have real members of the poker community to own Phenom Poker. What we’ve learned over the last year is there are many people in our community who don’t necessarily play a lot of online poker - backers, agents, affiliates, gamerunners, live players who don’t play online - these people are all important parts of the poker ecosystem and many have expressed an interest in buying/holding PHNM but who don’t currently have a path to do so since we’ve only distributed it as a player reward.

  
  

• The current model doesn’t do a sufficient job of decentralizing. While we are proud to have created nearly 5000 PHNM token holders, we have noticed something: Many of the tokens that get distributed as player rewards just come right back to the Treasury in the form of redemptions. The net result is we are decentralizing but very slowly. Opening up the possibility of PHNM ownership to anyone who really wants it will put platform ownership in the hands of more holders and give Phenom greater exposure.

  
  

• Redemptions have a “vampiric” effect on Treasury funds. It is challenging to grow a new online poker site in such a competitive environment. Our competitors have bigger brand names, a bigger marketing budget, and established networks of affiliates. Its even more challenging when we are forced to buy back the token at any given time regardless of whether we are profitable or not. Decoupling redemption demand from the Treasury will put us in a position to grow faster, in a healthy, predictable way.

So we are proposing 3 major changes:

• Create a DEX Liquidity Pool initially funded by the Treasury

• Allow the market to decide on the price of PHNM

• Allow players to choose USDT as a rakeback reward option or use reward to auto-purchase PHNM at the current price

We realize there will be some fears related to a free floating market price versus the current fixed price model but we think this will ultimately be a very healthy change tor Phenom while giving the token greater upside. We also believe the market will ultimately value the token based on platform revenues (like it is today) because that’s where the value of the token ultimately lies - its a claim on revenue. But PHNM has many other attractive qualities we think the market will like:

• PHNM has no inflation - 50 million tokens that’s it

• No clever financial engineering to generate yield - Yield comes from REAL REVENUES and a REAL PRODUCT with thousands (and growing) of loyal users

• Liquid supply will be scarce - And that supply should shrink with time as new buyers decide to stake and receive yield

• New emissionless rewards model creates automatic weekly buy pressure instead of automatic sell pressure

• The Phenom Treasury will also be strategically buying tokens off the open market and staking them to further create price stability and drive value back to existing holders

What to Expect and Timeline

• We will be migrating the PHNM Token over to Base Network via Burn and Mint in the next few weeks (we also plan to migrate the rest of our Smart Contracts to Base during 2026)

• We are targeting new token trading to be ready by end of January

• We are suspending revenue share payments and using those funds to fund the initial Liquidity Pool. Once we cut over to the new token, revenue share payments will resume as Staking Rewards

We are thankful for everyone who has joined us on this journey so far to create the most player-centric poker site possible and we are excited about what's to come. Onward!

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