Most of the Inverter team members began their Web3 journey with high-level systems engineering and token design agencies like BlockScience, Curve Labs and Token Engineering Commons, which are responsible for the R&D behind many innovations in token and system engineering, including Filecoin’s issuance curve, Balancer LBP mechanisms, and some of the earliest AMM curve research and implementations.
Based on the pain points that we have observed in our experience with doing mechanism design on blockchain, The Inverter team has begun as an RnD coalition dedicated to developing a modular infrastructure capable of supporting a wide range of dynamic token economy designs with unique features and capabilities. On top of the team members and their expertise, Inverter also onboarded most of the top level token engineers and token engineering agencies to its orbit due to the new technical capabilities that its protocol infrastructure enables for token economies. 

In short, PIMs enable projects to perpetually capture value from their token economies by facilitating dynamic token issuance with programmable distribution. In the initial version of PIM, bonding curves are utilized as the main dynamic issuance mechanism.

Key Features of Primary Issuance Markets (PIM):

Dynamic Token Issuance and Pricing: PIMs utilize algorithmic pricing for minting and redeeming tokens, which includes a reserve ratio and trading fees. This setup allows projects to dynamically adjust token supply based on market conditions and project needs.

Market Value Capture: PIM allows projects to profit from their tokens' trading volumes and volatility, capturing value from the token activity that previously only benefited external parties like third-party market makers and exchanges.

Sustained Treasury Growth and Stability: Proceeds from token issuance contribute to increasing project reserves, establishing a price floor, growing the treasury, and supporting long-term development without dumping on the community.

Arbitrage Opportunities: Protocol-owned arbitrage agents ensure price stability and generate additional revenue when secondary market prices diverge from PIM-set prices.

Primary Issuance Market Stack (PIM Stack)
Inverter’s Primary Issuance Market (PIM) stack is designed to enable projects to seamlessly configure and operate the full life cycle of token economies. PIM stack enables builders to customize token issuance, utilities, and circulation for custom use cases.

Key Features of Inverter’s PIM Stack:

Plug & Play DeFi Functionalities: Inverter offers reusable, upgradable, and interoperable DeFi integrations, allowing subnets to design token economies without needing contract development.

Algorithm Library: Custom algorithms, such as dynamic pricing, condition the issuance logic of tokens through issuance curves, optimizing the token economy.

Agent Library: Projects can activate verifiable arbitrage agents to market-make for their PIMs, optimizing issuance parameters based on real-time data, credit scoring, and additional services.

