Pen-X: Building a Decentralized Pension Fund for Web3

4 min readMar 19, 2022



  • We’re announcing Pen-X, an Investment DAO that provides secure retirement benefits for the workforce of Web3.
  • Our mission is to give the next generation of Web3 businesses critical pension infrastructure to offer employees complete control of their financial future and maintain their standard of living in retirement.
  • With a hybrid community/expert management structure, we’re offering the blockchain industry a Pension Fund that is broadly diversified across on-chain assets to achieve long-term, stable returns in all market environments.
  • The PENX governance and utility token powers the organization and incentivizes fund loyalty. The vast majority of the token liquidity is allocated to the community.

Over the last three years, DeFi has seen unparalleled innovation. Teams worldwide are working tirelessly to create the next global financial system from the bottom up. With a vast market opportunity, we stand at the precipice of a new financial era.

The shift to Web3 has rightfully left behind aspects of traditional employment that are no longer fit for purpose. Unfortunately, there have been unintended collateral damage, namely, employment benefits. Perhaps the most critical of those benefits is the workplace retirement/pension scheme.

The move to Web3 has inadvertently resulted in a growing workforce with little to no pension savings. This needs to be rectified.

However, in the traditional retirement industry, pension funds are not without their problems. Capital is invested in a highly opaque manner, with holdings only reported quarterly. Moreover, pension funds struggle to honour payouts and access to high-quality funds is limited based on geography. Perhaps most problematic is the substantial size of investment typically required to reach sustainable payouts for a comfortable retirement.

So, instead of having institutions construct these opaque pension structures that don’t seem to work, can smart contracts and a DAO act as your pension fund?

We believe they can — with the maturity of smart contract infrastructure, the rise of DeFi, and a demand for more transparency and community control, Pen-X capitalizes on a vast market opportunity to disrupt the Pension Industry and offer web3 workers complete control of their financial future and maintain their standard of living in retirement, regardless of wealth, nationality or employment status.

Introducing Pen-X

The Pen-X Protocol is the digital product behind Pen-X, designed via smart contracts for organizations to integrate a decentralized pension fund straight into their payroll systems.

It enables workers and employers to contribute to a retirement pension plan without jeopardizing privacy and security.

As the first mover in the space, Pen-X has an enormous opportunity to grow into a leading provider of decentralized pension plans, starting in the Web3 worker industry and moving to wider-spread adoption over time.

As part of this growth strategy, Pen-X will collaborate with leading crypto and Web3 businesses to provide their workforce with a pensions fund and retirement planning.

A central part of the Pen-X mission is to improve people’s lives. The Pen-X Foundation will be responsible for investing 10% of Pen-X’s management fees into non-profit Web3 research projects that help make Web3 a safer workplace.

The Pen-X Funds

The core products of Pen-X are its funds; structured investment vehicles built on the Set Protocol, intended to be used for long-term retirement savings.

We use yield farming and volatility-controlled strategies to achieve long-term retirement savings for the workers. The Pen-X Pension Fund takes a “best of both worlds” approach; broadly diversifying investment across both worlds of asset classes:

  1. Crypto assets, such as cryptocurrencies, DeFi project token baskets, and yield farming strategies; and
  2. Non-Crypto assets that have been tokenized on the blockchain, such as Digital S&P500 or Digital Gold.

While a traditional pension will lock your funds away for the decades until you retire, Pen-X leaves you in control of your funds, allowing investors to withdraw funds at any time. Pen-X heavily incentivizes longevity in its funds through a transparent reward scheme using its PENX Token.

The PENX Token

The PENX governance and utility token is the driving force behind the Pen-X ecosystem.

PENX holders will assert control in the DAO by voting on off-chain proposals that impact governance within the Pen-X product and governance ecosystem.

Imagine a pension fund where every customer is also a board member, where customers participate in the fund and have a say in where capital is deployed and how the fund is strategically managed.

Looking Forward

We will announce the exact launch date of the Pen-X Pension Fund soon with a blog post outlining details about the launch. In the meantime, we need your help!

Pen-X is brought to you by @Ionic_eth & @Alaska_eth but will be launched with those who choose to join us. We believe that everyone deserves to look forward to growing old.

We are looking for team members, key partners, and fellow innovators interested in mutually beneficial collaboration. We are also hiring contributors, part-time workers, and full-time roles who have a strong interest in DeFi to help us build Pen-X’s magic.

Say hello on our Discord server to join the conversation and support an ageing global society.




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