Phenom Poker opened 2026 with a major update to its ecosystem: its native token, PHNM, is moving to the open market. The change reshapes how players earn rewards, how ownership works, and how the platform plans to scale going forward.
At a high level, two things are changing. PHNM will be listed on a decentralized exchange, meaning its price will be set by supply and demand rather than the platform itself. And instead of receiving rakeback directly in PHNM, players will now earn USDT, with the option to automatically buy or stake PHNM if they choose.
Despite the noise surrounding the announcement, Phenom says its core mission hasn’t changed: giving players a genuine stake in the poker site they help build.
Why the Phenom Token Exists
According to CEO Matt Valeo, PHNM was created to solve a long-standing imbalance in online poker. Traditional platforms generate massive rake, but all of that value flows to private owners. Players never share in the upside.
Phenom’s idea was to flip that model by tokenizing ownership and distributing it to the people actually playing on the site. Instead of rake disappearing into a black hole, players could hold a real claim on the platform’s success.
How the Original Token Model Worked
Originally, PHNM operated in a closed system. Tokens could only be earned through rakeback or referrals and could only be redeemed through the Phenom treasury. There was no open market and no way to buy tokens directly.
The goal was to keep ownership in the hands of the community and avoid outside speculation. In theory, that sounded ideal. In practice, it created serious constraints.
Because the treasury was the only source of liquidity, the entire system depended on predictable redemption behavior. That predictability never materialized.
Why the Model Broke Down
Redemptions didn’t follow any logical pattern. Players redeemed tokens after losing sessions, during personal emergencies, or simply because they wanted liquidity. Even ambassadors redeemed small amounts.
The result was uncertainty. Without being able to model redemptions, Phenom couldn’t budget accurately. And without a clear budget, growth spending had to stay extremely conservative.
Valeo describes the situation as trying to grow a startup while being permanently handcuffed.
Why Phenom Chose the Open Market
The breakthrough came with a simple realization: the system was blocking both buyers and sellers.
Some users wanted to cash out of PHNM, while others believed strongly in the project and wanted to buy in but didn’t play enough poker to earn tokens. The closed loop prevented both.
Opening the token to the market solves that problem. Those who want out can sell. Those who want exposure can buy. Liquidity replaces pressure on the treasury, and the market takes over price discovery.
Valeo acknowledges that this introduces speculators, but sees it as a necessary trade-off. PHNM isn’t being marketed to the general public, and the treasury itself won’t be selling tokens.
Community Ownership and Governance
One of the most controversial points was the lack of a community vote on the changes. Valeo draws a firm distinction between ownership and decision-making.
While PHNM decentralizes economic upside, Phenom Poker remains operationally centralized. In Valeo’s view, this is essential for a fast-moving, highly competitive business.
A governance portal is still planned, but its scope will be limited. Token holders may vote on treasury allocation, sponsorships, or community-related issues, but not on critical operational decisions that could determine the company’s survival.
Why Redemptions Were Frozen
The announcement coincided with widespread panic on social media and unrelated technical issues on the Polygon network. Although player funds were never at risk, fear spread quickly.
Redemption requests surged, threatening to destabilize the treasury. Phenom responded by temporarily freezing redemptions while continuing to process them in a controlled manner.
Valeo says the real fix isn’t managing redemptions better, but eliminating the dependency on the treasury altogether. The open-market model does exactly that.
How the New Token System Will Work
PHNM will be listed on a decentralized exchange with initial liquidity provided by the Phenom treasury. The starting price will be based on the platform’s internal valuation, after which the market will decide where it trades.
The token still represents a claim on site revenue. What’s changed is control. Phenom no longer sets the valuation.
The platform is also moving to an emissionless model. No new PHNM will be issued as rakeback. Instead, players will receive USDT and can choose to automatically buy or stake PHNM inside the app.
Stakers will earn USDC rewards sourced directly from site revenue. In-app swapping will allow users to trade without needing to understand external DEXs.
Out of 50 million total tokens, 16.3 million remain in the treasury and will be used strategically for partnerships, ambassadors, promotions, and ecosystem growth.
On Price Volatility
Valeo isn’t concerned about short-term price swings. He argues that extreme downside would quickly attract serious buyers.
At a price of $0.20, roughly 20 percent of the company could be acquired for $2 million, despite Phenom generating $7 million in revenue in its first year. In his view, that kind of valuation wouldn’t last long.
Valeo’s own tokens are locked, and he frames his incentives clearly: grow the platform, grow revenue, and let the token follow.
Why Build Phenom This Way
Phenom could have taken a far easier path: high rake, minimal transparency, and no shared ownership. Valeo says that was never the goal.
The project grew out of a simple question: what would a poker site look like if it were actually built for players?
By sharing value, offering real ownership, and aligning incentives, Phenom is trying to build something fundamentally different. With the redemption bottleneck removed, the company believes it can now invest more aggressively in growth.
According to Valeo, this is still early days. The team, the ambassadors, and the community are in place. Now the focus is on execution.
