Hi everyone, I’d like to share the draft DAO proposal that was first shared during the last Community Call by the pNetwork Community Association.
This is the draft, and it may be amended when proposed to the pNetwork DAO.
I am looking forward to getting feedback from the community before it is opened for voting in the DAO.
Should the DAO Loan 1.6M PNT to the pNetwork Community Association to Operate Four pNetwork Nodes?
Summary
This proposal suggests that the pNetwork DAO loans 1.6 million PNT tokens to the pNetwork Community Association to facilitate the operation of four nodes. This initiative aims to cover operational costs without impacting the PNT token’s market price by avoiding additional token circulation. The loaned tokens will be returned to the DAO, maintaining token ownership within the DAO.
Motivation
The pNetwork Community Association, integral to the project’s development, faces financial constraints due to its short-term funding model and the current low market value of PNT tokens. Traditional methods like minting and selling PNT could negatively impact the market. As an alternative, leveraging PNT from the DAO to stake in nodes allows the Association to earn a share of protocol revenues, thus funding its operations and fostering the ecosystem’s growth without devaluing the PNT token.
Specification
The proposal outlines a loan of 1.6 million PNT from the DAO, which the pNetwork Community Association will use to operate four nodes, with each node requiring a stake of 400,000 PNT. This arrangement will enable the Association to generate revenue from the protocol without the need to sell or mint new PNT tokens. The PNT used for this loan will remain within the DAO’s treasury but will be staked to run the nodes, ensuring no increase in token circulation.
The loan period… *1
This strategy ensures that while the tokens are loaned out, they are effectively in use within the system and not sold, thus maintaining their value and ownership within the DAO.
Pros:
- No PNT tokens enter into circulation.
- No PNT tokens are sold in the market.
- The DAO maintains ownership of the tokens and will get back the PNT used in the loan.
- Enhances the sustainability of the project and its future development.
- Direct income from the protocol revenues encourages increasing cross-chain activity, benefiting all node operators.
The current node operators’ revenue share will decrease temporarily due to the increased number of nodes participating in revenue distribution, however, the proposal prioritizes the long-term stability and growth of the pNetwork, proposing a sustainable financial model that benefits the broader ecosystem.
If the proposal
The proposal will soon be posted on the pNetwork DAO for voting.
Question(s) for the community:
'*1
The loan period can be fixed and decided by the community or left open-ended, with provisions for early termination through a DAO vote.
Questions and suggestions are welcomed 