Hey! PNT staker and DeFi ninja here. I just wanted to say thanks for the awesome rundown on what’s in store and the outcomes each option might bring.
This proposal is super detailed, but to keep it short and sweet, here’s what it covers:
- Brand new project and bridge.
- Figuring out the funding and budget stuff.
- Dealing with inflation and protecting the active DAO members from dilution (keeping the slackers in check).
- Options for managing inflation.
Now, onto my thoughts:
- You mentioned pNetwork v3, DAO v2, a fresh dApp, and giving the brand a facelift. It sounds like you’re gearing up to launch a whole new bridge project, especially with the bull market in mind.
I totally get that making wrapped assets more decentralized makes them more appealing for the DeFi crowd. But let’s not forget, there have been some massive bridge hacks worth a whopping $2.6 billion! That’s a big turn-off for people and protocols. Do you reckon this improved decentralization will help regain trust and make bridges more attractive?
- You talk about this lean budget, like $75k per month plus 15k PNT per week for LP incentives – pretty darn efficient if you ask me!
But here’s the kicker: this budget setup seems to work well when we’re in the bear market, but what happens when the bulls start charging? And hey, where’s the cash for those audits? I mean, your 100k estimate sounds kinda on the low side.
Now, onto the crystal ball stuff: How do you see the treasury expenses shaping up down the road?
And that $1.3 million budget for 2024 – that’s a hefty sum. Considering what happened in the past when the market took a nosedive, how can we be sure this new budget plan will keep the funding train on the tracks? Are you thinking about stashing some stablecoins for a rainy day? Maybe hunting down some extra cash from other sources, like grants from L2s like Optimism or Base?
- In a nutshell, we’ve got 96.8 million PNT tokens in circulation, with 10 million PNT locked up in the DAO. To keep the project humming for a year, we’re talking about needing $1.3 million, which translates to 15 million PNT (assuming PNT’s riding at $0.09), resulting in a 15% inflation.
Now, instead of finding ourselves in the same pickle twelve months down the line, you’re pitching a master plan here. It’s a multi-year inflation strategy with these periodic check-ins with the DAO. This whole setup includes a combo deal of basic DAO inflation plus an extra layer for DAO incentives. All of this should keep the project funded and cozy for a solid three years.
What’s sweet about it is that while the project’s pockets stay lined, the PNT champs who’ve thrown their weight behind it won’t get watered down. That’s thanks to a tempting 27% APY (that’s fixed for three years!) for the active DAO gang, and to top it off, those rewards keep piling up with automatic compounding!
Plus, with that fixed APY capped at 20 million PNT, there’s a real incentive for folks to hop on board early and grab a slice of the action. Get in while the getting’s good!
- When it comes to those inflation scenarios, here’s the deal:
Option A seems like the safe bet because it maps out a clear funding plan for a solid three years. But, it does lock in a huge commitment and long-term inflation strategy at a time when the DAO action is pretty slow.
Now, Option C, well, it’s a bit of a wild card. It puts every new idea up for a DAO vote, which can be dicey. But the cool part is, it only commits to a general inflation plan now and leaves the specifics for later when (hopefully) more folks are in the PNT and DAO mix.
With Option C, though, you’ve got to be super vigilant about spending. Since the DAO only approves one thing at a time, there’s a risk that the budget could end up all over the place, especially in the bull market.
One big perk of Option C is that it’s not really tossing out 20% more tokens right away. It’s more like, “Let’s see how the market plays out.” On the flip side, Options A and B are all about pumping out that extra 20% no matter what’s cooking in the crypto world.
So, talking about Option C, here’s a burning question I’ve got: What’s the deal with that fixed APY for the DAO crew? It seems like it might not be all that fixed if the budget for it isn’t given the green light down the road, right?