Compounding Locked PNDA and Bao

I think it would be a great idea to implement some sort of compounding mechanism that will automatically compound the locked PNDA and BAO rewards. The locked rewards will stay locked even during compounding. Maybe a 1:1 mint to another token that can’t be withdrawn or sold but only used to restake on the platform. This should be done with single sided staking to avoid impermenant lose. Might be a good idea to make this fully automated to efficiency and cost savings. The rewards farmed from this should be subject to a locked up at the same rate or perhaps a portion should go towards a burn lottery to further decrease inflation. Please share your thoughts.


I think it is a good idea. I am wondering if the Robo features in the last Medium post could lead to that…


Hmm, one thing about this proposal is I’m not sure if it would result in any real difference in terms of value. Because your locked Bao is unusable for any other function other than this, it would mean that every single person would compound their holdings. In the end I think it’d just raise the floor? You’ll have a larger amount, but so would everyone else. Especially if this is an automated feature, which I don’t see why it wouldn’t be given there’s no tradeoff for not compounding since your locked rewards can’t do anything.


I agree with Madotuski, mostly.

I believe the urge to make use of locked Bao prior to the unlock date is a symptom of impatience, a desire to make some kind of use of the locked rewards sooner than the designated hold period.

On a philosophical level, I think that the lockup period is designed to encourage participation of folks who will accept long term deferred access, since that mentality in the community contributes to the long-term project stability that BaoMan set as a core Bao value. And I believe Mad is correct, allowing auto compounding of locked PNDA/Bao is something everyone would do (as proposed) so there is no net change in current status quo.

But it does sort of raise an interesting issue/question I hadn’t thought of before. The idea of allowing special use (like compounding) of locked assets does emphasise a core distinciton between two groups of Bao/PNDA users: those who farm (and thus who earn locked assets) and those who don’t (ie. hodlers). And farming is an valued Bao behavior that I believe the team wants to encourage.

So while I agree with Mad with regards to the proposal (i.e. completely unrestricted auto compounding of locked assets), there may be some added incentive if compounding or even some other clever use of locked assets IS allowed if certain restrictions or conditions are satisfied. I have no idea what those conditions would/could be, but in my view they should be something that incentivise the vision that BaoMan set forth, such as further contributing to long term holding and value to the protocol. And this might be something where the “merit badge” NFTs that BaoMan teased could come in to play, i.e. if you qualify/satisfy the conditions you earn a Badge, and if you have the requisite Badges or combination of Badges then yes indeed you can compound your locked assets (or a portion of your locked assets). This would create the necessary restrictions in availablility that would differentiate the compounding and so there would be some meaning to it and possibly allow further incentivisation of desired behaviors in the community. The “con” or disadvantage side of this is that it means you have to be diamond crystal clear on your values and the behaviours or results you want to incentivize and very meticulous in your rollout because this approach essentially makes use of locked bao as fuel to incentivize non-farming related behavious (potentially) and users may disagree on this. But that is what voting is for…

These are my thoughts, though I have no idea what “behaviors” we would want to to incentivize such that we would allow tinkering with the lockup. My personal core view is that folks should just be patient, wait out the unlock and the unlock schedule.