Dear PNDA community:
One of the items included in BIP-6 which passed last year was Item 4 (“Adjustments to Unlocking”), pursuant to which the “unlock date” for BAO was pushed back until both hard synths and veBAO have been implemented and live for a minimum of 6 months (see [BIP-6] Annual Agenda, Changes and Hard Synth Alpha). There was extensive discussion regarding the reasons for this adjustment, and the BIP was passed by a significant majority of the BAO community.
With the passage of BIP-6, and with development of hard synths and veBAO in progress by the BAO team, it came to my attention that BIP-6 did not address the impending unlocking of the currently “locked” PNDA rewards on BSC, which is currently estimated to begin on February 23, 2022: Binance Block Countdown .
During recent discussions on Discord, some members of the BAO team have confirmed that the Team’s efforts are currently focused on developing products on the mainnet, and that, as a result of this prioritization of resources, (combined with the difficulty of working with BSC’s infrastructure), there are no current plans to work on developing products on BSC/PNDA. However, there is a possibility that if the current situation improves on the mainnet side, it may be possible eventually for the team to shift energy and focus to BSC and to develop and implement BSC versions of the mainnet products that would then support PNDA and its tokenomics.
As a result of all of this, several things seem very clear:
- There is currently no development on BSC/PNDA
- Unlocking of “Locked PNDA” will begin shortly (est. February 23, 2022).
- The unlocking of the bazillion “locked PNDA” prior to the development and implementation of any products on BSC will result in substantial dilution of PNDA.
As a result, I propose that the BAO/PNDA community pass a Panda Improvement Proposal (PIP) which would delay the unlocking of PNDA until hard synths and veBAO have been implemented on mainnet, and the team has had an opportunity to develop and implement similar products on BSC which would include a deflationary/dynamic unlock feature similar to what is being developed and discussed on the mainnet side.
The reasons for passing this PIP for PNDA are the same as the reasons for BIP-6. Furthermore, it has been said that BSC/PNDA was a sandbox for testing BAO products. By protecting against premature unlocking and dilution of PNDA, the BAO/PNDA community will be supporting those folks who supported the BAO community by staking during the BSC/PNDA experience, so that if there is ever a time when products can actually be developed and launched on BSC for PNDA, there is a better chance that the value of PNDA earned by the community in support of BAO will be preserved.
Accordingly, I propose the following as a Concept for discussion, revision and proposal as a PIP and for voting and successful implementation prior to the scheduled unlock date for PNDA/BSC on or about February 23, 2022:
- Push back the current first unlock day for PNDA on PandaSwap/BSC until
a. Hard synths and a PNDA/BSC equivalent to veBAO have been implemented on PandaSwap/BSC and have been live for a minimum of 6 months, and
b. Implementation of a deflationary/dynamic range unlocking mechanism for PNDA/BSC along the lines of what was discussed with regards to BIP-6, i.e. for each PNDA burned, 0.75 will be unlocked (see Chickn’s post on Oct 21, 2021: The Next Path for Bao (Annual Roadmap BIP) - #80 by Chickn)
- This gives the BAO/PNDA community time to:
a. Work on a specific model for vePNDA (or other product equivalent to veBAO)
b. See the results of veBAO and vePNDA and hard synths.
Thank you for your constructive comments and suggestions, and for your assistance in reviewing and (hopefully) implementing this (or something better) as a PIP prior to the actual unlocking of the bazillions of PNDAS in February. I’m sure there are many issues and points that I’ve left out, but in light of the fact that the PNDA Unlocking will start next month, I though it best to get the ball rolling now.