PGP-12: Allocating 250k PAL to win a Tokemak reactor

Summary:
Allocate 250,000 PAL for Core Team to try to win a Tokemak Reactor during Core 3

Context:
Previous discussions: Tokemak Core 3 Strategy

We’re currently sitting at the 17th spot of the race with 135,000 votes with a threshold of 1,500,000 votes to win a reactor.

Seeing that we are currently in talks with Alchemix to borrow their 1,200,000 votes and have officially passed the vote for APWine’s 240,000 votes, we are theoretically in, for ~200,000 PAL in OTC deals.

Rationale:
Winning a reactor brings quite a lot of value for Paladin:

  • It’s a good communications campaign
  • It enables us to diversify treasury opportunities
  • Will raise our liquidity options

At the beginning of Paladin, we airdrop 2% of the supply to governors in Aave, Uniswap, Compound and Curve (the equivalent of 250,000 PAL per system we could say), giving away 250,000 PAL to enter the Tokemak ecosystem should be considered a fair opportunity.

Means:
250,000 PAL.

Sustainability:
Our main concern as a DAO should be to avoid sunk cost. Worse case scenario, we pay the 250,000 PAL, all of them are dumped and we lose the reactor race.

To avoid so, we have taken a few security measures:

  • We will only do OTC deals to minimize dumping;
  • We have added a provision letting us resell the vote if we feel losing the contest is becoming obvious and minimize / neutralize our losses;
  • All deals are to be activated in the last few hours of the race;

We need to be ready for the last day, Monday, so the vote will be launched in a few hours and last 48 hours, exceptionally, while we discuss of it here.

Voting options:
Yes / No / Abstain

PS: We are in the middle of a governance transition and so will probably count bot PAL and hPAL for the coming few votes

*PPS: I know I am biased on this vote so I will abstain to let the DAO have more leeway on the decisionmaking process

  • Yes
  • No

0 voters

4 Likes

A few questions… as usual!

  • Overall i am in favor of the 2 deals. Are APWine and Alchemix getting the same conditions for the deal? (price based on 14 days TWAP)
  • Are these the only 2 protcols that we could make a deal with, or do we have any other leads?
  • Do we have any visibility in what other CoRE participants are doing? With those 2 deals, we would barely take the 5th spot, but that’s assuming others aren’t making deals to secure votes as well.
  • If we wait until the last minute to activate the deals, that leaves us little to no time to try and resell the votes. Is that not a huge risk?
  • Could we not do an OTC deal to give Alchemix/Apwine Locked hPal? I’m surprised we would not ask for guarantees and them dumping the token would be a possibilty.
1 Like

Yes, all DAOs will be getting the same deals.

I’ve been doing a bit of intelligence, here’s what I found: BitDAO is probably going to pass with their current amount, Silo doesn’t care (won’t bribe), Rune doesn’t care, Maker doesn’t care, Curve, Convex, Reflexer and Balancer don’t either.

We have a few more allies who will show up later on, but I agree that activating the deal last minute is a risk without any provisions. All swaps will of course be conduncted in hPAL (not locked), but we’ve selected DAOs who are incentivised to lock.

4 Likes

APWine was quoting a price of approx 0.12$ per vote, so securing the 1,440,000 votes would only require about 173k$. Are we valuing PAL under 1$ or are we approving a bit more (250k PALs) as a buffer?

I might be too suspicious :slight_smile: , but why not give out locked hPAL (for 1 or 2 years) if the DAOs are interested in partnering up? Or maybe give they the choice with an additional premium if they pick the locked hPAL over the unlocked ones.

Locked hPAL are not transferable

2 Likes

Yes of course, but there are probably creative ways to make it work… for example deliver the initial amount of tokens that was discussed, and if they lock them for 12-24 months as agreed, then deliver the rest after the vote?

Ser please add polls on your proposals :sweat_smile::pray:t3:

I’m in favor of allocating 250k for a reactor, hopefully we’ll manage to get it :fire:

1 Like

I think that is overkill

You are in direct contact with those teams so you are in a better position to judge what is reasonable vs. overkill. :+1:t2:
Anyways, the APRs are so good already (even without all the other stuff in the pipeline) that they would be crazy not to lock. :smirk:

1 Like

No reservations at all. I’m for it.

Vote is now live folks. Let’s get it!
https://snapshot.org/#/palvote.eth/proposal/0x24bed631749ed7c7273197212ea130a5898d9df053358ab08a118bc6feafa87e

1 Like

Looks like we are a go for the 250k Pal, but the gap is widening on the CoRE: we now need almost 2M votes. Is there anything new you can share, or do we just need to wait until the vote ends tomorrow evening to seehow everything unfolds?

1 Like

If we want to win we need:

  • have a huge bag of TOKE
    And/or
  • send some BIG bribes …

It is sad

Spending 250k PAL for 1.2 million votes will not be enough :confused:

Hello everyone, as mentioned above, market conditions and Core 3 development (alliances, minimum required votes, community support…) are indicating a complicated path to victory.

In the current times we believe it is better to concentrate resources on survival / creating revenue than expanding more than where we currently are. I personally am extremely expectant of Tokemak, and the value we can create together, but I want to avoid my own bias on this project impacting Paladin’s success. Maybe this was too soon for us.

We will be back for a reactor, stronger.

5 Likes

A little bit disappointing, but we can’t win every battle… what does the path forward look like then?
Does it still make sense to have that short term loan with angle/ondo if we don’t get the reactor?
Did we not also have plans for cross chain development that might need to be reconsidered as a result?
I understand it might be a little bit early to think about all this and the team probably needs a couple days to gather their thoughts and derive a new plan.