PIP-33: Simplify the token migration

1

Summary: Reduce migration vesting to 3 months and maintain the 50M supply

Context:
PIP-28 set the terms for the migration to happen from PAL to Trevee. It enshrined 3 things:

  • Creation of a new token;
  • The migration process (slashing or vesting);
  • A supply shrink as well as the activation of yearly optional inflation;

Rationale:

  1. The migration process proved to be too extreme, with multiple stakeholders selling the token in order to get more liquid exposure after the migration happened. While this was expected, it is true one year is too much of an illiquid time frame and we believe 3 months is a more reasonable option;
  2. The supply change is creating more questions and misunderstandings than it should’ve, and we feel keeping the 50,000,000 supply will make it easier to understand that there is no value leakage;

Means:

  • None

Voting options:
For / Against / Abstain

  • For
  • Against
  • Abstain
0 voters
3

I don’t yet entirely understand the reason for locking tokens after migration. The largest share of liquidity is POL, which will be migrated anyways. Are these three months simply to give time for other LPs to withdraw from their pools? If so, I believe even one month is enough, three months of being illiquid is still an awfully long time.

4

There are multiple reasons:

  • Some CEX listing require to be the first with liquidity access
  • We want a clean new chart for the migration
  • Most bullish updates will happen over three months and we need time to push them
  • Such system enables people to either wait migration to buy or take the illiquidity risk

PoL and the DAO in general are a bit different because they will not migrate, but burn and mint. The liquidity will be available day one

1 Like
5

Thanks for this proposal.

We should really use this opportunity to remove the slashing / vesting part which is unnecessarily penalizing long term holders, create more complexity to prepare the migration, and will impact arbitrage opportunities & volume associated.

Voting against now but will support if slashing / vesting is removed (which can be added as an alternative option)

Also, when you say supply won’t change, is it initial supply but keeping inflation plans, or removing inflation entirely ?

6

Litterally nothing to vote for if we remove the slashing / vesting. As you mentioned, there is no reason to give out this arbitrage for free if it can be entirely blocked.

And no, the idea is to keep the annual optional inflation.

7

We’d have to vote to remove the slashing / vesting, so yes the proposal options would be:

  • Reduce slashing / vesting from 12 to 3 months
  • Remove slashing / vesting
  • Keep slashing / vesting of 12 months
  • Abstain

Ok so it’s just initial supply, got it.

8

Outside of core team, does anyone have an incentive in not voting for no slash and no vest ? This seems like a terrible idea

9

Every long term holder that doesn’t wanna get stuck for no reason will be against this slashing/vesting.

Also, the terrible idea was to migrate the token in the first place, as it’s really not necessary.

10

The vote for the migration passed, we shouldn’t come back on passed votes, it is bad governance practice.

We literally built a whole new protocol front the grounds up and gave it to the DAO. It was not funded by the DAO, it was funded by a Sonic grant and company revenue. The price of the this new release is the rebrand and the vesting.

If you can’t accept that the Paladin brand was engraved with governance, which not our main focus anymore, and limited business development, fundraising, listings and growth in general, then there is not much we can say to make you be rational.

If holders aren’t happy about the Trevee direction, they can sell, this is why we have PoL. And if stakeholders want to push for a different direction, please be my guest. But take ownership, maintain the protocol at similar prices to ours, good luck.

My company will focus on releasing new primitives separately from Trevee if we can’t even build for a 3 month horizon.

11

Snapshot link:
https://snapshot.box/#/s:pgm.palvote.eth/proposal/0x71dfd31252df11302c883cc76dea9eb90bd483afe0c33f0de08ab056a552c2fe