TL-DR: Paladin will introduce a 3 tiered PAL structure built around Holy PAL (hPAL) that will enable long term incentive alignment between Paladin stakeholders, protocol growth, PAL utility and wider ecosystem impact in governance.
Previous research discussions :
Outside of the context previously laid out, Paladin’s LBP will start on 21/03/22 and end on the 24/03/22. We believe having clear and operational tokenomics is a strong incentive to align believers and reduce sell pressure. Remember that each day where the token is live without utility is a day where we give weak hands an excuse to give up on Paladin.
We reiterate on our 3 tiered architecture which has received very positive feedback but clearly understood the emission incentives needed a more elegant approach.
Tier 1 - PAL (Speculative layer)
This is the token as is and it will have no voting rights or privileges, it will be used to provide liquidity.
Tier 2 - hPAL (Contributor layer)
This is a staked token confering 1:1 voting power.
Token Holders are free to unstake at any time, however there will be a 10 day cooldown period.All rewards will be distributed in hPAL from now on.
Tier 3 - locked hPAL (Aligned Contributor Layer)
Locking hPAL (3 months to 2 years) will give access to extended voting power (1.5x for locking more than 1 year), The Chest (if lock is over a year), a higher inflation bonus and the fee switch.
We’ve had trouble communicating on how powerful it will become but we remain extremely committed to the previously mentioned. For this reason we decided to remove the Chest from the current proposal, take our time to make its value more obvious, and propose it in another vote further down the road. I will also write an article outlining why it is the most bullish path for Paladin this week.
Most locking mechanisms are incentivized with fees. At Paladin, we don’t believe this is the best way to strive for better governance. We introduced a new mechanism, the Chest, to generate more positive feedback loops between the protocol and the stakeholders.
However, we are aware the Chest will need a few more months in production before being live. For this reason, we want to incentivize locking with a mining campaign, rewarding the stakeholders willing to align with us early on. We’re proposing a 1.5M PAL lock mining campaign over 2 years. They will be distributed between stakers and lockers with a monthly drop rate in the following fashion:
- Stakers (hPAL) will get a base value based on the numbers of hPALs;
- Lockers will have a mining multiplier, from x2 for 3 month lockers to x6 for 2 years lockers.
- 1,500,000 PAL;
- A few more weeks of dev. Time (estimated to 3 weeks);
- Code 4rena campaign (ongoing) and paid by the core team.
- Expect the Chest to go live Q3-2022
- Incentives have been planned for 2 years, by then we expect the protocol revenues to be enough to incentivize locking
- In case a blind spot is revealed, the DAO will have the ability to deactivate the locking system or to implement different tokenomics
Voting options: Yes / No / Abstain
Duration : 72h, starting 6pm CET on Friday 01/04/22 if there aren’t major changes needed.
PLEASE READ THE BELOW POSTS BEFORE VOTING