Pangolin Foundation Update

Please note This is still at the proposal stage.

Overview

As part of the new Tokenomics proposal V2 we will be allocating 30 million to a Pangolin Foundation. This will be diverted into the existing community treasury. Currently the community treasury holds approximately 14 million PNG. This will be topped up by approximately 16 million PNG.

There’s some important points to consider here:

  • This PNG is only accessible via an on chain vote. This is exactly the same as it is today
  • There is no legal entity behind this wallet address. It is purely an Avalanche address. It is completely controlled by PNG voting

We are currently obtaining advice about the following:

  • What is the best country to host a legal entity for the DAO. This is being engaged by Deloitte. One of key points here is that we may have to pay tax on those funds. Deloitte is providing services which will make a recommendation. As soon as we receive that advice we will share it with the community
  • What are the legal implications of issuing share certificates in that legal entity equivalent to people’s PNG holdings? Does this make PNG a security. We can only get this legal advice after we have received feedback from Deloitte.

So in summary, the foundation’s funds will continue to operate the same way that the current treasury operates. Via on chain governance. Any legal entities or further developments will be advised upon by professional firms and once that advice has been obtained, it will be shared with the community.

We can now focus on the proposed distribution of the Foundation’s funds

Contributors

The 6 million will be separated into different tranches

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This distribution will be weighted by length of service. If for example, Johnny Clegg joins the DAO as the 6th member, he will receive PNG as per the below:

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There’s some important points to consider:

  • Only full time contributors are eligible
  • Any PNG that is “sacrificed” by a member leaving early is distributed back to a pool, that will then be allocated based on performance.
  • If PNG cannot be sold by contributors, then they will get preferred Creditor status to the proceeds from the Treasury/Off chain resources
  • Core team’s allocation will be backdated to their start date, same thing applies for the next 6 core members that join
  • The members can sell all their tokens after their vesting schedule is reached.
  • To prevent dumping any sales above 50,000 PNG by a member needs to be disclosed. No-one will allowed to sell more than 0.5% of the circulating supply within a month timeframe
  • There will be terms surrounding how core contributors can leave the project as well as the public disclosure of that information
  • A member may be kicked out for misconduct. We will be compiling a misconduct policy.
  • The core team (Leo, Justin, Brandon) will be automatically eligible for this scheme, however all new contributors will need to perform a 3 month probation period. After this period elapses, a vote will occur between all existing core members for whether that member is eligible.
  • This incentive scheme will be part of an employment agreement with each core member. Currently the thoughts are this will be handled by Deel.
  • Caps on sales could perhaps reference 7 day average trading volume on Pangolin, as well as the monthly cap? Perhaps a daily sale cap for each person of 0.5% of average daily volume, with that percentage increasing by 25 basis points each year? Even better would be for all staff to off-ramp via a smart contract to handle sales as you can then set an aggregate cap for the entire team – that would represent good custodianship of the PNG market.

Contracts

The PNG vesting for employees, will be deployed via a Sablier type contract into PNG Staking

Advisors

1 million PNG will be set aside to Advisors. The current thoughts around advisors are:

  • Dhruba
  • Connor
  • Nicholas
  • Tyler
  • Omer

They will have a similar vesting schedule to core contributors

Investment

We will transfer 2 million to Muhabbit Capital https://muhabbit.capital/ in order to invest a portion of the Foundations capital. Muhabbit will engage in a programme of wealth diversifcation and we may periodically top up this amount based on performance.

Treasury

The treasury will be used to run the day to day operations of the DAO. We will issue a Budget every 6 months which if passed by the community will be transferred into the current multisig. Currently are expected yearly Burn rate is 3 million USD as you can see from the below provisional budget