Pangolin Tokenomics Improvement Proposal

So right now there are already 538M PNG minted and 474M is waiting in a TreasuryVester contract to distributed each day as liquidity mining rewards.

Here is the contract
https://cchain.explorer.avax.network/address/0x6747AC215dAFfeE03a42F49FebB6ab448E12acEe/read-contract

Since the tokens have already been minted, in order to reduce the max supply from 538M to 330M, we will be routing the excess PNG after 4 years to a burn address, therefore “burning” the excess and reducing the max supply.

4 Likes
  • reduce the max supply from 538M to 230M
1 Like

I forget to say that I fully support the proposal. Just want to add that maybe it would be more stable growth if we can change the half of the PNG to AVAX. If not then we have to make Pangolin a new Binance of DEXes in order to be competent with other conservative communities and DEXes. MHO.

PS. I am never sure of my ideas. I just say what I feel. :raised_hands: :star_struck:

How is the community considering the following:

  • What does competitive mean? Equivalent to expected market returns for LPs, 10% higher,…?
  • Competitive for all market pairs? Is there specific market share or verticals the community wants to target?
  • How will the elasticity of LPs change as Avalanche evolves (read:stabilizes)?
  • What is the objective function? Trading volume? LP returns? Liquidity by pair?
  • How does LP user experience play into consideration?
  • Would there be a floor, ceiling, emissions step size, and max WoW target change per pair?
3 Likes

I fully support improving PNG’s tokenomics by reducing the inflation. I can’t even wait to see the on-chain proposal. Let’s do it as quick as possible.

4 Likes

Great questions:

So in some calculations we’ve done internally, Trader Joe is emitting over 2 million USD worth of JOE tokens daily. While personally I believe that’s unsustainable, it does mean they can attract a lot of the mercenary capital. Pangolin as a point of comparison emits close to half a million USD a day. While this is a lot more sustainable, it does represent a risk of losing TVL.

So when we talk about being competitive, it’s about offering good APR’s to our Liquidity Providers in a sustainable and attractive way.

We obviously can’t and won’t be competitive for all market pairs. I’d prefer us to focus on blue chips and our universal guidelines already implicitly shows this strategy by requiring a token to be well established to qualify for PNG rewards.

In terms of our objective, I can only comment on myself and for me, it’s about Pangolin being a cornerstone of DeFi on Avalanche in the medium (2 - 4 years) and long term (4 years plus). To do that we have to be self sufficient. We’re a community project, so we need to be able to cover our operating expenditure and then earn a lot of revenue which we can divert back to our token holders. To do this we need to maximise revenue, while also diversifying revenue streams. So swap fee’s are a huge revenue source. We will also get a revenue source from our working capital used for our CEX listings. This is a very healthy start. However we still have a lot of work to do to improve this.

LP User experience is critical. We currently have a new UI being worked on and is one of the key focuses. Here’s a very early draft

In terms of emissions, we’re still going through the technical possibilities/limitations. So as soon as we know more we’ll share that more broadly with the community

6 Likes

What are the current revenue sources of APR for PNG/AVAX staking ? Can anyone give me some idea please ? :pray:

If you are on about the PNG staking with AVAX rewards, these are from the Avalanche Rush program. These will be the staking rewards for 3 months, and after that we will move on to PNG rewards.

1 Like

Thanks for reply Scrallex. I hope Pangolin team can extend this staking pair for 4 year. It would be very attractive. :raised_hands: :star_struck:

2 Likes

Yes, i agree. It looks good with AVAX rewards, but with PNG rewards you are only a swap away from AVAX. But Staking is def here to stay and that is the most important :ok_hand:t3:

3 Likes

Wen Tokenomics Improvement? :grinning:

1 Like

We’re writing the code at the moment and after it gets audited will submit it for proposal. We’re hoping mid October

8 Likes

Great to see this moving forward so quickly. You guys move at such a fast pace that it’s hard to keep up with everything.

2 Likes

Oh no guys, please don’t spend time on writing a proxy custom contract while there are still other user-facing features to build…

Better tokenomics IMO is the biggest win for us right now. Strong tokenomics drive users, investors, APRs, TVL, etc.

3 Likes

AVAX is very agressive against PNG. This must be solved. It is not a healthy relationship.

3 Likes

Exactly. Me as PNG/AVAX LP, I feel very bad with almost 50% IL. I love Pangolin, but hate $PNG right now. I`m staking this pair for about 4 months, wanted to support one of my fav project, using it exclusively as dex on avax. BUT I will continue to stacking this PNGs, hopefully one day I will be able to say it was worth it :slight_smile: I believe in Pangolin team

4 Likes

I experience and feel the same. Currently staking in Pangolin app looks like a “scam”. You stake and loose. It shouldn`t be like that. If you want to support the platform you should be rewarded not punished. I hope we will find the solution. I also will continue to staking. But as I said, the current prices are supporting trading not hodling. If there is no hodling then there will not be dexes. MHO.

2 Likes

Have you looked at single sided staking for PNG? There’s no IL there and you get rewarded in WAVAX

1 Like

Personally, I was compounding rewards back into PNG/AVAX pool, so I cant participate because my sources are in that pool mostly. And i dont want to withdraw. You should use some funds from Avalanche Rush to reward PNG/AVAX pair, maybe also other PNG pairs. That would make sense imo