PIP-8: Additional $PATH utility on Polygon

Author:
Core contributor of PathDAO

Summary:
With PIP-5 successful deployment of PATH in the Polygon ecosystem, we have the capability to bring more utility to PATH tokens due to the low gas fee environment.

This proposal aims to bring in several utility elements with $PATH:

  1. Introduce single sided staking of $PATH on Polygon (1Mn $PATH additional emission per month)
  2. Establish a launchpad where $PATH stakers can participate in initial token offerings or initial NFT offerings from our game partners
  3. Explore the feasibility where $PATH stakers can have direct exposure to some of our high yield gaming operations

Abstract:

1. Introduce single sided staking of $PATH on Polygon

Currently $PATH can be staked for $PATH on the Ethereum network. The rewards currently run at 3,000,000 $PATH tokens per month, with a committed runway until Jan 11, 2023.

With the passing of PIP-7, where the DAO now owns all its liquidity and no longer require to “rent” liquidity by paying $PATH tokens to LP providers, there are additional tokens that can be utilised to reward stakers.

We are proposing for $1Mn PATH tokens to be committed monthly on a separate Polygon staking pool until Jan 11 2023. The same conditions of vested rewards and increased reward weightage with lockups will be applied as per PIP-4 (https://gov.pathdao.io/t/pip-4-staking-contract-upgrade).

We are also exploring to proceed with payout of gamers using $PATH tokens. Where their earnings are used to buy $PATH for payouts. With a staking on polygon program in place, it will help increase the hold pressure on the tokens. Gamers that stake $PATH tokens will also experience a myriad of benefits such as boosted EXP rewards on GameStreet etc., access to premium merch.

Here, we are also proposing for the execution team to have the capability to adjust the reward rates on both Ethereum and Polygon to balance the APR %, where the total emissions will remain at 4Mn $PATH per month.

2. Establish a launchpad where $PATH stakers can participate in initial token offerings or initial NFT offerings from our game partners

With the growth of PathDAO’s investments into the web3 gaming ecosystem, more and more of our portfolio companies will go live with token launches and NFT launches. We have first hand access to these exciting NFTs and tokens, and our DAO participants can have direct exposure to them too.

We are proposing to allow the execution team to explore the launch of Path Launchpad. There will be a tiered system where larger $PATH stakers will have higher chances of participating in the INO (NFT) and IGO (token) launches of our game partners. Actual tiering system will be developed by the executing team.

There is a lot of synergy with the work we are already doing. Sourcing of games are already executed and vetted by our investment team. The only added resource we require is the tech development of the platform and the operations of distributing NFTs and tokens.

3. Explore the feasibility where $PATH stakers can have direct exposure to some of our high yield gaming operations

We have a track record of spotting the best gaming opportunities that are already live (e.g. StepN). Today, the DAO deploys capital and manpower to earn in these ecosystems.

We are proposing to allow the execution team to explore the launch of a Yield Pool where $PATH stakers can allocate capital into specific operations pool (e.g., StepN) with a projected ROI (e.g., 30% monthly ROI). The manpower required to execute the operations will be taken from the profits before distribution. Profits are then paid out to the pool providers on a monthly basis. Think of this as farming-as-a-service.

Example:
PathDAO runs a $400k operations breeding StepN shoes, providing a return of $200k a month. We have 3 headcounts running the operation.
PathDAO opens a Yield Pool for StepN called the “Path-StepN Pool”.
$PATH stakers have the option to fund this new pool with USDC. In this scenario, the Path-StepN pool raises $200k.
PathDAO will then scale the operations to $600k worth of assets. In the following month, an incremental profit of $100k was made. 10% is used to cover OPEX, $90k will be distributed back to the $PATH stakers who funded the “Path-StepN Pool”, providing an estimated 50% ROI monthly for that pool.

Voting options:
• In favor (Yes)
or
• Against (No)

Budget:
No additional budget required.

Process:
PIP-8 will proceed in the following manner:

  1. This proposal will be open for discussion until 23 May 2022, 6AM EST
  2. After the discussion concluded and any possible adjustments have been made, the proposal will be up for voting on Snapshot. This link will be provided in due course
  3. The snapshot voting will last for 120 hours after it goes live
  4. After the voting concludes and if the proposal is accepted by the token holders, the proposal will be executed
1 Like

Hey thanks for this. I think this is a solid proposal. Some thoughts:

  1. I would be in complete agreement with this only if $path emissions ARE NOT locked or vested. I think its time to even the playing field with VCs who continue to have their tokens unlocked and are clearly dumping them on retail. Locking tokens to get the highest APR is simply a ‘scammy’ way to get retail to lock their tokens while the unlocks get dumped on their heads. Sorry to put it this bluntly, but this is a tactic that projects use. It should be stake $path to earn $path with completely regular $path emissions.

2/3) These are wonderful ideas, and would bring real utility to the $path token. That being said, I’m quite wary of raising additional funds for projects that are already live, especially in this space where things tend towards 0. I do think number 3 may flop, but I suppose it doesnt hurt to try. Also, adding projected ROI to these pools could be dangerous as there is no way to know that number and if you ‘promise’ an ROI, then you should pay it out.

Thing is we really think the Yield Pools can really add value. I personally just put in some of my own money for our ops team to handle in StepN BNB ops to see if the process is viable. Insane roi now that the team spotted.

And yes, the caveats will have to be super clear. Like the projections, justification and risk compression measures the team takes.

The idea was since we are already doing it for the DAO and personal bags, might as well let our community have direct access.

We are using the same staking pools on sPATH.

Ie people have the ability to stake liquid or lock.
Lock gives a boosted sPATH quantity.

These sPATH are used as measurements in the tiering systems.

Its a good PIP, I support this.

Still, I think that by now team should have realized already that tokenomics needs a change. Anyone staking right now is not only being dilluted but also dumped daily, we never had a single up trend in $path in our entire life, how is that normal?

Allocate more to single staking, even if it means to allocate it from community rewards. Also community rewards having the share it has makes no sense, burn most of it.

We will only have a healthy token when you guys realize that our tokenomics is bad and unless we change it, no amount of utility will help us not to go to 0c.

2 Likes

but staking liquid is still being subjected to vested $path emissions. Im saying to allow those $path tokens to be available immediately upon claiming.

locking up tokens and receiving them a year later isnt great while other $path tokens are being unlocked now.

The unlocks are a problem but going away with the 1 year vesting is not the answer. It could be a lot worse without it.

But yeah, we need a change, right now we are in our own death spiral.

The reason why the PIP behind locked staked rewards passed were to reduce circulating supply. Which helped stemmed emissions.

In our view, its more about creating utility and reasons for buys to happen more often.