PIP-9: Staking rewards extension and contract upgrade

Dear community,

In the past year, many of our PathDAO community members were enjoying the upgraded staking pools. For the first year of staking, we’ve dedicated 100,000,000 $PATH. The rewards of these pools across Ethereum and Polygon are ending on Jan 11 2023 per PIP-4 (PIP-4: Staking contract upgrade).

There are ~50,000,000 $PATH remaining in the allocation for long-term holding compensation / staking. (https://pathdao.gitbook.io/pathdao/value-accrual-to-usdpath/token-distribution).

Option A: Let staking end and not renew the rewards.

The tokens would be placed in the treasury would be remain unspent or “locked” out of circulation. Until there is significant use for them to drive up exponential value for $PATH holders. (E.g in our Play platform growth, if a dollar of $PATH used brings back 5 dollars worth of sustained purchase, that’s when we can justify using this treasury stack.)

Justifications:

  1. Providing staking rewards in this market would not generate any new form of demand for $PATH, but just create more supply of tokens into circulation.
  2. Provides more gunpowder to bootstrap user growth on the products we are creating.

Option B: Extend rewards through an upgrade to the staking module.

A new single-sided staking contract will be launched with increased flexibility and longevity. Locking of principal will be from 1 week to 260 weeks, where longer locks will get exponential benefits and higher staking weightage multiplier:

0 weeks / flexible = 0%
52 weeks = 65%
104 weeks = 150%
156 weeks = 300%
208 weeks = 500%
260 weeks = 700%

Reward subsidy proposed for year 2 will be 5% of total token supply (50,000,000 $PATH) based on the current APRs. Future rewards post year 2 will be adjusted on a yearly basis depending on DAO revenues and non-$PATH staking rewards that might roll out in the coming years.

Vesting of rewards will still follow the current mechanism:1 year vesting upon claiming of rewards.

Amendment 1: New pool will be created in Polygon only (not Ethereum) to reduce gas fees.

Voting options:
• Option A: Let staking end and not renew the rewards
or
• Option B: Extend rewards through an upgrade to the staking module

Budget:
No additional budget required.

Process:
PIP-9 will proceed in the following manner:

  1. This proposal will be open for discussion until 16 Jan 2023, 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

Thanks in advance for weighing in.

2 Likes

I think staking is needed to keep sell pressure of path why not keep the apy lower than this year but keep the model the same 0-12 month lock . And after 12 months put it back to vote ?

I have quite a few points to make about the subject. Community is pretty much gone, VCs are one of the sketchiest in the business and advisors not only are worthless, but are actually bad actors. Instead of Ethermage fix something like the tokenomics, which is doable, he activetly made it worst by choice, changing the most important aspect of PIP-6b in the last minute by himself (without any discussion) and now actively working towards ending staking. Pathdao is a project that tanked way before everyone else and way harder than everyone else.

He is the CEO, he should be the one to foster the community, this proposal not only shows that in this one year he learned absolutely nothing and probably thinks that pathdao value failure is just the bad timing of the market. It’s not. I have being warned by several people about the bad tokenomics and leadership lack of skill, but I still had some hope. I was wrong.

  • Team, VCs, Angels, they all going to dillute the circulating supply in this one year by pretty much double, right now if you have 1% of pathdao participation on the DAO, by the end of 2023 this will be 0,5%. Anyone that is holding the token is actively transferring their voting and treasury rights to the likes of deFiance Capital and Kieran Warwick.

  • Obviously team is going to vote for option A, and since right now there is pretty much no community left option A is what is going to be chosen by “everyone”, but what is actually happening is that they are going to get a shit load of tokens in 2023 and have zero need to think about anyone here. Its a rigged vote, even after losing 30% of the Treasury and 98% of the token value they are continuing to screw everyone.

  • Saying buzzwords like “Oh this 1 dollar is going to generate 5!!!” is just outright a lie, what the heck does this have to do with community incentives? First of all you guys are saying this for months, and I don’t doubt it, but not only this did not happen as we can’t know right now if it will. This is a tokenomics issue and not anything else.

Right now the fact that he is sponsoring the option A just shows how little they care about the few people that are left to stay. From the early days of pathdao this was ALWAYS a Project for VCs to make money on the back of the community and this didn’t change for a single second. This is NOT a community DAO and never will be. Regardless of the vote I will be liquidating all the stake that I can and will even right up a proposal to liquidate Treasury (which will obviously be worthless but just to make a point).

Good luck to y’all, maybe in the next bull run people will read up on this to understand better what the team chose to do with their community.

1 Like

Hi Rodrigo

Thanks for the feedback. As the core team, our job is to listen to both parties and weigh what’s best for the DAO long-term. On one hand, we think PATH tokens should be better utilised to bootstrap users, and on the other, I also understand the need to compensate the users who hold $PATH long-term via staking rewards. The team will actually abstain from voting in this PIP and let the community decides what’s best.

While we could have done better when it comes to tokenomics design back when we started Path, amid the price action in bear market, the team is still actively crafting a path towards long-term success. Please find below some details on 2022 work, and our plan for 2023, especially in bringing more utility to $PATH.

Once again, always cherish your feedback and thank you

3 Likes

Kinda agree here for I saw a few other projects lower token emissions but kept staking on.
An equivalent gaming DAO like Merit Circle did lower their staking rewards as well for this year. They also upgraded the contract to allow for longer lockups.

Also, we still have a significant portion of tokens in community portion that can be used for growth plans. With the consistent buybacks happening, treasury will still have tokens for growth which is quite important as well. More users on Path’s platforms would equal more hodlers.

3 Likes

Option B proposal is to reward longer and more committed community members. Current model only rewards a maximum of 1 year, but we are in for the long run and there are members who are in the same boat. This option allows these folks to be rewarded more.

Love your passion ser. Again, team is abstaining on this vote, we are pretty much neutral when writing up this PIP.

The project has outperform the markets, and realised significant profits even versus our peers. (Take for example the December performance reports across the space we are in). The connection of that with the token price will come, but if you are not willing to wait, we are happy to arrange an OTC deal between you and other buyers. DM me on that bit.

The options are needed as there’s polarising views on this. I’m trying to get the folks who are discussing this on separate venues to bring the discussion over here. Also, let’s keep the discussion on the staking topic, other discussions will be taken down to avoid distractions.

Agree I bought on Ejs and copper launch. I would happily lock for a longer period but path is still a young company should this not be reviewed yearly ? To put something in place for the next 5 years is to far away ? We should on a monthly basis 20% of profits made burn tokens? On yearly review

  1. What can be done as well is for the smart contract to have a function that unlocks all locked tokens.

This can only be used in the event of a passed PIP.
E.g. if many folks lock for 5 years, but there is a major utility for token on some of our platforms etc, a PIP can be passed to release the locked tokens.

  1. On the removing supply side, we already are using 15% of realised profits to buyback and remove tokens from circulation. ( PathDAO PIP-6B_Realized Gain Buyback Transaction - Google Sheets ). These are sitting in a separate wallet (0xbeDAF4736c7BC4eC837b270956794804b51a8f15). If the DAO decides to burn these it can be done; for now it’s being ringfenced.

Hi ethermage
If option b is voted for I personally would stake for the 5 year period. But I have dca and have staked at various times in the year as late as November. Will it be possible to stake straight away ? And the vesting period?
Thanks mar

1 Like

Hi PathDAO,

Thanks for setting up this PIP.

It personally depends on the objectives you all want to achieve. If 5 years is needed to carry out your vision, and that the tokens will have high demands by then for the whole PathDAO ecosystem, then it’s worth doing so.

Taking a long term investor’s perspective, I do not mind having it locked for 5 years. But what will be the concern of most investors are

  1. Will PathDAO team continue to persevere in this uncertain crypto market and remain steadfast and hold on to this project? I hope you all say YES.
  2. If it’s YES for point 1, then long term investors will feel safe to keep the token long term.
  3. What we do not wish to see is a misplaced trust, where investors trusted you all and somehow ended up no progress. But I am talking too much at this moment, So far, I have seen the team delivers and working hard, so I have no qualms. I only wish to know the commitment in the next 5 years to drive the demand of PathDAO token.

I will vote for Option B.

Thanks.

2 Likes

There might be some creative ways to allow for the current locked pool stakers to participate. Having an internal discussion tomorrow on the feasibility of some of these methods. Will update asap.

1 Like

Few options we are exploring, since sPath isn’t transferable.

  1. Use ERC721 to snapshot the amount of $PATH locked in the old staking contracts with the expiry date. This is then used to stake into the new pools.

  2. drop ssPATH tokens to sPATH holders. ssPATH can be staked in the new contracts. But this create potential duplication issues.

Let us know if you folks have some creative recommendations to allow locked pool stakers to participate in the new pools.

Hi Ether,

What we can do is create a site for people to convert their tokens and providing them the option to restake it. Give them a time limit to do so, those who converted enjoy staking rightaway.

Can we also have a function where the token can be specifically directed to another wallet address? I have changed my wallet address for all pathdao holdings but the current one seems to be stucked in my existing burner wallet.

Thanks.

CITF

What’s the less time consuming.a snapshot has to be done manually?and then working the apy out for whichever pool you choose.how many people are staking?

Directed as in, if you stake the principal from Wallet A,
We allow you to withdraw the principal and rewards to Wallet B?

Yes.

like some platform which do bridging, then allows the bridged token to be sent to another wallet. similar function.

Stop messing with smart contracts, you guys are not experts on it, its one of the top things that fucks up loads of projects. In the span one year you guys already changed it twice.

My vote would be to put what is left of the incentives in the spam of 52w and we can figure it out the rest of it next year. We have loads of options, we have buybacks, we have a stupid amount of community incentives, etc etc.

Dont complicate it, focus on what you guys are good at. This is not it, stop messing around.

https://snapshot.org/#/pathvote.eth/proposal/0x7ab93e5641e12b65f5d1c2ad74b6c64a49cf77c7363f56c0bb7854cb99fd882b

Proposal up for voting. Let’s get a direction here first before we dive into the deets.
But meanwhile our contract devs are already exploring the feasibility to speed things along.

Hi ethermage on pip 6b we currently have a fund available for buy backs. How much is the fund. and when are they bought the mention of 10% below market value . Is that not now? Thanks mar