As PathDAO transitions to the Virtual Protocol, we propose the migration of the $PATH token to the $VIRTUAL token. This rebranding to $VIRTUAL will enhance public understanding of our offerings and bolster our marketing efforts.
The $VIRTUAL token will not only continue to govern the DAO and treasury, as was the core utility of the $PATH token, but will also introduce new utilities:
Development Incentivization: Rewarding contributors and validators involved in the Virtual Persona stack with $VIRTUAL tokens.
Support and Emission Decision: Enabling token holders to directly impact virtual persona development through staking, which dictates resource allocation and community interest alignment.
Buyback Scheme: Utilizing DApp revenue to repurchase $VIRTUAL tokens, thereby bolstering token value and ecosystem stability.
Airdrop Benefits: Offering airdrops in line with the roadmap for new token offerings, promoting long-term community engagement.
The migration plan includes:
Conversion Ratio: A 1:1 conversion from $PATH to $VIRTUAL, ensuring no supply inflation or dilution. All $PATH tokens, including those staked or locked, across Ethereum and Polygon chains, are eligible for conversion.
Snapshot and Airdrop: A snapshot of all $PATH token holders will be taken on a pre-announced date, followed by an airdrop of $VIRTUAL tokens.
Liquidity Pool Transition: Existing $PATH/ETH liquidity pools will be replaced with $VIRTUAL/ETH pools on the Ethereum chain, with a target of 10% of the total $VIRTUAL supply, paired with DAO-owned ETH at the market price of $PATH upon snapshot.
Budget: The estimated budget for this migration, primarily for airdrop gas fees, is 5-10K USD.
Suspension of Current Staking Program: As we transition to the new Virtual Protocol token, we propose the following actions regarding the existing staking program:
- Pause of the Program: We plan to suspend the current staking program. The specific date for this suspension will be announced in advance and will coincide with the initiation of the migration process.
- Release of Staked Tokens: Upon pausing the program, all tokens that are currently staked will be promptly released and returned to their respective holders.
- Future Staking Program: Post-migration, we will introduce a new staking program for the Virtual Protocol token. This program will be detailed in a separate proposal, ensuring stakeholders have ample time to understand and engage with the new system.
- Immediate Vesting: As of November 2023, the vesting status of $PATH tokens is as follows: Team- 50% vested, Advisors- 66% vested, Private Investors- 78% vested, Staking Rewards- 89% vested. With most tokens nearing full vesting within the next 12 months, we propose the immediate vesting of all locked tokens during the migration process. This strategy offers several advantages:
A. Market Trends: The crypto market currently shows a preference for tokens without unlocking schedules, reducing supply overhang.
B. Reduced Sell Pressure: The current Fully Diluted Valuation (FDV) of our tokens is lower than the book value of our treasury, suggesting minimal sell pressure post-vesting.
C. Streamlined Holder Base: Our goal is to ensure a smooth transition for non-supporters from day one of migration, aligning our holder base with those who share our vision. For details on facilitating this transition, please refer to PIP10-C.
Additionally, it’s crucial to note that 35% of treasury-owned tokens will remain in a DAO-controlled multi-sig wallet and will not have more than 10% emission per year for the next 3 years, subject to deployment only after receiving governance approval.
This proposal is crafted with the aim of smoothly transitioning PathDAO into a more aligned and efficient ecosystem under the Virtual Protocol, ensuring continuity and growth for our community and stakeholders.
A) Agree to new tokenomics
B) Disagree on new tokenomics