Founder’s DAO Improvement Proposal - Enable PVFD staking to protect the DAO

Title: Enable PVFD staking to protect the DAO
Author: Metairoas
Type: Smart Contract Implementation
Implementer: PV Team
Created: March 15, 2022

Abstract: If the vote passes, PV should implement a staking method for PVFD to separate between current bought PVFDs and long term holders. This will protect the DAO from flippers that rush in and want to cash out from our treasury.

Summary:
As our treasury becomes more valuable over time, we need some mechanics to protect those assets from short term flippers or bad actors. For example, there is currently a vote to distribute the mintpass two, to all PVFD holders. Let’s assume the community votes ‘yes’ and those mintpasses would have a higher value. This could cause flippers to buy the PVFD, get the mintpass two, dump the PVFD to lower levels than it was before. Sounds familiar? Exactly this happend based on the rumors that PVFD holders will get company shares (PV) or a 60k $ airdrop. A solution could be, to limit the amount of PVFDs who will be eligible to receive a possible payout or vote on proposals. Some initial limitation could be:

  • Stake for at least x days to be able to submit votes on proposals.
  • Stake for at least x days to be eligble to receive a payout.
  • Stakers receive $pow as an incentive ($pow coming from our own MH & Sidekick staking maybe)

This limitations will be very difficult to calibrate and I suggest to keep them simple for the beginning and to not overcomplicate things.

Benefits: Protect the DAO from flippers and reward the long term hodlers.

Drawbacks: Because we need PV to implement the staking, we could affect the schedule for other work PV does.

Please reply if you have anything to add/subtract to this proposal or if you have any general comments or concerns.

5 Likes

love the idea! I think this is a very important step to protect the DAO & would be worth pushing other things a bit back to accomplish this.

Great great suggestion, I think something along these lines makes a ton of sense. This is definitely a great start for us to work on.

Here’s an idea off the top of my head. It’s not really fleshed out but, something like:

Accumulate 1 $POW a day per fdao staked (you can claim anytime but, you claim all at once when you do). Votes are conducted by using the accumulated $POW , your vote weight is based on $POW used. Any $POW used in a vote will be removed from your claimable total and returned to the FDAO wallet’s control. We can cap each vote so that you are only allowed to use a max of 30 POW per FDAO in any vote.

  • After holding for a long time you will eventually want to claim your $POW and that would reset your accumulated $POW back to 0. We can also cap the max $POW used in a vote to level the playing field for newcomers.
  • Increases voting power for holders that have held for a long time. Also increased voting power for those people on votes they have conviction on.

The same idea could be used for an artificial VP (voting power) token or something as well.

1 Like

I like the proposal, in principle, but we should first find out if Pixel Vault has their own staking plans for PVFD. I wouldn’t want it to interfere with any plans that they have for staking, including the DeFi game.

2 Likes

I love the idea of staking our PVFD tokens! Absolutely! But I think this is something we need to think very hard about to find the optimal solution. Ideally, staking PVFDs helps us identify the true holders, as well as enter some scarcity into the supply of PVFD available.

Things I like: 1) needing to have staked for X days in order to submit a proposal. 2) If/when the DAO begins giving away rewards, airdrops, etc, it should only go to those who have staked X number of days. 3) ???

Would be great to have a group working on designing staking elements, etc. this is such a major task for this DAO.

Thanks for this proposal!

2 Likes

Great idea - I’d support this if PV didn’t have something else lined up. Only q would be where does the $POW come from to reward stakers? I’d be surprised if the full allocations weren’t already planned out and we don’t really have a say in how these are managed.

FWIW though I’d be happy to stake my PVFD without the $POW rewards.

I doubt PV has any plans to create a staking incentive program for the PVFD. I think the ship is in our hands now

Ya, where does the $POW or $PUNKS for staking a PVFD come from?

It could come from the $POW that our planets and sidekicks will generate.
It could come from the 25 million $PUNKS that we have
What if we used the 25 million PUNKS to create an LP and then issued the LP token as a reward?

Lots of ways we could come up with rewards for those who stake their PVFD, but it needs to be sustainalbe. I dont want to drain the DAO just so we can have staking of the PVFD token

To progress with this we need some support from / collaboration with someone from PixelVault.

Thanks for the proposal. I fully agree to stake the PVFD also to decrease market supply.