PCCP 9 for PDIP 19 - Update to Tokenomics

ParagonsDAO Improvement Proposal
1

Authored by Councils

Summary

The current version of tokenomics applies changes that alter the fabric of what $PDT was started as, a bonding token for Parallel NFT assets and future gaming ecosystems, and therefore require actions to be taken at the contract level to meet the changes. Minting is still a callable function in the $PDT contract owned by the Multisig and needs review or change.

Motivation

Since the change of the tokenomics in $PDT we have seen a strong change in how the token responds with buybacks and burn. Given the significant changes in the strength of the token the Council upon review has decided it would be best to consider a contract call to the $PDT token contract for the minting function to cease.

Rationale

The change in tokenomics now doesn’t support the need to mint new tokens for bonding events with a significant reserve and a buyback strategy in place; it makes more sense to remove that for both tokenomics and security.

Specification

If voted in the changes would be made with a simple call of “Finish Minting” in the contract by the Paragons Council to remove the ability to mint any new tokens moving forward.

This change would complete the requirements for $PDT to be a purely deflationary token.

This can be made immediately upon vote being approved by the Paragons Council and Treasury Council.

5 Likes
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Full support for tying off functions that are no longer needed and solidifying supply.

2 Likes
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TBH I wasn’t aware of the nature of the $PDT contract and function calls, but this makes total sense to me in the context of previously approved changes.

2 Likes
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This makes perfect sense but also would seem to be moot if we just do this upon moving to BASE since I thought that would be a new contract anyway and supposedly coming soon.

2 Likes
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The token on BASE is linked to the Mainnet token via LayerZero’s OFT adaptor.

In other words - it’s not independent, the mainnet token is the source/parent and won’t, for example, be deprecated. As it stands, the token could be minted more on Mainnet and then bridged to Base.

And yes, Base launch is coming within days after we call this function :slight_smile:

1 Like
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Performing any clean up of unnecessary functions is both prudent and wise in terms of maintaining security. All for this change