On Monday, decentralized autonomous group Panda DAO put forth a brand new proposal to dissolve itself and return belongings again to buyers. In accordance with the seven-point referendum, between 500 million and 700 million PANDA tokens out of the 1.292 billion PANDA in circulation could be distributed amongst buyers. Of these remaining, some could be redistributed amongst liquidity suppliers. In the meantime, an estimated 50 million PANDA will probably be burned, and one other 44.56 million PANDA will go towards compensation for eight of the challenge’s core builders.
Ought to the referendum move and the dissolution course of full, the Panda dev workforce plans to take away PANDA from Uniswap, publish all the challenge’s open supply code and shut down all social media underneath the Panda DAO umbrella. As for causes for the dissolution, the Panda DAO workforce wrote:
“Panda DAO has been on-line for almost one yr. We have managed to sidestep quite a few market downfalls throughout that point. But, the actual disaster we confronted was coping with management issues inside our DAO.”
One core member, going by the pseudonym “Panda,” lamented that the workforce confronted an extended, uphill battle in its challenge improvement. “Our neighborhood wished an increasing number of reassurances that Panda was on target,” he mentioned, “however builders do not work free of charge, and [I think] nobody understands the best way to endure an extended, painful bear market.”
As advised by “Panda,” the inner turmoil throughout the DAO tremendously hampered the effectivity of operations. After elevating 1,900 Ether (ETH) at a worth of 1 ETH = 500,000 PANDA final yr, the neighborhood was conflicted about the best way to finest use the funds going ahead.
“At the moment, the [nonfungible token] NFT market was on hearth. Because of this, a lot of our customers wished us to create Panda NFTs. However having been by the crypto bear market of 2017–2018, we knew that the market was displaying indicators of FOMO [Fear of Missing Out], and it was solely a matter of time earlier than a crash was coming. Thus, we made the tough choice to reject the neighborhood’s calls for for Panda NFTs.”
“Panda” defined that whereas nonfungible token, or NFT, drops would generate income for the neighborhood, it will achieve this on the expense of the protocol’s credibility. “In the long term, the dangers related to the latter would outweigh that of the previous,” he mentioned.
Since then, it seems that there had at all times been a rift between Panda builders and customers. “We had lots of concepts however little capital; our customers wished us to develop Panda Apps and even type a enterprise capital division, however we needed to say no to those concepts.”
A buyback proposal was additionally discontinued for comparable causes. “At the start, we purchased again 2 million PANDA tokens,” wrote the core workforce member. “However many voices locally wished me to proceed the buyback, although it was not in my energy to take action. I am simply certainly one of many stakeholders tasked with managing our treasury.”
As time went on, uniting discontented voices turned unattainable. “One faction wished builders to give attention to short-term earnings that had been low-risk, akin to token buybacks. One other faction wished long-term features, refuse all buybacks, and stash the cash contained in the treasury.”
“Panda” wrote that it took him many “sleepless nights” to achieve the choice. However, the developer mentioned that he had no regrets about placing forth the referendum. “We fell shy of many accomplishments, however at the least we tried and did not throw our neighborhood underneath the bus.” Throughout its one year-tenure, Panda DAO’s protocol went stay and have become the largest DAO on the Dework blockchain. As well as, “Panda” says that he hopes the dissolution proves that “code is legislation” within the blockchain area.
“The challenge succeeded, nevertheless briefly, due to good contracts defending neighborhood agreements. We had one for ERC-721, we have now one now for the return of PANDA funds, and so on. With out good contracts, we’d have by no means been capable of sidestep a lot market turmoil whereas guaranteeing the surety of our customers’ funds.”
— Panda ( ) (@hellopandadao) September 18, 2022