On Monday, decentralized autonomous group Panda DAO put forth a brand new proposal to dissolve itself and return assets again to traders. According to the seven-point referendum, between 500 million and 700 million PANDA tokens out of the 1.292 billion PANDA in circulation can be distributed amongst traders. Of these remaining, some can be redistributed amongst liquidity suppliers. Meanwhile, an estimated 50 million PANDA will be burned, and one other 44.56 million PANDA will go towards compensation for eight of the venture’s core builders.
Should the referendum move and the dissolution course of full, the Panda dev workforce plans to take away PANDA from Uniswap, publish the entire venture’s open supply code and shut down all social media below the Panda DAO umbrella. As for causes for the dissolution, the Panda DAO workforce wrote:
“Panda DAO has been online for nearly one year. We’ve managed to sidestep numerous market downfalls during that time. Yet, the real crisis we faced was dealing with management issues within our DAO.”
One core member, going by the pseudonym “Panda,” lamented that the workforce confronted a protracted, uphill battle in its venture growth. “Our community wanted more and more reassurances that Panda was heading in the right direction,” he mentioned, “but developers don’t work for free, and [I think] no one understands how to endure a long, painful bear market.”
As informed by “Panda,” the internal turmoil throughout the DAO drastically hampered the effectivity of operations. After elevating 1,900 Ether (ETH) at a value of 1 ETH = 500,000 PANDA final yr, the group was conflicted about how to greatest use the funds going ahead.
“At that time, the [nonfungible token] NFT market was on fire. As a result, many of our users wanted us to create Panda NFTs. But having been through the crypto bear market of 2017–2018, we knew that the market was showing signs of FOMO [Fear of Missing Out], and it was only a matter of time before a crash was coming. Thus, we made the difficult decision to reject the community’s demands for Panda NFTs.”
“Panda” defined that whereas nonfungible token, or NFT, drops would generate income for the group, it would accomplish that on the expense of the protocol’s credibility. “In the long run, the risks associated with the latter would outweigh that of the former,” he mentioned.
Since then, it seems that there had all the time been a rift between Panda builders and customers. “We had a lot of ideas but little capital; our users wanted us to develop Panda Apps and even form a venture capital division, but we had to say no to these ideas.”
A buyback proposal was additionally discontinued for comparable causes. “At the beginning, we bought back 2 million PANDA tokens,” wrote the core workforce member. “But many voices in the community wanted me to continue the buyback, even though it was not in my power to do so. I’m just one of many stakeholders tasked with managing our treasury.”
As time went on, uniting discontented voices grew to become unimaginable. “One faction wanted developers to focus on short-term profits that were low-risk, such as token buybacks. Another faction wanted long-term gains, refuse all buybacks, and stash the money inside the treasury.”
“Panda” wrote that it took him many “sleepless nights” to attain the choice. Nevertheless, the developer mentioned that he had no regrets about placing forth the referendum. “We fell shy of many accomplishments, but at least we tried and didn’t throw our community under the bus.” During its one year-tenure, Panda DAO’s protocol went stay and grew to become the most important DAO on the Dework blockchain. In addition, “Panda” says that he hopes the dissolution proves that “code is law” within the blockchain area.
“The project succeeded, however briefly, because of smart contracts protecting community agreements. We had one for ERC-721, we have one now for the return of PANDA funds, etc. Without smart contracts, we would have never been able to sidestep so much market turmoil while guaranteeing the surety of our users’ funds.”
— Panda ( ) (@hellopandadao) September 18, 2022