PERL Contract and Infrastructure Upgrade

TLDR

To future proof the PERL token and optimize it for DeFi, the Perlin team will be conducting a token swap starting [24/Aug/2020]. There 4 critical reasons to upgrade the infrastructure of PERL through a swap are to:

1. Increase the decimal places of PERL from 9 to 18, this is to maximize compatibility with protocols integral to PerlinX, such as UMA.
2. Introduce DAO Functionalities as Perlin moves towards a decentralized governance model.
3. Enable an inflationary monetary policy and programmable incentives.
4. Remove the Pause function in the PERL token code. Removing this will ensure Perlin cannot be stopped in the future and is suitable for DeFi

Binance will support the Perlin (PERL) smart contract upgrade/swap and handle all technical requirements for users holding PERL on Binance. Deposits and withdrawals of PERL will be suspended starting from 2020/08/24 4:00 AM (UTC), at which point the upgrade will begin. Trading of PERL will not be affected during the upgrade period.
Users can also swap their legacy PERL into new PERL at the ratio of 1:1 via the swap interface on PerlinX (The platform will be live on 24/Aug/2020). Once the swap starts on 24/Aug/2020, the old PERL token will cease to have any functionality (other than to be swapped). The token swap will span across 3 months, ending on 30/Nov/2020. Past this date, users will not be able to swap their PERL through PerlinX.

PerlinX — Fully Committing to the DeFi Vision

Short-term liquidity bootstrap programs have seen immense success across the DeFi space, usually resulting in a mad rush of activity on the platform providing the incentives. However, these programs have limited ability to motivate participants to stay on their platforms long-term. In addition to short-term incentive programs, the ongoing rewards distributed to liquidity providers (LPs) on PerlinX are based on trading fees incurred by other participants. Any new system like PerlinX will struggle to generate the volume necessary for trading fees to become substantial enough to incentivize LPs. As such, there needs to be a mechanism in place that allows PerlinX to adequately reward LPs while PerlinX gains traction.

An Inflationary Monetary Model to Reward PERL Holders & Create a Sustainable PerlinX Platform

Not only does Perlin stand upon the shoulders of giants, but it is also blessed with the benefit of hindsight and experience. Many projects from the ICO boom in 2017 were faced with immense difficulties in galvanising their token holders since they could not provide the necessary incentives due to fixed token supply. In stark contrast, leading-edge DeFi projects managed to usher in a new golden age of liquidity and trading activity on their platforms at a time where many other projects could not by introducing an inflationary monetary policy that strongly incentivises holders to participate. By adopting carefully designed inflationary models, pioneering platforms such as Synthetix have paved the way for other projects to more effectively evolve and adapt to the changing crypto landscape.

With an inflationary supply, active long-term PERL holders will be able to increase their percentage ownership of the growing network through staking. On the flip side, inactive holders who do not stake will not share fully in PerlinX growth. This shift in policy will therefore allow Perlin to galvanize all PERL holders to participate and actively grow the PerlinX ecosystem. You can also check out this article for a general explanation of why inflation is essential for growing economies.

However, while we strongly believe this shift will allow Perlin to provide substantially improved utility for PERL holders, we will be consulting intensively with the community and all key stakeholders before moving forward with any shift away from the existing fixed supply model. The early incentive program will be funded from the Perlin treasury as part of our detailed analysis to determine how inflation is likely to play out and can be maximised to benefit the community.

New & Improved PERL Token Functionality

Switching to an inflationary supply is just one aspect of Perlin’s commitment to DeFi. Based on our ongoing research and development, we recognised that the current infrastructure of the PERL token can be significantly improved. Currently, the PERL is unable to perform all of the functions necessary for PerlinX to grow and become fully optimised for DeFi. To address this, the Perlin team will be conducting a token swap and issuing a new future-proof PERL with all the capabilities to scale with PerlinX. The new and significantly improved token will have programmable incentives, DAO functionalities, minting and burning capabilities, capability for inflation, and ultimately be a true DeFi asset.