Time to vote. The first Plenty Improvement Proposal is live!
Continuous improvements to the functionalities and tokenomics are crucial for the longevity of the Plenty protocol. Today, the first amendment proposal is launched on https://plentydefi.com/vote. Voting is possible until Wednesday, December 22, 2021.
PIP-001: Minting rate reduction
Implement a minting rate reduction from 50 PLENTY/block to 30 PLENTY/block. A reduction of the minting rate results in a new reward distribution scheme, as seen in the specification, for the PLENTY farms.
Almost half of the maximum supply of 62,000,000 PLENTY is minted already, and at the current rate all tokens will be minted around August 2022.
The goal of this proposal is to reduce the amount of PLENTY that leaves the circulation, by reducing the newly incoming supply. In the short term, this will lower the APR of the farms. However, by reducing the minting rate, the sell pressure of the PLENTY token is reduced as well.
- Update the storage of tokensPerBlock from 50000000000000000000 to 30000000000000000000
- Update farm rates
To be eligible to vote, a user must hold xPLENTY at the time of the deployment of the Plenty Improvement Proposal (PIP).
Plenty Governance: how does it work?
The Plenty Protocol is currently governed by a multisig setup. This is now expanded by a lightweight governance process. As of today, all xPLENTY holders are able to express their vision on-chain in a transparent manner. The first governance proposal on Plenty consists of the following sequence of phases:
propose > discuss > conclude > vote > execute
The discussion went on for 4 days. Based on the discussion, no modifications were made to the proposal.
A definitive Plenty Improvement Proposal (PIP) was written by the core team, as seen in the article above. Only users who had xPLENTY in their wallet before the proposal was deployed on-chain are eligible to vote.
The weight of your vote is calculated based on your xPLENTY balance at the block the PIP was inserted on-chain. Users can cast their vote for the duration of one week.
If the amount of “yay” votes concludes > “nay”, the core team will execute the PIP within 3 days.
The future: Murmuration DAO
Plenty Governance is still in its early days and will be subject to updates that further improve utility and decentralization. The intended governance process that shall govern the Plenty Protocol at a later stage will be based on the Murmuration DAO of Kolibri. This type of DAO takes a lambda and will execute the code in the lambda if the vote passes. With this feature, programmed code can be directly reviewed and implemented on-chain exactly as proposed after it has passed voting.