The pNetwork is actively pursuing a progressive decentralisation roadmap, and decentralised governance should be the backbone of this.
The project currently incorporates two elements of decentralization: the pNetwork DAO and the network of pNetwork nodes. Both of these rely on PNT, the governance token for pNetwork. PNT token is necessary to acquire voting rights within the pNetwork DAO, allowing for active participation in governance decisions, as well as to operate as a fee-accruing pNetwork node.
The governance of pNetwork aims to be as decentralised as possible, in line with the new shape of the protocol and its 2023 roadmap. The decentralised governance of the project is achieved in tandem by the pNetwork DAO, the governance token $PNT and its nodes. In 2023, the pNetwork DAO is going to evolve becoming more decentralized and accessible than ever!
The pNetwork DAO is at the core of pNetwork’s decentralized governance, where DAO members can propose and vote on Improvement Proposals to drive and shape the future of pNetwork.
It’s also the home of pNetwork nodes, where operators can register their nodes, manage them and claim their protocol rewards (denominated in different currencies, including pBTC).
The pNetwork Token $PNT serves as the governance token for the pNetwork DAO and the staking currency for pNetwork nodes.
pNetwork is about to release its new DAO, with many new features and improvements to make it more decentralised and community-driven.
Thanks to the pNetwork DAO v2, DAO members will be able to:
- stake, vote & open votes easily via the new revamped DAO dApp
- lend $daoPNT tokens and vote, so to earn organic protocol fees
- borrow $daoPNT, run a pNetwork node and be rewarded for their work.
The DAO is accessible from the following link https://dao-app.p.network/.
Participation in pNetwork governance is open to all PNT holders who stake their tokens within the pNetwork DAO. Staking is supported on both the Ethereum and BNB chain networks, and other networks may become available with the new DAO v2.
PNT holders can easily stake their tokens through the DAO dApp on the Ethereum network, while those holding PNT on the BNB chain can stake their tokens as shown on the Registration on BSC instructions.
Tokens staked on the pNetwork DAO are subject to a minimum timelock of 7 days, which can be extended based on the user's preference.
Currently, DAO members benefit from participating in pNetwork governance, while the upcoming DAO v2 will bring new features and benefits. Visit the DAO v2 section for more details.
PIPs or pNetwork Improvement Proposals are proposals that are opened by pNetwork DAO members who have at least 200,000 PNT staked (called daoPNT) and can be voted by all DAO members.
This requirement is in place to ensure that only DAO members who have shown a concrete commitment to pNetwork can open a PIP. This reduces the risk of spam and proposals about trivial matters.
However, if someone who does not meet the staked PNT requirement wants to propose a PIP, they can submit it on the pNetwork forum or other official pNetwork channels. If a team member or anyone else with at least 200,000 daoPNT wants to support the proposal, they can open it on behalf of the proposer.
Every DAO member cast a vote on open DAO proposals. The impact of each vote is weighted by the amount of PNT staked by the member. For example, a DAO member with 100 daoPNT has ten times the voting power of a member with 10 daoPNT.
This process ensures that proposals are made by dedicated and committed DAO members, while also giving everyone a chance to have their voice heard in the decision-making process.
Open a PIP and voting for it can easily be done on the DAO dApp.
The pNetwork DAO v2 is the latest central point of pNetwork's decentralized governance.
It serves as a platform where DAO members can propose and vote on Improvement Proposals to steer the direction of the pNetwork project. Additionally, pNetwork nodes can use the DAO v2 to register their nodes, manage them, and claim their organic protocol rewards.
The pNetwork DAO v2 compensates for the limits of the former version: the new DAO is more accessible thanks to its built-in lending mechanism that meet the needs of both PNT holder and technical expert, thanks to cheaper and optimized on-chain transactions.
The structure of the new DAO aims to increase the number of pNetwork nodes, making the protocol more reliable and secure, while increasing the benefit of staking thanks to an improved tokenomics for daoPNT.
This new DAO architecture will be fully decentralized and seamlessly integrated with pNetwork v3, the upcoming architecture of pNetwork.
DAO v2 has been released in open beta!
The pNetwork DAO v2’s lending feature is an exclusive cutting-edge solution that rewards daoPNT tokens holders with no technical background (required to run a pNetwork node to get protocol fees) and favours tech experts that don’t have the required PNT to run a node independently.
daoPNT holders can deposit their tokens in a lending pool for a specific amount of time and by doing so they become lenders. Lenders will be rewarded with organic rewards coming from the protocol fees. The rewards on the lender side depend on:
- cross-chain volumes of the protocol - a share of the protocol fees are distributed to the lenders
- amount of daoPNT deposited in the lending pool - the more PNT deposited, the higher the rewards
- residual lock-time - decreases over time and as the expiration date approaches, the lender APY falls gradually, unless the lender renews the commitment.
The minimum lock period for lending is 1 epoch (approximately 1 month).
“If the node gets shut down before the end of the epoch, an oracle reports it and automatically unregisters it: the borrowed PNTs are released and made available to others, and no rewards are accrued for that node on the current epoch.
This system aims to give some protection from the volatility of borrowing fees (as they depend on the lending pool size) so to incentivize some stability to the number of registered nodes based on the lending pool.
Lend your daoPNT on DAO v2!
On the other side, tech experts willing to run a pNetwork node and get organic protocol rewards can borrow PNT from the lending pool by paying a fee.
The rewards on the borrower-node side depend on:
- cross-chain volumes of the protocol - a share of the protocol fees are distributed to the nodes
- the fee paid to borrow PNT tokens from the lending pool. The borrowing fee depends on the utilization ratio of the lending pool - the higher the utilization ratio, the higher the borrowing fee.
The amount of tokens that can be borrowed is 200,000 PNT only (which is the minimum amount to run a pNetwork node).
Nodes with borrowed PNT do NOT participate in DAO voting. Lenders, instead, can participate and their vote is weighted for their entire amount of daoPNT (borrowed or not).
Nodes with borrowed PNT cannot be relayers in pNetwork v3 for security reasons.
It is worth mentioning that PNT can be borrowed solely for running pNetwork nodes and the borrowed PNT tokens are not transferable nor can be taken out from the DAO contracts.
Become a borrowing node on DAO v2!
The pNetwork DAO v2 comes with other features that will gradually be released over the next months.
- Participation vote - required by lenders to get the protocol rewards
- Multi-chains support - the DAO v2 is based on Polygon, and made available on Ethereum, BNB chain and other networks, in line with the interoperability vision of pNetwork.
- Automatic epoch renewal
- Continuous fee stream for all nodes
- Automatic fee distribution
- Integration within pNetwork v3
The PNT token is a native ERC-20 token on the Ethereum network and it is made available on Arbitrum, Polygon, BSC, Telos, EOS and Gnosis chain via the pNetwork protocol. It is supported within decentralized platforms including Uniswap, Quickswap, Defibox and Pancakeswap as well as by centralized exchanges including Binance, Kucoin, Bitfinex and Gate.io among others.
Read more about PNT and its tokenomics inPNT - Governance token
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