PAL Whitepaper Update

in Palnet5 months ago

By a unanimous vote of the core team, the Minnow Support Project has approved the following white paper to be published to the HIVE Blockchain describing changes to PAL, which is a Hive-Engine token to be powered by scotbot and seen in a Nitrous instance through https://www.palnet.io.

Over the last 2 years we have seen a lot of changes in our ecosystem and in crypto as a whole, and during that time PAL has been quietly accumulating in the hands of those who saw a future in the project. Getting a fair distribution out while also staying true to our core mission of helping the little guy has been tough to balance, but after years of claimdrops, airdrops, post rewards, mining, Discord rewards, and prizes, we finally feel that the main distribution phase of this project is now complete.

As such, we are updating the PAL whitepaper to reflect new changes in the way inflation rewards are programatically payed out going forward.

Executive Summary

The Minnow Support Project is updating the inflation metrics of the token called PAL. These changes will radically alter the way the token is distributed to users.

Current Distribution of PAL

  • There were only ~7.7M tokens initially minted and distributed.
  • 883,066 PAL went to the Minnowsupport account
  • 60,000 went to each moderator/team member
  • Over 4 million were given out in an claimdrop to a white list of 16000 people
  • Another ~1.2 million were given out during a series of 9 airdrops proportional to PAL stake
  • Tons more given out for PoB, PoI, and mining over ~19 months

Team Rewards

900k PAL in total was distributed among the core team.

@aggroed
@ausbitbank
@clayboyn
@crimsonclad
@danielsaori
@discordiant
@drakos
@followbtcnews
@isaria
@juliakponsford
@kubbyelizabeth
@ma1neevent
@r0nd0n
@swelker101
@victoriabsb

On Going Distribution Changes

All financial systems relying on currency require faucets for the currency as well as sinks. A faucet is how the currency enters the system. A sink is how it is removed from the system. Going forward, PAL will have 3 primary faucets that stem from token inflation: Proof of Brain, Staking, and Mining.

Overall Inflation PAL will be set at 5%.

Overview:
Initial PAL 7.7M
Initial annual inflation 385,000
Distribution:
Staking: 30%
Mining: 60%
PoMod: 5%
PoB: 5%

Staking 30% of the inflation will be distributed to token holders who have staked their coins.

Proof of Brain Proof of Brain and rewards voting (author and curator rewards) on chain have been reduced to 5%. You can still earn PAL by including the palnet tag on your posts, and curating the tag, but it will be significantly less than before.

Proof of Moderation Similar to how the HIVE blockchain provides 10% of the inflation to witnesses; 5% of annual inflation goes to @msp-finance for administrative tasks and management and to cover network expenses.

Proof of Mining 60% of the inflation can be mined. To mine the token purchase and stake PAL Miners (PALM) and PAL MEGA MINERS (PALMM). PALM mines at a rate of 1X, and PALMM mines at a rate of 4X. PALM and PALMM are available on hive-engine.com.

PAL Settings

7 day payout windows
unstaking occurs in 28 days in 4 installments

Scotbot Settings

Figures and variables for the nerds out there:
"author_curve_exponent":1.05,
"author_reward_percentage":50.0,
"cashout_window_days":7.0,
"curation_curve_exponent":0.5,
"downvote_power_consumption":2000,
"downvote_regeneration_seconds":432000,
"issue_token":true,
"json_metadata_key":"tags",
"json_metadata_value":"minnowsupport",
"reduction_every_n_block":10512000,
"reduction_percentage":1,
"rewards_token":15.0,
"rewards_token_every_n_block":400,
"token":"PAL",
"token_account":"minnowsupport",
"vote_power_consumption":200,
"vote_regeneration_seconds":432000

Reward curve is just slightly superlinear to encourage keeping PalPower on one account rather than spread out.
Author reward is 50:50.
Cashout window is a 7 day payout like HIVE.
There is a downvote pool. Here you get 1 free downvote a day.
Downvoting power goes from 0-100 in 5 days like upvote power refills on HIVE.
To get a vote which receives PAL the post has to include palnet as a tag
The inflation rewards shrink every year by 1% (faster than HIVE, but will change to 0% shrinking by the time it hits 4% annual inflation ie inflation won't go smaller than 4%).
Voting calculation works like HIVE.
You get 10 votes a day similiar to HIVE.
Your voting power recharges completely from zero over 5 days (20% per day).

Mining Rewards

60% of inflation are available from mining.
Mining rewards are once an hour. 10 separate distributions are made every hour to accounts that have staked PALM and/or PALMM.

Disclaimers

The PAL token provides no income or profit sharing from any account that the Minnow Support Project manages.

The Minnow Support Project is offering the token on an "as is" basis and provides no guarantee that additional work or effort will be made other than supporting the existing community with the existing tools.

While it is possible, especially while testing the accurate price of the PAL token that prices may fluctuate in the market the Minnow Support Project makes no claim that the token prices will rise in the future beyond the initial lauch (or the initial discounts) listed above.

We are not a business nor intend to be one.

The Minnow Support Project will put the raised HIVE into HIVE Power. The primary use of the HIVE power is to ensure the long term existence of the network and pay server costs and administrative costs. PAL on @minnowsupport will not be used to pay for development of the network.

The Minnow Support Project warns that there is long term inflation of the asset built into the design of the asset.

PAL images





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why should you get PAL? What are the benefits?

I would like to know the answer as well.

While the information hasn't been closely guarded, we have yet to make the official post. However, I can say that we have a nice prediction that many people are going to like the market we release.

How come? All it seems Pal is turning into token for miners, what are these sinks? The strategy that relays mainly on miners and stakers does not seem complete. Could you please reveal more about the 'market'?

Their prediction market, was what he was referring to. Gambling on anything. That's their big "sink" for PALtoken.... that's it. They took away their faucets of using their tag, which will mean less PALNET tags being used. And they took away the faucet of talking and engaging with people in their discord server. So you have functionally ZERO faucets to use UNLESS YOU PAY for a miner or buy PAL to stake it.

Their Prediction market requires you to have 10,000 staked PAL tokens and they just functionally halved the ways you can collect PAL. Under 100 people have more than 10k PAL staked. I wonder who the vast majority of them are, and by proxy who the vast majority of the "Oracles" on dublup are, collecting all the "oracle fees" 🤑

" Under 100 people have more than 10k PAL staked. I wonder who the vast majority of them are, and by proxy who the vast majority of the "Oracles" on dublup are, collecting all the "oracle fees" 🤑"

You could have been one, but you dumped every bit that you received. Sorry that you don't like the changes.

Enjoy propping up that market nobody uses. I'm sure you'll abandon it just like lensy anyway.

No worries. Again, sorry about your butt-hurt.

good question, I would ask the same but you are faster :)

This ought to be an interesting twist to see if staking works better than PoB. I'm all for it. Hopefully that new dublup.io dapp (or others to come?) for palnet will provide enough use case for PAL to make it desirable as a token overall. Bravo to this.

I think is time to change your avatar

Posted using Dapplr

Interesting proposal, I must read the white paper on this financial protocol.

That's good, but this white paper is missing what PAL aims to be.

Considering Price of Miners, It is raising around 1.3 Million Hive, which will be powered upas mentioned:

The Minnow Support Project will put the raised HIVE into HIVE Power. The primary use of the HIVE power is to ensure the long term existence of the network and pay server costs and administrative costs. PAL on @minnowsupport will not be used to pay for development of the network.

That's good, but this white paper is missing what PAL aims to be. I hope you plan to elaborate pal use case and future roadmap (if any).

 5 months ago (edited)

It is raising around 1.3 Million Hive

Curious where you got that figure, that has not been the case nor are there any expectation for that to be the case.

Also, this isn't a paper about why you should buy anything, or what's going to be done in the future. It just outlines how things are structured. A vision/roadmap would be nice, but as I understand it there are certain legal implications that could cause problems should anything be construed as a promise to token holders, so as always just do what you think is best for you.

Appreciate the update... I guess I need to further research the background of PAL; as best I can tell from this the primary function now is "a token you can mine." Which is cool, but the purpose of this token is....? I see a mention of "helping the little guy" and was always happy to see minnowsupport as part of the Steem/Hive ecosystem. I also see @swelker101 make mention of "a market," which sounds intriguing...

=^..^=

I give this double face mask.

HONK ON

 5 months ago Reveal Comment