Hello pNetwork community!

Today, the pNetwork Community Association is thrilled to share with you the pNetwork DAO v2 and its launch in open beta! 🚀
Join it here! 👇

This new decentralized autonomous organization is a big step forward from the pNetwork DAO v1 and serves as the core of pNetwork's governance.

Reasons for pNetwork DAO v2

pNetwork DAO v2 overcomes the limitations of its predecessor and brings new features and dynamics to the pNetwork ecosystem.

Firstly, with DAO v1 there are entry barriers for node operators due to the large number of PNT tokens required and the technical skills needed. This is significant because having more nodes makes the protocol more decentralized and secure.

Secondly, the high Ethereum gas fees limit the active participation of users in governance. Wide participation is essential for decentralization and a community-driven approach.

Lastly, in DAO v1 there are no incentives other than participating in the pNetwork governance for those who staked PNT in the DAO. Wider governance makes the protocol more democratic and the more staked PNT the lower the circulating supply.

It's essential to note that the new DAO v2 doesn't take over the place of the previous one yet. The pNetwork DAO v1 will continue to operate and be maintained, and pNetwork nodes registered on the DAO v1 will continue to receive protocol rewards as usual, until a gradual migration to the DAO v2 is implemented once the new DAO will be fully integrated into pNetwork v3.

The goal of the new DAO is to make it more accessible and improve PNT's utility.

Let's have a look at how pNetwork DAO v2 achieves these results.

What’s new with pNetwork DAO v2

pNetwork DAO v2 is the core of pNetwork’s decentralized governance, where DAO members can propose and vote pNetwork Improvement Proposals (PIPs) to shape the future of pNetwork.

pNetwork DAO v2 is also the home of pNetwork Nodes, where node operators can register, manage, and claim organic protocol rewards in different currencies.

The new DAO is built on Polygon but is also available from other chains in what we call “compatibility mode”, making it more accessible and favouring the onboarding of multiple communities. Today, it supports Ethereum and BNB chains. Other networks will be added in the future, in line with the pNetwork philosophy of increasing interoperability.

Now it's easier than ever to run a pNetwork node! With DAO v2, wannabe nodes can borrow the PNT they require and earn organic protocol fees from cross-chain volumes.

At the same time, every active DAO participant gets a share of the protocol revenue thanks to the innovative lending mechanism.

Let's take a closer look at this groundbreaking feature.

PNT lending

One of the key features of pNetwork DAO v2 is the built-in lending mechanism for staked PNT. Lenders can deposit staked PNT in the lending pool, and in exchange, they can receive fees from the borrowers.

The lending only works within the DAO's constraints, and borrowed PNT tokens are only tied to pNetwork node use and cannot be taken out of the DAO because it has no collateral.

The interest rate is floating, based on residual locktime (minimum 1 epoch = 30 days) and pool utilization.
This system protects against the volatility of the number of node operators and prevents emptying the lending pool at the end of epochs.

Rewards currencies vary depending on the tokens bridged by pNetwork's users, including more than 50 different tokens, such as pBTC, PNT, and stablecoins.

A participation DAO vote is required for lenders to be included in the rewards distribution, lenders who don't vote will not be eligible to receive rewards for that epoch.

Borrowing node

Have you ever dreamed of running a pNetwork node and sharing in the protocol fees, but the PNT requirement has kept you from doing so?

Now, if you have the technical skills, you can easily join the network of pNetwork nodes by borrowing the required PNT in exchange for a small fee for the lenders.

The amount of tokens that can be borrowed is 200,000 PNT, which is the minimum amount to run a pNetwork node.

Be aware that if the node shuts down before the end of the epoch, an oracle reports it and removes it: the borrowed PNTs are released and made available to others, and no rewards are accrued for that epoch for that node.

Lenders and pNetwork nodes are rewarded with fees generated by the cross-chain activities, resulting in 100% organic rewards and not artificially generated rewards. Reward currencies vary depending on the tokens that pNetwork users have bridged. This includes over 50 different tokens, including pBTC, PNT, Stablecoins, etc.

Conclusion

pNetwork DAO v2 is a significant improvement over its predecessor, with features that make it more accessible, interoperable, and secure.

The built-in lending mechanism is a unique feature that lowers accessibility barriers for node operators and improves PNT tokenomics.

The DAO's new features and benefits will help improve pNetwork's governance and enable wider participation in its decision-making.

The launch of pNetwork DAO v2 in open beta is a significant milestone for the pNetwork Community Association in the journey towards making pNetwork more decentralized, secure, and user-friendly.

To better explain the new features and dynamics that the new DAO brings to the pNetwork ecosystem, and to answer questions from the community, an AMA will be organised. Vote for your preferred date and time here.

Join the beta of pNetwork DAO v2 here or via the decentralized domain:

Open beta - risks and additional rewards

The DAO v2 is released in beta, and the code is not audited; there could be bugs and additional risks.
Please don't stake large amounts or assets you can't afford to lose. Despite all safety measures and the safeguards we have put in place, there is still risk involved in using it, and we advise you to proceed only if you are comfortable with the possibility of encountering bugs, glitches and funds loss.

To encourage testing, interaction and feedback from our early adopters, we are launching a gamified campaign that rewards beta testers depending on how much they contribute to testing and improving the DAO v2 beta. 🎮

You can already provide feedback by filling out this form.

By participating in the campaign, you will not only help us identify and resolve any issues, but also earn rewards for your contributions.
More information on the campaign and rewards will follow 👀

The pNetwork Community Association is a Swiss association led by community members who are long-term supporters of pNetwork as a technology, token and protocol. It aims to contribute to the development, growth and education of anything pNetwork related.

pNetwork is a protocol that enables cross-chain operations, such as transferring assets from one blockchain to another. It is designed to provide interoperability between different blockchain networks, allowing users to take advantage of the unique features and capabilities of each network while still being able to access and use their assets on other networks.