Pangea ($PNGA) Token Economics
0x5349
April 14th, 2022

The following article outlines Pangea's Token Economics in detail. Extensive thought and research has been put into creating a tokenomics model that i) incentivizes participation, ii) rewards holders iii) does not suffer from selling pressure & intense devaluation & iv) creates deflationary buy pressure. Additional effort has been made to ensure that whales and large players are not able to buy an extensive amount of tokens at pre-sale price, to avoid anyone having too large control of the token (& price). The vesting schedules have been made to ensure that there is a long-term incentive model in place for the core team and contributors, that both fairly rewards the team and community while also keeping the token price stable.

Token design is a novel practice and there are many models that are currently being developed or have yet to be developed to best address token utility, token distribution, and token economics. Thus the token design will be an ongoing iteration that is co-created with the community to create the best possible tokenomics for Pangea. Remaining open-minded and receptive to potential improvements is a feature, not a bug.

The first part of this article will detail the PNGA Token Utility and the benefits that holders of the token receive. This will be followed up with an outline of the token supply, distribution and emissions. Pangea has worked closely with InternDAO - experts in the fields of token design - to create an incentivizing, efficient, and sustainable token economy.

PNGA Token Utility

The utility of the PNGA token will be derived from three main applications: Governance, Staking, and token holders benefits.

The primary application of the PNGA token will be for participation in governance of the DAO via a token-weighted proposal system. PangeaDAO has structured incentives to heavily stimulate governance participation, as a large portion of the total supply of PNGA tokens is allocated for governance mining rewards. The PNGA token represents membership to Pangea and will provide access for holders to vote on proposals set forth by the community, as well as putting forth proposals of their own. These proposals will include but are not limited to; investment decisions, land use decisions, changes to governance structures/frameworks, DAO leadership elections, focus pivots, and more!

Staking is the secondary application of the PNGA token. Stakers who lock up their PNGA will be compensated in a multitude of ways. First, by staking PNGA users will receive sPNGA, and the rewards from the staking program will be time-weighted, meaning that the longer a token holder locks their PNGA, the greater the payout will be. Thus, locked staking PNGA allows users to boost their governance power and increase their reward multiple. Single-sided PNGA stakers will be proportionally distributed PNGA tokens from the liquidity mining allocation. In order to balance emission rates and further align PNGA stakers with the long-term goals of PangeaDAO, once earned, all time-locked staking bonus rewards (anything above reward multiple of 1x) will be linearly vested over 6 months. Note that through decentralized governance it will be possible for the DAO to vote to change these rewards. DAO revenue may be added to these liquidity incentives, the liquidity incentives may partially be replaced with rewards originating from DAO revenue, or a buyback and burn mechanism may be implemented. The rationale behind these community decisions would be to subsidize a staking yield through liquidity rewards as the protocol grows, and eventually even provide a substantial staking yield directly out of DAO revenues. Read our Mirror article giving more information on staking and liquidity here.

The third utility of the PNGA token is access-related applications and other various additional benefits to creators, landowners, DeFi aficionados, and even larger organizations. While the possibilities are endless and ever expanding, below is an outline of how Pangea aims to bring immediate value to members. These decisions will be primarily at the behest of DAO governance, and depend on the contents of the DAO treasury. Access related applications may include, but are not limited to, special token-gated access to events and HQs, participation in private groups or Discord channel access, priority to Pangea's Creators Guild, job opportunities (bounty-style) for creators, or anything involving use of the DAO’s holdings. Businesses and PangeaPartners will also be given the option to buy and stake PNGA tokens to access our land and services at a slightly discounted rate to increase buy pressure on the token as well as further aligning our incentives and creating a more synergistic relationship.

Opportunities for all PNGA Token holders

  • Join Pangea Creator’s Guild, Pangea Squads or Pangea Partners
  • Complete Bounties for Pangea
  • Work with Pangea Partners to realize projects
  • Access to token-gated holders Discord channels
  • Access to our virtual lands, events, community hubs/HQs, and more
  • First access to NFTs, Airdrops, or other perks that may be developed in the future

Opportunities for Creators

  • Direct access to projects: Pangea will be relying on the force of our Creator’s Guild to carry out projects for the DAO, which creates an excellent earning opportunity, whether you’re an architect, builder, developer, graphic designer, content creator, or other type of artist. We are open to all people who want to create.
  • Co-learning: In tandem with our partners, Pangea will seek to educate, train, and develop the skills and experiences of our Creator’s Guild. We want the world to recognise being a part of Pangea as a stamp of excellence for creators.
  • Land to build: One of the big issues for creators is the lack of access to land/space to build. By joining PangeaDAO, this will no longer be a problem.
  • Funding: Through our Grant Program, we will give power to our Creators by granting funds for exciting individuals and projects. One of the first initiatives we will be carrying out is a large buildathon with partners that will seek to reward content creators and builders. More information on this Grant Program will be coming in another Mirror article.

Opportunities for Partners

  • Direct access to the Creator’s Guild: For many businesses, getting in front of the creators necessary to build out virtual land is difficult, unorganized or expensive. Being a part of this will give Pangea Partners direct access to our Creator’s Guild.
  • Opportunities to co-develop on Virtual Real Estate opportunities: Pangea Partners will seek to create a multitude of projects and this will give potential partners the chance to work with us on some of these endeavors.

Opportunities for Current or Prospective Metaverse Landowners

  • Own part of a diverse multi-world and chain agnostic portfolio, rather than just one parcel: For people that own or wish to own virtual real estate, Pangea can be seen as a diverse portfolio investment rather than buying a particular piece of land and speculating on the price of a single parcel or world.
  • Own as much or as little land as you like, with much better liquidity: When people buy PNGA, they own a part of Pangea - thus a part of all the lands of Pangea. This allows for buying one's preferred quantity of a more liquid asset. You can also take profits as and when you like - unlike many plots of land.
  • If you have barren land - or land that is not being built or developed, you’ll be able to trade it in return for PNGA tokens. Undeveloped land is by nature unable to accrue value other than from speculation of appreciation. Creating content and experiences on the land is what provides and extracts the true value to it. We are creating a mechanism that finds an enticing and fair price for all parties involved and will roll this In-Kind Land Contribution initiative out in the coming months.

In-Kind Land Contributions

Pangea has found a novel way to bolster our treasury - one which will give benefits to landowners and free up space for creators to build, while also strengthening our treasury. The In-Kind Land Contribution will be a mechanism that allows land owners to contribute their land to Pangea, in return for an algorithmically calculated number of tokens.

Since Land will be an important asset for Pangea, it is to the benefit of both our community and our Creator’s Guild that we sacrifice tokens for land. We also believe that there are many benefits for landowners to give up their land in return for PNGA tokens. The pricing mechanism we release will seek to find the fair yet enticing value for this transaction.

Example:

Landowner in Decentraland puts up 3 empty floor plots worth 9 ETH/ $27k

At this time PNGA token is worth $20/token

Landowner swaps 3 plots of LAND for 1350 PNGA + X% PNGA bonus from incentive program

They now hold PNGA tokens and get access to a well diversified portfolio spanning multiple virtual worlds as well as being able to stake PNGA at Y% APY. The Pangea Treasury is now 3 LAND plots bigger, and the land will be developed by our Creator’s Guild, increasing its value.

*Decentraland will be one of the many virtual worlds we operate in and we will aim to set up this mechanism on our website and integrate with as many worlds as sustainably possible.

This is truly a new way to build a treasury, and it hasn’t been done in this space before. It therefore requires extensive thought and planning to execute well. Pangea is excited to show the community what we are working on and will launch this initiative later this year!

Token Supply

The maximum supply is 100,000,000 PNGA tokens. This is a hard cap on the total number of tokens so there is no possibility of additional minting/inflation. The tokens will primarily be issued via a Presale Allowlist followed by a Public Sale on CopperLaunch. The maximum initial circulating supply will be 30,000,000 PNGA, which encompasses the Allowlist and Public Sale allocations. Any unsold PNGA tokens in the Public Sale will be reverted into the DAO Treasury. Additional PNGA will be distributed through various incentive programs including Liquidity, Staking, Governance, and Community Rewards. Furthermore, Pangea will offer a Grant Program for creators as well as an In-Kind Contribution program for landholders post Public Sale. These will act as match-making mechanisms to pair up existing land holders with creators to put opportunities in front of creators, build out our community's land holdings, and level up the Metaverse. More information regarding these programs will be released following the completion of the Allowlist and Public Sales.

PNGA Token Distribution

All token distribution models have been considered in order to structure incentives towards the best interests of the DAO. Please see below for an overview and detailed breakdown of the distributions, vesting and emissions schedules.

Distribution & Vesting Overview

Unlocks refer to the timeframe over which tokens will become available to be distributed by the DAO while vesting refers to the process of distributing purchased or earned tokens within a given timeframe.

More supply will be locked up than indicated in the emissions schedule, as time-locked staking rewards have an additional 6 month linear vest on bonus rewards. We have chosen to be conservative in the emission schedule to build trust.
More supply will be locked up than indicated in the emissions schedule, as time-locked staking rewards have an additional 6 month linear vest on bonus rewards. We have chosen to be conservative in the emission schedule to build trust.

Token Distribution

Vesting Schedule

Details on Use of Funds

  • Treasury funds will be at the disposal of the DAO’s participants to be deployed at the discretion of the DAO with the goal of generating revenue for Pangea. Examples that will be considered by the community may include buying Metaverse land, building on Metaverse land, or monetizing Metaverse land through rentals, fractionalization, collateralization, and more! Treasury funds may also be used to establish partnerships with other projects or used for strategic DAO investments and initiatives. Treasury funds will also include $PNGA, of which 20% will be unlocked immediately post TGE, and the rest vested linearly over 36 months. More info regarding guardrails for how these tokens may be used, what conditions need to be met before they can be deployed, and the mechanisms around how these funds will be deployed will be coming in another Mirror article. Pangea will also have transparent budgets for ongoing initiatives like our Grants Program for Creators and In-Kind Land Contributions that don’t make sense to vote on and approve on a frequent basis. This budget will be clearly established, will require a community vote to change, and all unused tokens will be reverted to the treasury.
  • Governance/Community funds will be distributed at the end of each epoch to active participants in management of different aspects of Pangea. More details on Governance mining and Community Incentives will be announced in a forthcoming Mirror article.
  • Public Sale funds will initially be deployed in accordance with Pangea’s Investment Thesis, but the community will guide Pangea’s strategy and land holdings by regularly evaluating and updating thesis through monthly reviews and community calls to reflect any adjustments in Pangea’s views.
  • Team/Advisors funds have the longest cliff and vesting period, and may be strategically allocated to any advisors and the most valuable DAO contributors at any time.
  • Liquidity Mining funds will be used to establish robust liquidity on primary listing venues by incentivizing liquidity providers, as well as rewarding stakers of the PNGA token. More details on Liquidity and Staking will be published in this Mirror article.
  • Early Contributor Incentives will be issued to those who contribute to the project before the implementation of the governance mining program to immediately reward contributors and core team as Pangea begins the journey towards true decentralization. Any tokens that are not issued will be reverted to the Governance/Community Incentives allocation.
  • Presale Allowlist funds will be used almost entirely for the initial liquidity necessary for public launch while the remaining allocation will be directed for launch expenses aimed to accelerate the growth of Pangea.

Make sure to follow our Twitter and engage with our Discord to stay up to date with all the opportunities to get on the Presale Allowlist. Also, see the roadmap on our website to understand our plans following the token launch. Stay tuned for more updates to come as we rapidly approach our Presale!


Website: https://pangeadao.org
Twitter: https://twitter.com/pangeadao
Discord: https://discord.gg/5hFdFJ5nqY

Disclaimer
The above information does not provide any advice, representation, warranty, certification, guarantee or promise relating to $PNGA tokens or any uses thereof, nor does it provides an offer or agreement to enter into any transaction. Acquiring/holding/owning/using $PNGA and tokens does not provide/guarantee you or anybody else dividends or any kind of returns. Acquiring $PNGA tokens does not provide you with any rights in any jurisdiction. Pangea shall not be liable to you or anybody else for any damage or(and) losses arising out of or in any connections with $PNGA tokens. If you do not agree with any part of this disclaimer please consider leaving this website and never acquire/hold/own/use $PNGA tokens. Any person considering acquiring $PNGA should consider seeking independent financial advice or other professional advice. Please do not make your financial or other decisions based on the information shared above. Use it solely at your own risk. None of the information is financial advice, so please consider your actions very carefully.

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