1. Problem statement
As we know, there are tons of dApps launching inside/outside Terra protocol, and most of them do their launching in a form of IDO at the launch pad. This is (a kind of) essential thing to get an investment seed for further development of the project, however, we need to admit that many of those projects are issuing protocol tokens in a name of “Governance” token.
I personally think it is a time to stop issuing those new tokens, especially at the time of project launching. Most of them are not prepared for true decentralized governance, and it is truly not easy to implement them at the time of launching.
2. So how?
So we may think about another model of launching on Pylon that only have Pylon pools without providing any token? I think some types of blockchain protocol do not need its own token as a reward, and can utilize UST (or $LUNA token if possible under collaboration with Terra) instead. Governance token itself can be considered to be issued once there is a clear need and the protocol is sufficiently stabilized. But in Pylon pool, for example, snapshot can be taken as a initial contribution, and NFT might be given as a token of such contribution once vesting is successfully done. Users may be able to exchange that NFT with other asset in a NFT marketplace (or not), or get the governance token or other reward from the protocol later. (Pylon NFT pool?)
3. What is the benefit?
This might be helpful for both developers and investors:
- the new protocols since they can be free from designing tokenomics which is usually considered as a sort of ‘prerequisite’ but is not actually. They can be also free from any blame or concern about the token price from their launching, which can allow them more time to work on the protocol itself (which I think is more desirable.)
- investors can get a NFT (which can be cool? ) as a token of initial contribution and can be free from price dumping or short-term speculative power or whatever else. NFT is more neutral to the price itself than reward token (if not created in too high volume), and also can be used as a governance tool.
I did not think that much about this model (so called, Pylon NFT pool), so there can be many fallacy or error in this model. But it would be nice if a discussion related with “reward token”-free launching is made here.
To do that, first thing we need to do is to categorize the characteristic of blockchain protocol that
- does not need its own token as a reward token
- can provide UST (or Luna, ANC, MINE) as a reward in its business model.
Please share your ideas and thoughts here!