Proposal: On Pylon Acquiring Glow Yield via Token Merger

Hey everyone! This is Woojin, founder of Pylon Protocol.

After extensive deliberation with all parties involved over the past several weeks, we are enthusiastic to propose a potential acquisition: for Pylon Protocol to take over Glow Yield, including its development team and forthcoming product lines.

Upon passing community due diligence in the Pylon Forum, this proposal will go directly to voting on the Pylon WebApp to ultimately carry out the first token merger in Terra’s history.

At the highest level, this proposal aims to onboard Glow’s entire development team onto Pylon in order to help scale management and operations, launch new yield-based dApps, revamp ux/ui for existing interfaces, and ultimately benefit MINE stakers.

Vision Alignment

1.

The trajectory for Pylon as outlined in the original litepaper “Introducing Pylon Protocol” was to build “a suite of savings and payments products” on top of yield redirection and principal protected deposits, spanning deposit-based subscriptions and payments, lossless lotteries, charitable fundraising, NFT rentals, and artist patronage.

With an outburst of projects launching on Terra over the past year, most of Pylon’s business development focus has been glued to Pylon Gateway, which since its inception has grown to become the leading project launchpad on Terra with over $300M in TVL.

It’s important to note, however, that the platform “Pylon Gateway” was created as the proof of concept for platforms integrating yield: the first of many more products we intended to build. We believe that it’s now time to take up that initial vision beyond the launchpad.

2.

Positioned around a complimentary thesis for bringing about the mainstream adoption of UST through yield-based dapps, Glow Yield emerged as another project in the Terra ecosystem with a focus on commercializing programmable yield with easy-to-use applications.

The Glow development team consists of a venture studio that houses 52 full-time designers and developers with a 7-year track record of incubating various web2 and crypto products, including social media related apps (B2C at >$10MM ARR), multi-chain wallets, a decentralized AI artist, and exchange infrastructure with billions in volume.

There are currently two central applications to Glow Yield. The first application which has already launched, Glow Lotto, provides a stable savings account linked to a no-loss lottery wherein depositors receive lottery tickets proportionally to the size of one’s deposit.

The second platform, Glow Creators (awaiting launch post-acquisition and rebranding under Pylon), aims to create rich creator-to-fan experiences that redefine membership and loyalty rewards through yield-based patronage pools. Innovating at the frontier of Terra’s web3 creator economy, Glow Creators has already signed notable personalities to launch their own NFT collections and no-loss pools, including major TikToker influencers and K-pop artists.

3.

Pylon laid the groundwork for other yield-based projects on Terra to integrate the Anchor Earn rate in other means of value exchange via the novel paradigm of ‘yield redirection,’ enabling products to take advantage of stablecoin deposits for no-loss and perpetual payments.

At the same time, Glow has introduced shiny product wrappers to DeFi, launching socially commercial applications to make DeFi accessible to the everyday retail consumer.

This acquisition is founded on a history of ongoing close collaborations and significant roadmap convergence between Pylon and Glow. The combined effort of both development teams and communities will be stronger together in our supercharged vision to build out Terra’s ecosystem of fintech products leveraging programmable yields and decentralized money.

The ultimate vision forward for Pylon is to fill all the gaps and become a full-ranging suite of platforms and services built around yield redirection, all the way from expansion as a project launchpad to use cases like crowdfunding and patronage, recurring subscription payments, lending and borrowing backed by key money deposits, and many more.

How the Pylon-Glow merger benefits MINE stakers

The objective of this acquisition is to ultimately enhance value for MINE governance stakers by getting access to more opportunities for growth into different segments of the retail market and to deepen yield redirection sources with the potential of cross-chain integrations.

In order for Pylon to live up to its potential beyond its current positioning as a project launchpad, we believe that acquiring Glow will expand development capacity (i.e. for expedited unit testing, auditing, debugging) and product range (i.e. for advancing yield-based products at scale).

The present bottleneck to Pylon’s growth has been the team’s limited development capacity for focusing on new applications beyond the maintenance and growth of Pylon Gateway. This will be addressed through Glow’s ready-made studio of 52 designers and developers. More hands on deck to deal with day-to-day tasks will add to Pylon’s ability to build and innovate upon product features faster than ever.

As part of acquisition, the Glow team will be focusing on rebranding all existing and planned Glow products and shipping new dapps under the umbrella of Pylon’s ecosystem.

All of the current Glow dapps will be rebranded under Pylon, for instance, Glow Lotto to become Pylon Savings (or Pylon Harbor) with added features of dollar-cost averaging, and Glow Creators to become Pylon Creators (or the like), providing diversified sources for treasury accrual and buybacks for MINE while also covering a wider range of other platform-specific benefits for MINE stakers; these benefits may include, for instance, automatic entry into savings lotteries and/or exclusive tiers of membership on the influencer patronage platform.

All around, increased TVL growth will contribute to greater treasury accrual, resulting in more capital for MINE buybacks and community-building efforts, provided that every platform integrated under Pylon will have a portion of its yields stack up in the Pylon Treasury. This all translates to additional benefits for MINE stakers.

New upcoming dapps with Pylon branding will aim to foster mainstream adoption of UST with attractive “no-loss” products across various sectors, fast-track integrations with Pylon’s yield redirection SDK, potentially look to cross-chain solutions for yield source diversification, and amplify Pylon’s value proposition of capital preservation via deposits.

Other token mechanism features developed by the Glow team, including the vote-escrowed token implementation of the CW900-lv Cosmwasm standard which would calculate and add ve-boost multipliers, could be implemented to strengthen MINE tokenomics.

Incentive Alignment

With the fixed token swap structure employed in the FEI-RARI merger as precedent, we propose to absorb the circulating GLOW token supply with a GLOW-to-MINE fixed swap, in order to structure long-term incentive arrangements amid Pylon and Glow communities.

This one-way fixed rate swap proposes for users to be able to swap GLOW tokens in exchange for MINE at the fixed rate of <1 GLOW = 1.65 MINE>, roughly based on time-weighted average price calculations for both tokens.

282M MINE tokens are requested for this fixed swap. Currently circulating GLOW tokens, LP/staking reward emissions, and GLOW tokens that have yet to be vested and claimed from the Pylon Pools for GLOW fall under this category. The Glow team will work to curb further GLOW token emissions as much as possible.

GLOW token holders can decide either to swap their tokens back to UST at variable market prices or swap GLOW to MINE at the fixed rate above. The GLOW-to-MINE swap will open as soon as the smart contracts for the swap are carefully audited.

In exchange for burning all outstanding GLOW tokens allocated to the team, ecosystem fund, and warchest in the GLOW tokenomics, we plan to align incentives by providing the Glow development team and its line of products with 650M MINE tokens vested over 3 years.

MINE tokens for this acquisition swap and Glow team reserve will be drawn from the ”Depositor Incentives” allocation, which is set aside in the Pylon tokenomics for “rewarding ecosystem participation,” all-encompassing of project partnerships and SDK integrations. There are 4000M MINE tokens in total allocated for “Depositor Incentives.”

In sum, this proposal requests to draw 932M MINE tokens from “Depositor Incentives” to accommodate smooth integration between the respective communities and development teams of Pylon and Glow.

Integration Roadmap

Provided initial reception and feedback on this Pylon Forum post and extended updates, we will post a governance proposal on the Pylon WebApp on whether to proceed with the acquisition of Glow’s products and development team, open to voting by MINE stakers.

Upon the passing of this proposal, both teams will work expeditiously to ensure a smooth transition and onboarding process, including the rebranding of all Glow product lines under the Pylon brand, documentation updates regarding tokenomics and team composition, and the release of the GLOW-to-MINE fixed token swap upon code audits.

This acquisition, if passed, may lead to slight delays on the launches of DP-based funds on Pylon Gateway (incl. “Gateway Fund I”) as well as Glow Creators (to be rebranded and launched as “Pylon Creators”), although we believe that it is essential to set up solid footing for restructuring and priming the development team for Pylon’s success over the long-run.

Next Steps

We’d like to open up this proposal for discussion and hear everyone’s thoughts below. After some initial discussion, we’ll follow up with a governance poll on the Pylon WebApp.

Let’s make Pylon glow again by constructing additional pylons!

23 Likes

Why would we, the Pylon community, be interested in the aquisition? I may have my own bias, but seems a bit onesided in the short-term, this would in practice dillute existing owners of MINE and potentially cause some downwards pressure on the token as we’d be sending into circulation a fair bit of currently locked tokens. Not to mention it will cause delays in what would probably be the most exciting thing to happen to Pylon in the past months.

Glow also seems to have an huge team for the size of the current product, is that the goal of the acquisition? To get the team instead of hiring people to create a competing product?

Also, why is the 650M to be provided to the Glow team? Isn’t the acquisition making the Glow team a part of the Pylon team? Are they to be self-managed/contractors, or will they truly become part of the Pylon team? Could we also get an update on the current Pylon team development funds?

Thanks in advance.

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Interesting. Some likely inflation from releasing the tokens from the fund but that’s just bringing forward the inevitable.
To be honest, I think I’d vote for it just on the possibility that it might elevate the very troubled Pylon development record to something like the standard required.
That said. I wouldn’t have seen Glow as the answer to Pylon’s needs - I sell the tokens I received as Staking airdrops as their current offering doesn’t interest me at all (Lotteries? meh). I would like to understand more about the products that are only briefly touched on here - what sort of no loss products across what sectors?

Separately, the reference “including the vote-escrowed token implementation of the CW900-lv Cosmwasm standard which would calculate and add ve-boost multipliers, could be implemented to strengthen MINE tokenomics”
How does this complement the current Gov proposal re Mineral Grade? Does it potentially supplant that proposal?

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Hey Team, thanks for sharing so much detail

+1 for the Question on the purpose of the 650M (~$19.5M UST) for the Glow team - is this for paying their teams S&W or is this a payout for the founders? If its a payout for the founders how did we derive the valuation? (asking as this will help determine what our future upside / benefit is as mine holders)

Glow lotto isn’t too exciting in terms of a product. Are we expecting much upside from Glow Creators? Great to understand what other products are in the pipeline?

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gm :gem:ers,

I’m Glow|Eric, mainly responsible for the funny tweets at glowyield and Discord.
Also invested in MINE, several pools and obviously Glow :slight_smile:

Happy to answer your questions to my knowledge!

Glow also seems to have an huge team for the size of the current product, is that the goal of the acquisition?

I can answer this one: the core is smaller than 52 people, for example designers etc. work also on all the other projects. I think the intention was to show you guys the available resources!

:sparkles: + :gem: = :handshake:

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So more value overall… but a big dump on token price is also to be expected.

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Dont know actually

Benefits for Mine stakers?

How?

Yes after some 3-4 years minimum

Hundreds milions of new additionally released Mine tokens vesting over 3 years, will make additional selling pressure, which is already very high at moment

Ok, I know, Glow team will work for us, but as sayed, that will cause more delay of GFI release, which is only real thing that will press down of Mine inflation
Everything is already slow down in Pylon building…

Not only that, but many more Mine tokens will be staked, it means “usual” Mine stakers will get less and less airdrops

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I have nothing against Glow or his team, but I find it hard to see Pylon’s interest in this acquisition.
If the goal was to grow the Pylon team to speed up the resolution of bugs, the release of new features and so on then why not simply recruit?

If I remember correctly, Pylon was not originally intended to be a only launchpad but also a recurring payment platform. Unless I missed it, it’s not even mentioned.
This acquisition will also delay the release of GFI, which has been eagerly awaited for a long time now and which is the only solution found to reduce Mine’s supply.

Maybe my vision is biased, but I’m very skeptical about this acquisition.

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It is worth to consider that the products we are building are meant to generate revenue for the protocol :slight_smile:

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If there will be benefits for Mine stakers, like more earns of any kind than its now, and positive price growth of Mine token, then you have my green light.

Lets see how it will goes.

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What projects sir? What are the benefits of the project?

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Pylon and Glow teams,

Please, clarify a few things.

  • There are still no vested GLOW tokens for the Glow team after the GLOW TGE as I understand, right?

  • The swap of 1:1.65 Glow-Mine tokens, will it increase the total MINE emission tokens?

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We have a great knowledge base at https://glowyield.com/ and for in depth glow related questions there’s the discord Glow :slight_smile:

Regarding your other questions: they will be addressed in a centralized FAQ!

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If you want to make an acquire it ll be cool yo know before the composition of the two teams…

The two projects are very différents, i prefer the pooltogether loterie than glow or lotera…
And i am steel waiting more avantage to stak mine like netflix as i had read it at the beginning of the project…

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you have my green light. I just wish that MINE tokens are vested for at the very least 12 months (ideally 18 months) before any sell pressure can happen.

Thanks.

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you definitely have my yes vote for this merger.
Acquisition of people and tech :raised_hands:

However as others have asked, it would be nice to know a bit more about the cohorts brought in from GLOW?

@HanniMou
The interest as I see it is that glow has already developed a lot of things that Pylon set out to do. Rather than building it again the merger brings the technology into the Pylon family.

Recruiting new skilled talent is not easy and it’s someting most tech companies struggle with, so a strategical acquisition of talent that is already familiar with yeild redirection and Terra just makes sense IMO.

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Hi Eric,
you are in the position to show and explain us the benefits or actually the board of Pylon.
We decide based on that information.
They propose and we decide based on that information, this is not DYOR.
Telling everybody check it by yourself does not help as I check the webpage and all I see is glow lottery, that is for me really boring and the rest will follow.

Drop Alpha why it makes sense aside of the general proposal or please give us the questions addressed in a centralized FAQ.

Thanks :slight_smile:

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Hi Limowooj

I would like that the financial statements are released to ensure that we do not acquire a sinking boat or at least the price seems a bit high with if I am not wrong:
650m token x1,65 (ratio glow / pylon Token) x 0,034372 UST (present price) ~36.868.970 UST
That is a hugh amount. Of course now maybe not all are in the circulating supply, still the amount seems quite unreasonable compared to what they delivered.

I would highly appreciate a better economic explanation and valuation of the glow team.
My believe is that they might be over-valued and that would be on the back of US Pylon Holders and supporters.

Thanks for explaining
BR Ale

To add:
image 16.04.2022, 2pm
this is the present ratio → so 1,65 is, as mentioned above overvalued, besides any premium to pay for synergies you might see.
I never saw my shares almost trippling due to another company going to acquire it.

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This proposal makes a lot of sense in that Pylon development has been slow and troubled, so I definitely understand the need to onboard more devs to reach the project goals.

However, I’m not sure about the deal as it currently stands.

As @Ale123 mentions, why would we pay 2-3x to GLOW holders? If this is to reward them the future expected appreciation of the token, then wouldn’t we also expect $MINE to appreciate 2-3x at least? So wouldn’t a closer to 1x swap make more sense in that case? Please explain what justifies enriching GLOW holders to that degree, at MINE holders expense.

The Pylon team has already been allocated 10% of supply for their work on the project. This proposal would basically increase that to 16.5% of supply. It feels excessive to increase developer share of the project by 2/3rds. The Mine community has no say in the development resources, no visibility into their individual compensation. So to pull tokens to pay for development from “Depositor Incentives” instead of the Pylon team share, feels a bit disingenuous. It also fits the 40% for Depositor Incentives being overbroad and way too large. Would anyone have expected these tokens would be used for buyouts?

Finally, we have little detailed information about GLOW financials and roadmap in order to make a decision of this magnitude. So overall I’m happy that Pylon is going to onboard more developers who area already working on highly aligned projects, but the proposal itself seems very costly based on the currently available information.

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When you say

What Glow build that Pylon still not? besides the lottery?

I’m on Glow DOC and there is much luck of information about Glow projects.
Like Glow starters?

Pylon holders want to know what will be with MINE emission, why we are the community need to pay for Pylon-Glow merge? Depositor Incentives are set aside for other reasons than paying millions of dollars for merging teams.
What about millions of $ that Glow made by their IDO? Will it go to Pylons treasure?
What about active pools of Glow on Pylon Gateway?
8.5 million UST deposited 6 million Glow tokens distributed, about 5 more months till first claim possible.

I have much more questions for Pylon and Glow teams about that merge, and the Pylon`s ( limowooj) explanation is very general. We want to see numbers, an updated roadmap or whitepaper, updated tokenomic explanation, detailed explanation about upcoming projects that will follow from this merge.

You see for now, from what Eric said:

it looks like, we - Pylon community, the investors going to pay 30+ million dollars for promises of building revenue in the future, but NO one paying for promises, we want detailed information.

3 Likes