Statement and Update from Terra World on Pylon Pools for TWD
There has been some recent community sentiment and controversy against Pylon Pools for TWD. We would like to take this time to address some of those concerns and provide more perspective from our team.
As one of the largest beneficiaries of the Pylon Pools, we feel inclined to make a statement on why we strongly believe that adding the feature of withdrawals goes against the ethos of lossless fundraising for early-stage projects and share our current state of project development.
A. On Pylon Pools and the terms and conditions for lossless fundraising
We believe that allowing users to withdraw UST would be a violation of the terms and conditions laid out in the initial expectations for engaging with the Pylon Pools for TWD. By virtue of depositing into a Pylon Pool, users sign onto a long-term commitment: to lock up their principal for an extended duration of time in return for project tokens.
In the early days of the Pylon Pool when the Pylon Pools are undersubscribed, users may receive an overabundance of APR that is above and beyond Anchor’s 20% savings rate, while later down the line as more users make deposits, the APR may decline. Moreover, based on market conditions that influence the price of the token and as the project makes updates and developments to add value to the token, token price (and thus APR) is also subject to change.
It’s not possible for token prices to always go up, nor for the project team to maintain Pylon Pool APRs that are always above and beyond the Anchor rate. All the project team can do is to focus on building new features and platforms, while users are able to make strategic capital preserving investments at no loss of principal. Pylon Pools allows early-stage projects like Terra World to bootstrap our project vision and work towards creating that into reality.
As mentioned by a user in reply to the thread on whether withdrawals from Pylon Pools should be allowed, we believe that having the option to simply withdraw/redelegate your commitment creates bad precedent, as depositors can invest into any project with less confidence, conviction, and DD, but only drop by to quickly farm and dump token rewards. Withdrawals should not become scapegoats for “their token is not performing well in the market.”
For projects like Terra World that are positioned for the long-run and require an extensive amount of development resources, we think that allowing withdrawals will attract more projects that are focused on shipping quick items with a narrower vision to please the community in the short-term rather than building long lasting products.
These are all conditions and expectations that are fully laid out in the beginning and that users sign onto when depositing into Pylon Pools to begin with.
B. On the latest updates and developments from Terra World
We would like to share some development updates on our end to restore confidence for many of the community members who don’t feel that we’ve shown meaningful progress on our project.
To note once again, Terra World is a 3D gamified metaverse platform. Unlike other DeFi protocols that consist of a set of smart contracts packaged in convenient front-end interfaces which allows them to ship their final products relatively faster, Terra World requires extensive effort across blockchain development, 3D animation, gaming design and production.
Currently, we have recruited a 30+ person strong team of smart contract developers, game engineers, and designers that are working hard to ship our vision.
Especially when our team has planned out our development with the expected cash-flow from Pylon Pools, the proposal to allow full withdrawals from the current Pylon Pools for TWD will further inhibit our development roadmap for delivering our open metaverse platform.
We understand community concerns around roadmap delays but at the same time want to build and deliver the best possible version of our project. We plan to give users access to the alpha version of Terra World as a metaverse for work including a live webcam service within the first quarter of 2022.
We have only postponed the preview of the metaverse for the community, but internally, we have prepared various contract follow-ups. We have created two separate Terra World NFT trading platforms, TWD Factory and Art Hall for our ecosystem with an implemented burn system. Our newly added Terra Power Tier System supports users who contribute to the Terra World ecosystem extended discounts and advantages for allocations with an anti-bot mechanism during the minting process. We have prepared more Terra Power Tier benefits for the future. In addition, we have built a space in the metaverse to allow multiple access and is capable of voice and camera features, rather than having simple text chats. Terra World Art Hall is also implemented inside the metaverse for displaying and trading NFTs.
Currently, our focus of the internal alpha testing is the usage of the Terra Wallet inside the metaverse and upgrading the overall design quality. When both mentioned parts are finalized, we will release the in-game video and open the early alpha access. Here is a preview of the Terra World metaverse. We will share more of our progress with the community in the future.
All preparations for the metaverse will eventually benefit the TWD token. We are certain that the TWD ecosystem is solid. After a certain period of downward pressure from the Pylon Pool TWD token release, TWD will be strong and show good results for TWD supporters when inflation leads to deflation in the Terra World ecosystem.
We hope you consider our angle on this matter, and we thank everyone for their support.