Liquidity for pCLNY on Polygon

Community Ideas and Requests
1

Hey Martians :vulcan_salute:

I would like to present a proposal on how we could maintain liquidity for pCLNY and bootstrap the economy on Polygon.

Current stats

  1. Current pCLNY supply 1,716,805 pCLNY (ColonyToken (pCLNY) Token Tracker | PolygonScan) (When 1.1M pCLNY is locked on treasury and liquidity multisigs and ≈ 600k pCLNY In circulation)
  2. NFT Landlords - 447
  3. NFT Lands minted - 3,340

On average

1 Total minted: 1.7 / 3,340 = 508 pCLNY per NFT land
2. In circulation: 600k / 3,340 = 179 pCLNY per NFT land

That means, on average, every landlord produced and owned ≈ 170 pCLNY per one NFT

What we’ve learned

As you might know, when Harmony Colony was released, nearly ≈ $300k in ONE token was injected into initial liquidity together with the liquidity mining program.

Unfortunately or fortunately, the market situation, economy, fear, and greediness did their job, and you can witness now that Harmony Liquidity pools are dried completely. You can witness it on Harmony chain.

We also agree with the feedback that we’ve received from our users that if liquidity is added from any third party, it will lead to the same result with drained pools as it happened on Harmony.

What is the solution

On another side, we start getting requests from landlords that they want to see the liquidity for pCLNY which also makes sense. The Landlords mint pCLNY they want to be able to trade them, increase pCLNY visibility and metrics that will drive more new users into the ecosystem.

Proposal: Positive sum game

As you know, the only NFT landlord can mint pCLNY tokens. We think if everyone Landlord that generates pCLNY tokens contribute % of these tokens to the liquidity pools, we will be able to maintain a positive same system when every landlord provides the same equivalent of their tokens to the liquidity pools.

Providing the same % of pCLNY to the liquidity will allow our community to feel that we are in the same boat and the project can grow and develop only when consensus between, all landlords are reached and bad actors are eliminated from the system (Learn more at Game theory - Wikipedia)

Bad actors

At the same time, we live in the real world, and there will be bad actors in every community. There will be bad actors, and they will try to cheat against the consensus and sell out their pCLNY while good actors will be providing liquidity.

To prevent bad actors from cheating and dropping pCLNY against the reached community consensus we will be able to kick off bad actors from the community (there are several tech solutions that could be implemented on the chain level)

For example, pCLNY minting can be frozen for every wallet that sold out more pCLNY that liquidity was provided by the same actor

Conclusion

Reaching consensus on providing liquidity and on-chain protection against bad actors will allow us to move forward in project development, to experiment with direct democracy and on-chain security against bad actors.

Please raise your voice and let us know what you think about such an idea.

What do you think about the idea of shared liquidity with protection against bad actors ?

  • I like the idea (Share more details on how it will be executed)
  • I don’t like the idea (Let’s try to find another solution)

0 voters

1 Like
2

Have you guys thought about LP pool with fixed time lock, and also incorporating an LP burn for certain items? This works very well with a tri token system

2 Likes
3

I feel like censoring “bad actors” For selling is kind of like the communist party controlling How people conduct, their finances in their way. There must be another way to keep liquidity healthy

8 Likes
4

I only think the idea is good if it is used as a TRANSITIONAL SOLUTION. It is important that sales are not restricted. When the project gains stability, I would unlock all sales again.I also believe that the best solution is to use both pclny and hclny in game as soon as possible. I don’t mean renaming avatars or moving buildings. But something more important.But I think it’s good that the team has chosen this way of asking the community. Instead of making your own decisions again. So we will find the best solution.:+1::+1::+1:

4 Likes
5

Though I am up for this and ready to share percentage that we come to conclusion, the way the proposal is presented it’s geared towards bad actors… rather you can present the proposal as a positive project growth strategy which will help the current land owners support this rather than going to sell their pClny…
I will vote for this sharing and hoping we will get to see more plans for the pClny and the polygon world…

2 Likes
6

Yep, it’s like on-chain censorship for bad actors. Personally, I am against censorship, but you can see what happened with harmony liquidity pools. We put there in liquidity $300k, and all is drained out. I don’t blame anyone, but we have what we have. No liquidity and a lot of complaints.

I think if we can set up a limit, let’s say, if you can sell the only amount you add to the liquidity, it will make sense. We can maintain good liquidity pools. Price will not drop below limits, at the same time, all newly generated demand on pCLNY will increase the price and it’s the opportunity for active trading.

At least this is how it’s structured in my mind. And I am open to discuss for better solutions as well.

7

Tell us more please.

8

Thanks to everyone who had a chance to review a proposal.
We have reviewed your feedback and would like to propose an alternative option.

  1. Kick-start liquidity with $5,000 in MATIC and respective amount in pCLNY (MATIC allocated from creators DAO multisig, pCLNY allocated from Community treasury multisig - voting needed)

  2. Allocate 5% of MATIC proceeds from initial Land NFT claims to the liquidity pool (MATIC - pCLNY). This will ensure stable liquidity pool growth.

  3. Add liquidity mining incentives for users who add pCLNY-MATIC into the pool.

Happy to bring this idea to public on-chain voting via Snapshot

1 Like
9

i think we need to bring to a vote … and see if we can get some other ideas to help the team ! @eugenefinch

10

@7Danos. Makes sense. Plus, we need to ask a permission from you guys to allocate pCLNY from community treasury on Polygon.

1 Like
11

Sushi is alright :wink:

1 Like
12

either is fine with me