In early October, holders of the Polyient Games Founder’s Key (PGFK) received a 1:1 reward of Polyient Games Governance Token (PGT).
PGT is the main voting currency for the Ethereum-based Polyient Games DAO (PG DAO), a decentralized organization that is tasked with decision making related to the protocols within our Ecosystem.
The initial iteration of the Polyient Games Ecosystem governance is now live with a mechanism that allows both PGT and Polyient DEX PGT liquidity providers (PGLP holders) to vote on proposals put forth by both the community and the core Polyient team.
Currently, these proposals are largely centered around new token additions to the Polyient DEX, an integral decision to make as new community-voted token pairs receive liquidity backing from Polyient and its decentralized grouping of investment partners.
As we continue to build towards a robust, fully decentralized Ecosystem model, we will launch the PG DAO, which will be tasked with critical decision making related to both core and third-party protocols supported within the Ecosystem. These decisions will span everything from fee structures and yield parameters to grant distributions and even acceptance into the PG Ecosystem.
The introduction of the PG DAO is timely, as we are currently seeing a strong shift in the industry towards more substantial decentralization. With leading examples like Maker and Compound, it’s becoming increasingly clear that protocol governance will be a major point of innovation moving forward.
Additionally, the technical foundation for DAOs is improving rapidly, with groups like Aragon enabling a multitude of blockchain projects to leverage decentralized decision making to guide their development.
Given the immense importance of this decentralized governing body for the long-term growth of the Polyient Games Ecosystem, we will be using established technical infrastructure and will focus on facilitating the creation of a massive working treasury to accomplish the following:
- Fuel liquidity within the Polyient Games Ecosystem across all supported protocols and applications
- Incentivize PGT governance participation to assure active and thoughtful decision making
Sources of Treasury Growth
As the Polyient Games Ecosystem is built around an ever-growing aggregation of decentralized protocols, there are ample opportunities to extract fees for the PG DAO treasury without placing too much burden on any single protocol.
These fees, which will be voted on by PGT holders within bounded parameters, will largely be in the form of Ether (ETH). As the Polyient Games Ecosystem expands into adjacent layer-1s and layer-2s, these fees will become more blended. To that point, Polyient Games is currently developing a unification layer to enable this cross-chain activity, fulfilling our vision of a chain-agnostic Ecosystem designed to drive forward the NFT asset class.
The PG DAO Treasury will also support the storage of NFT asset class and this storage will be highly intertwined with PGFK rewards, as well as the Particle Bridge. Our vision is for the PG DAO Treasury to become the largest holder of valuable NFTs, across artistic, cultural, and finance verticals, opening the door for a suite of DeFi and mainstream use cases.
Additionally, as but one player in the Polyient Games Ecosystem, the Polyient organization will be strategically adding to the PG DAO treasury via both direct and indirect methods. This includes our activities as a network validator across leading blockchains and layer-2s, including Matic Network (MATIC). This methodology is not limited to Polyient and we welcome all validators that are proponents of the PG Ecosystem to adopt this system.
Polyient plans to kickstart the DAO treasury and begin integrating fees into specific protocols in Q1 2021.
Since the beginning, Polyient Games has been focused on bringing liquidity to the non-fungible token (NFT) market through a number of unique initiatives and technical innovations. This is a massive undertaking, as the NFT asset class has the potential to reach valuations far higher than the current utility token market.
Ultimately, we see the PG DAO Treasury as the focal point for the long-term growth and adoption of the NFT asset class and will be tasking the DAO with the responsibility of strategically deploying liquidity across the PG Ecosystem at both the application and protocol layers.
For a quick example, PG DAO members will be responsible for launching new swap markets on the Polyient DEX and seeding those markets with liquidity. Polyient and other independent bodies may agree or disagree with that decision making but will look to ultimately support the growth of the ecosystem with add-on liquidity where needed.
On the application level, we see the PG DAO as being the filter layer for new additions to the Polyient Games Ecosystem and will be tasked with the strategic deployment of grant capital to promising projects.
Taken together, the PG DAO will leverage its ever-growing treasury to re-invest into the PG Ecosystem to sustain the growth and excitement around the NFT asset class.
Incentivizing PGT Governance Participation
For all of this to function by design, we must incentivize governance participation for the entire lifecycle of the Polyient Games Ecosystem.
Towards this end, we will be proposing a lock-up system to PGT holders that will be required for PGTs to be eligible in voting. This lock-up system draws upon an analogy from decentralized networks where validators must have skin-in-the-game to participate at that level.
In return for this lock-up, which we see as an important ingredient to remove transient decision making and reduce attack vectors, PGT holders will be able to stake their tokens in return for a subset of the Treasury. We will unveil the full technical details associated with this mechanism closer to the launch of the PG DAO, but we can note that we see the Polyient DEX as an important relay in this cascade.
Note: Given that this is a decision that the decentralized PGT governance body must make, there will be a core proposal submitted following the launch of the PG DAO to launch this plan. While Polyient is clearly in favor of it, our weight in governance decision making is already far lower than the larger community as we aimed from the beginning to create a more equitable system.
We look forward to community dialogue regarding this potential path forward and will continue to iterate on concepts prior to making the full proposal.
We would also like to highlight that the PGT governance is but one initiative currently ongoing within the PG Ecosystem and we are building everything with balance in mind. That being said, we are very excited to bring forward the PGFK-centric innovations that we have planned, starting with the upcoming Particle Bridge launch in the coming weeks.
About Polyient Games
Polyient Games, a subsidiary of investment group Polyient, is a unique investment ecosystem focused on the NFT and decentralized finance (DeFi) markets. Polyient’s portfolio includes leading NFT startups such as Nonfungible.com, Blockade Games, and Cargo.