By a unanimous vote of the core team, the Minnow Support Project has approved the following white paper to be published to the HIVE Blockchain describing changes to PAL, which is a Hive-Engine token to be powered by scotbot and seen in a Nitrous instance through https://www.palnet.io.
Over the last 2 years we have seen a lot of changes in our ecosystem and in crypto as a whole, and during that time PAL has been quietly accumulating in the hands of those who saw a future in the project. Getting a fair distribution out while also staying true to our core mission of helping the little guy has been tough to balance, but after years of claimdrops, airdrops, post rewards, mining, Discord rewards, and prizes, we finally feel that the main distribution phase of this project is now complete.
As such, we are updating the PAL whitepaper to reflect new changes in the way inflation rewards are programatically payed out going forward.
The Minnow Support Project is updating the inflation metrics of the token called PAL. These changes will radically alter the way the token is distributed to users.
Current Distribution of PAL
- There were only ~7.7M tokens initially minted and distributed.
- 883,066 PAL went to the Minnowsupport account
- 60,000 went to each moderator/team member
- Over 4 million were given out in an claimdrop to a white list of 16000 people
- Another ~1.2 million were given out during a series of 9 airdrops proportional to PAL stake
- Tons more given out for PoB, PoI, and mining over ~19 months
900k PAL in total was distributed among the core team.
On Going Distribution Changes
All financial systems relying on currency require faucets for the currency as well as sinks. A faucet is how the currency enters the system. A sink is how it is removed from the system. Going forward, PAL will have 3 primary faucets that stem from token inflation: Proof of Brain, Staking, and Mining.
Overall Inflation PAL will be set at 5%.
Initial PAL 7.7M
Initial annual inflation 385,000
Staking 30% of the inflation will be distributed to token holders who have staked their coins.
Proof of Brain Proof of Brain and rewards voting (author and curator rewards) on chain have been reduced to 5%. You can still earn PAL by including the
palnet tag on your posts, and curating the tag, but it will be significantly less than before.
Proof of Moderation Similar to how the HIVE blockchain provides 10% of the inflation to witnesses; 5% of annual inflation goes to @msp-finance for administrative tasks and management and to cover network expenses.
Proof of Mining 60% of the inflation can be mined. To mine the token purchase and stake PAL Miners (PALM) and PAL MEGA MINERS (PALMM). PALM mines at a rate of 1X, and PALMM mines at a rate of 4X. PALM and PALMM are available on hive-engine.com.
7 day payout windows
unstaking occurs in 28 days in 4 installments
Figures and variables for the nerds out there:
Reward curve is just slightly superlinear to encourage keeping PalPower on one account rather than spread out.
Author reward is 50:50.
Cashout window is a 7 day payout like HIVE.
There is a downvote pool. Here you get 1 free downvote a day.
Downvoting power goes from 0-100 in 5 days like upvote power refills on HIVE.
To get a vote which receives PAL the post has to include palnet as a tag
The inflation rewards shrink every year by 1% (faster than HIVE, but will change to 0% shrinking by the time it hits 4% annual inflation ie inflation won't go smaller than 4%).
Voting calculation works like HIVE.
You get 10 votes a day similiar to HIVE.
Your voting power recharges completely from zero over 5 days (20% per day).
60% of inflation are available from mining.
Mining rewards are once an hour. 10 separate distributions are made every hour to accounts that have staked PALM and/or PALMM.
The PAL token provides no income or profit sharing from any account that the Minnow Support Project manages.
The Minnow Support Project is offering the token on an "as is" basis and provides no guarantee that additional work or effort will be made other than supporting the existing community with the existing tools.
While it is possible, especially while testing the accurate price of the PAL token that prices may fluctuate in the market the Minnow Support Project makes no claim that the token prices will rise in the future beyond the initial lauch (or the initial discounts) listed above.
We are not a business nor intend to be one.
The Minnow Support Project will put the raised HIVE into HIVE Power. The primary use of the HIVE power is to ensure the long term existence of the network and pay server costs and administrative costs. PAL on @minnowsupport will not be used to pay for development of the network.
The Minnow Support Project warns that there is long term inflation of the asset built into the design of the asset.