On October 2, donations closed for Panvala’s latest round of donation matching on Gitcoin Grants. This was Panvala’s biggest quarter ever! The Panvala League’s communities brought in 133,486.52 PAN ($14,757.34) of donations. Panvala uses those donations to allocate 75% of the quarterly inflation from Panvala’s treasury between the ten Panvala League communities. This quarter’s 1,369,935 PAN was worth $151,450 at the close of donations, so the Panvala League’s communities were matched at an average of 10.26x. Donations increased by 48% over last quarter, and the value allocated by the Panvala League tripled since last quarter!
Panvala League Scoreboard
Panvala is the sustainable treasury for communities to share. We don’t share Panvala by agreeing on everything or by letting a majority decide. Instead, we use the Panvala League to distribute power to you and your community. Here’s how it works:
- Communities apply for admission to the Panvala League, and the existing communities admit or reject new applicants.
- The communities in the League stake PAN tokens to earn donation matching capacity from Panvala’s inflation.
- Once they have capacity, they use their capacity by bringing in donations for the treasury to match using quadratic funding. Quadratic funding rewards communities based on both the size of donations and the number of people who donated.
Commons Stack brought in the most donated PAN from the most people.
Commons Stack shot to the top of the scoreboard by excelling at both aspects of quadratic funding: they brought in the most donated PAN from the most people to earn an estimated 684,539 PAN (~$75,677) on the preliminary scoreboard. That’s 19.93 times the donations they brought in! KERNEL, one of the six new Panvala League communities this quarter, is currently second on the scoreboard with 123,965 PAN (~$13,704) in estimated funding for a multiplier of 9.75x.
We’re also very excited to see how WhalerDAO’s admission to the Panvala League has played out. They applied for admission after the donation matching round had already started, and the Panvala League communities decided to expedite their admission during the round. Even with a late start, their donations were matched at 5.71x, to earn an estimated 12,791 PAN (~$1,434) from this quarter’s inflation.
Outside of the Panvala League, Panvala will also match all other donations made with PAN on Gitcoin Grants at 2x this quarter. There were 24,720.44 PAN donated outside of the Panvala League, and those grants will receive an additional 24,720.44 PAN. Over time, we plan to phase out this matching program. We encourage projects that are benefiting from this program to join the Panvala League as an independent community, or to seek support from an existing Panvala League community.
Stake PAN for Your Community
These results are preliminary because you still have time to stake for your community and earn more donation matching capacity until October 16 at 2 pm EDT. So far, communities have staked a total of 5,823,464 PAN from the current circulating supply of 46,913,127 PAN. The goal is for each Panvala League community to own the same share of the staked PAN as their share of the quarterly budget, so the League’s rules reward communities who achieve that goal. KERNEL, for instance, is within their capacity: they’ve staked 10.71% of the staked PAN, more than the 7.53% of the donations they brought in using quadratic funding. Since they’re within their capacity, they’ve earned the highest possible funding for the donations they brought in.
MetaCartel, on the other hand, was so successful in bringing in donations that they exceeded their capacity! They brought in 10.99% of donations with quadratic funding, but only own 2.44% of the staked PAN. Panvala is inspired by cooperatives: it’s more about how much you use than how much you own, so the rules allow MetaCartel to earn 8.25% of the available funding even though they only own 2.44%. However, if they staked more PAN to match their share of the donations, their funding could increase by over $5000.
Communities that have exceeded their capacity have until October 16 at 2 pm EDT to stake more PAN to earn more donation matching capacity. The holding period runs from October 16 to October 30, then the final scoreboard will be calculated using the minimum PAN balance for each staked account during the holding period. Panvala’s inflation will be released on October 30, and will be distributed to communities within one week.
How Panvala Works
Meta Gamma Delta’s funding comes from inflation, not from the 194,833 PAN they have staked to earn donation matching capacity.
Panvala’s matching funds don’t come from a foundation or wealthy benefactors. Participating in Panvala allows communities to create their own matching funds. Panvala’s economics are modeled on Bitcoin, which funds the network using inflationary block rewards. When you hold BTC, you’re opting into a system where you know your holdings will be diluted up to the maximum supply of 21 million BTC to fund block rewards for miners. Similarly, Panvala’s stakers have opted into a system where they will be diluted up to a maximum supply of 100 million PAN, and the Panvala League’s communities allocate that inflation themselves.
Over time, Panvala will approach its maximum supply, and the inflation subsidies will decrease. Our hypothesis is that we could have a decade or two of healthy inflation subsidies before they taper off. That’s why Panvala doesn’t just pursue inflation subsidies for communities: we pursue all possible subsidies for communities. As the inflation subsidies taper off, we aim to build up corporate sponsorships to keep funding flowing to Panvala League communities. That’s what makes Panvala the sustainable treasury for communities to share: our approach can keep subsidies flowing in perpetuity.
We want you and your community to join Panvala! We believe that Panvala’s treasury gets stronger when we share it, so we aim to share it with as many communities as possible. The Panvala League has ten communities today, and we’re aiming for thousands. Head to panvala.com/join today to get started. Our next orientation session is on Tuesday, October 20 at 10 am EDT, and we’d love to see you there!