Panvala vs. Moloch DAO

From what I can gather, Panvala is similar in structure (if slightly more complex than) Moloch DAO, and has very similar aims of funding Ethereum projects.

Can someone give me the “Explain it like I’m 5” version of what the difference is between Moloch DAO and Panvala?

The most important difference to understand is that Moloch DAO governs a stock of ETH while Panvala governs a flow of ETH. Panvala holds no ETH at all. Instead, we use PAN as targets for a flow of donated ETH to hit. Every organization that endures over time is designed around flows of funds. This design focuses our community on building a flow that can last forever instead of being misled by one time contributions.

Other differences:

  • To drive donations, Moloch probably needs to pay people the way a foundation pays people to bring more donations in the door. Panvala doesn’t need to pay people for this because every PAN holder has an incentive to increase donations. The more demand there is for donations, the more demand their is for the PAN they hold. Instead of a few employees doing this work, Panvala can have thousands or millions of PAN holders doing it instead.
  • Moloch can only spend funds it has raised already. It has spent about $120k so far. Panvala can fund grants using its own limited token supply. It has awarded grants worth about $260k so far, with another $80k+ of grants to be released on November 1. The value of Panvala grants can fluctuate in either direction depending on the demand for donations. (PAN valuations are from the current state of Uniswap.)
  • Moloch is governed by its donors in equal proportion, but Panvala is governed by its token holders. We expect most PAN holders to be donors as well, but separating these roles allows people who want to specialize in allocating grants rather than funding them to do so.
  • In Moloch, when bad decisions are made, you ragequit so Moloch no longer controls your funds. In Panvala, when bad decisions are made, you stop donating. Panvala never controlled your funds in the first place. PAN tokens are effectively targets for future donations to fulfill, so if those targets are poorly placed, they lose their value rapidly as people stop donating.
  • Moloch is governed by a referendum on each proposal. Panvala is governed using slate governance, which allows the token holders to choose any off-chain governance process that suits their needs, and only vote on-chain when something goes wrong.