Stake PAN for Your Community

Panvala aims to generalize the economics that Bitcoin uses to subsidize its security. Bitcoin issues new BTC to fund the block reward, which dilutes existing BTC holders. Panvala issues new PAN to subsidize our communities, which dilutes existing PAN holders. Last quarter, we used 1.5M PAN of the 1.9M PAN released by Panvala to subsidize donations on Gitcoin Grants made with PAN. Donors gave 115,755 PAN to over 100 different projects. For each PAN token donated on Gitcoin Grants, projects received an average of 12.9 PAN—their donations were matched at 12.9x! For comparison, Bitcoin has been matching at about 60x recently: for each BTC spent on transaction fees in Bitcoin, miners receive about 60 BTC in block rewards. To get caught up on how Panvala works, here’s a 20 minute presentation from our latest orientation session.

Last quarter, we ran one big matching budget for all projects on Gitcoin Grants. Going forward, we want to put communities in charge of their share of Panvala’s matching budget. Instead of matching every project on Gitcoin, communities can choose which projects they want to match with their own matching budget. Communities earn their matching budget by staking PAN tokens together in a staking cluster for their community. The goal of each staking cluster is to get as many donations as possible, and to get more community members to stake tokens with your cluster so it doesn’t exceed its capacity.

For next quarter, each community will decide which projects they want to match donations for on Gitcoin Grants. The more donations those projects earn in PAN, the larger the matching budget for that community’s staking cluster. Communities split Panvala’s matching budget based on the donations that each community brings in, but it becomes harder to earn more matching when your community exceeds its capacity. Your cluster’s capacity is determined by the fraction of total staked tokens that are in your cluster. It’s always good to get as many donations as you can, but once your community starts exceeding its capacity, you want to get more stakers to support your community as well.

For example, if your cluster has 10% of the staked tokens and your community has 5% of the donations, you’re within your capacity! You’ll get fully matched at the highest available multiplier (12.9x for last quarter).

However, if your cluster has 10% of the staked tokens but your community has 15% of the donations, you’ve exceeded your capacity. You’ll be fully matched for the first 10%, but the more you exceed your capacity, the harder it is to earn more tokens for your matching budget. Your budget always increases with more donations, but your multiplier will end up lower than the communities that didn’t exceed their capacity.

In Panvala, the hodlers are the philanthropists who match your donations by diluting their holdings each quarter. For your community’s staking cluster to grow, it needs more hodlers. There are two ways to grow your cluster: get more community members to stake PAN in your cluster, and get the projects your support to keep their PAN staked in your cluster. Tokens that projects receive from your matching cluster are automatically staked to your cluster. Some of your grantees will sell their PAN to pay their bills, which will reduce your cluster’s capacity. That’s totally fine! Some grantees will hold on to their tokens, which grows your cluster.

Panvala is designed for social decision-making off chain, and our staking system works the same way. Staked tokens remain in your control! You just sign a message with information about the cluster you’re staking in, and we add you to a spreadsheet. The matching budget comes from Panvala’s token supply, not your staked tokens. Communities can bring their own governance process to decide which projects to match. The contact for each staking cluster relays the community’s decision to the Panvala Caucus so we can include it in our recommendations on chain.

Staking clusters are started by a contact and an alternate contact who stake the first tokens in the cluster. So far, four staking clusters have been established:

  • Commons Stack
    • Contact: Griff Green
    • Alternate contact: Lorelei Loie
  • Hashing It Out
    • Contact: Corey Petty
    • Alternate contact: John Mardlin
  • DappNode
    • Contact: Alex Viñas
    • Alternate contact: Jordi Morris
  • MetaCartel
    • Contact: Eric Arsenault
    • Alternate contact: Ven Gist
  • DXdao
    • Contact: Sky Minert
    • Alternate contact: Matthew McIlhenny

Interested in starting a staking cluster for your community, or staking some PAN in your community’s existing cluster? Send an email to to get started.


Do contributors have to do something to explicitly join our cluster before the grants process starts, or is it just any project they contribute to with PAN using the right hashtag?

Good question! Donors don’t have to explicitly join a cluster, they just have to tag their donations with the hashtag of a cluster. Donors are both earning matching for their donations as well as growing the cluster they donate to, so they want to pick the cluster they want to grow.

Not every Gitcoin Grant will be eligible for matching. The clusters will whitelist the projects that are eligible for matching from their cluster. For the most barebones solution possible, we’ll just create a forum post with links to the eligible projects for each cluster, and communities will tweet about the projects that donors should support just like they already do.

Since it’s not an integrated experience yet, we expect that there will be some inconsistencies in what donors tag. We’ll do some manual work to make sure untagged donations get matched from the cluster we think the donor supports, and that tagged donations toward projects that the cluster hasn’t whitelisted will be reassigned to a cluster that is actually matching that project.