TLDR: Stateless Money and ChainSafe Systems intend to launch an on-chain index token for the Polkadot Ecosystem.
Polkadot, and its cousin network, Kusuma, have seen tremendous attention from builders in the ecosystem, as well as speculators looking to hodl their tokens. Developers have quickly recognized the potential of the ecosystem, and hundreds of projects are currently under development by teams around the globe.
The Polkadot ecosystem appears to be an emerging option for the low-cost and high capacity needs of a global DeFi ecosystem and the decentralized web. Unlike many projects that emerged early in the Ethereum ecosystem, many of the protocols building on Polkadot will be governed independently on-chain, enabling new and exciting possibilities, as well as complexities. One complexity each project will encounter is the management of funds held in their “on-chain” treasury. Holding only a single native asset within a treasury poses significant, however, active management of treasury funds carries significant risk and complexity as well.
While most people (even the professionals) believe they should actively manage their portfolios, investing in an index is the best choice for most investors-- just ask Warren Buffet. Index funds are popular with investors because they enable ownership of a wide variety of assets, providing immediate diversification and lower risk.
Stateless Money believes there is a great opportunity to leverage the Polkadot suite of technologies to build an “on-chain” index token, the Polkadot Index Network Token (PINT). PINT will be governed by ecosystem professionals and enables protocols and people to gain diversified exposure to the top projects in the Polkadot Ecosystem.
A retail investor will likely be attracted to PINT as a straightforward way to gain exposure to the price movements and rewards of the top projects in the Polkadot Ecosystem. The primary beneficiaries of PINT, however, will be for the projects that include assets in the index.
Stateless Money imagines a future where the native governance of each protocol may vote to submit a proposal to PINT governance for inclusion into the index. By contributing a small portion of their native asset treasury (e.g 1%), the project receives PINT in return, enabling diversified exposure to the ecosystem. A similar concept has already been executed in Ethereum’s DeFi space, with Yam Finance acquiring DeFi Pulse Index. This model will position PINT as a treasury reserve asset for protocols that desire diversification without the necessity of themselves actively managing their capital.
An additional benefit for projects within the index is access to the PINT treasury. The PINT treasury is self-sustaining and may be deployed as PINT governance dictates, such as to assist in the financing of a Parachain Lease Offering.
Who is involved in the PINT project?
The PINT project consists of a variety of different Polkadot ecosystem stakeholders that will organize, build, govern, and participate in the index.
- Stateless Money will serve as the organizers of PINT, and help to coordinate, market, maintain software infrastructure (such as test networks), and work to ensure the successful launch of PINT.
- ChainSafe will be the primary development partner for PINT.
The PINT Council
The PINT Council will consist of seven Polkadot Ecosystem experts that govern all aspects of PINT, including the composition of the index and management of the PINT treasury. At launch, the Council will include:
- Graham Tonkin, Co-Founder of Stateless Money
- Ben Perszyk, Head of Portfolio Operations and Polkadot Ecosystem Fund Lead at Polychain Capital
- Xiao Xiao, Investment Manager at HashKey Capital
- Jack Platts, Co-Founder, and CEO of Hypersphere Ventures
- Ruitao Su, Co-Founder, and CEO at Acala & Laminar
- Ben Weiss, Substrate Builders Program, Parity Technologies
- Open seat for an active PINT community member
The Constituent Committee (CC)
The CC will consist of one representative from each project in the index, and retain the power to veto any proposal approved by the PINT Council. Assets included in the PINT index will be formally approved by the governance vote prior to launch. At the time of this proposal, the following projects have given a soft commitment to join the index: Acala, Equilibrium, HydraDX, Litentry, Moonbeam, and Plasm. At launch, each project will submit a proposal to the PINT Council that details the number of tokens they will contribute, as well as the value of those tokens.
Why should StakerDAO fund this?
Many of the assets included in the PINT index will generate cash-flow from staking. Any earnings generated from assets staked within the index will be used to buy back PINT via an Automated Market Maker. PINT governance will determine the distribution of PINT tokens purchased back in this manner. At launch, StakerDAO will receive 10% of any PINT purchased back in this mechanism, while 10% is directed to the PINT treasury, and the remaining 80% is burnt.
By financing the creation of PINT, StakerDAO will gain exposure to the Polkadot ecosystem, and the Staker Community Treasury will benefit from regular cash flow generated from staked assets in the Polkadot ecosystem. This may prove to be a lucrative income stream for StakerDAO to gain long-term sustainability, and enable the Staker community to utilize more capital to deploy as they wish (to buy back and burn STKR, to finance new projects, marketing, etc.).
Roles and Project Milestones
- Develop the pallets and runtime necessary for PINT
- Assist in the deployment and maintenance of a testnet and mainnet an instance of PINT
- Integrate an oracle pallet into the PINT runtime with support for price feed queries
- Integrate of XCMP functionality to support communication with known parachains
Stateless Money will:
- Act as the project owner, and coordinate the various aspects required to launch PINT.
- Operate the necessary infrastructure, and establish relationships with validators.
- Develop and build a front-end of UI required, such as a PINT webpage.
- Facilitate a Slot Auction on the appropriate network if it’s decided as the best deployment option (e.g as opposed to a Parathread or integration on existing Parachain).
- Continue to govern and grow PINT as part of the PINT Council.
Milestone 1: Initial Development (Est. 6 weeks)
- Pallet implementations based on PINT Design Doc produced by ChainSafe
- AssetIndex, SAFTRegistry, Committee, and LocalTreasury
- Unit tests and internal documentation
- Substrate runtime
- Contains the implemented pallets
- Based on the substrate-parachain-template
- Documentation for running and interacting with locally
- Construct Dockerfile for node
- Design and launch supporting marketing materials (website, gitbook, etc.), information pages, and social media presence.
Milestone 2: XCMP-Dependant Implementation (Est. 6 - 8 weeks)
- Additional pallet development
- Implement RemoteAssetManager and RemoteTreasury pallet
- Update existing pallets to be compatible
- Introduce Chainlink oracle pallet and add price feed support in the runtime
- Updated runtime to include new pallets
- Documentation for interactions via the polkadot.js Apps
- Adding/removing assets
- Adding/removing SAFTs
- Submitting and voting on a proposal to the Committee
- Including specific examples for submitting proposals for spending treasury funds, moving assets, and buying-back and burning PINT
- Transfer assets from the Treasury
- Runtime upgrades
- Updated Dockerfile
- Establish relationships with validators
Milestone 3: Join Parachain Testnet & End-to-End Testing (Est. 4 weeks)
- Successful slot proposal on ChaChaCha and/or Rococo
- Establish and execute integration and end-to-end testing plan
- Fix and improve implementation where necessary
- Provide documentation for running a node
Milestone 4: Launch Mainnet (Est. 2 - 4 weeks)
- Bootstrap new mainnet network
- Provide support to validator teams to join the network
- Provide necessary components for joining a relay chain
- Launch PINT as a parathread, or as a parachain on Kusama or Polkadot. Alternatively, integrating the PINT pallet into another parachain will be considered closer to launch if deemed optimal by the PINT stakeholders.
Cost and Payment Terms
|1 - Initial Development||191,952|
|2 - XCMP-Dependant Implementation||135,936|
|3 - Join Parachain Testnet & End-to-End Testing||67,968|
|4 - Launch Mainnet||67,968|
To align incentives for long-term collaboration, we request a total of 261,677 USDC, and 560,736 STKR tokens.
Stateless Money shall custody the funds for the duration of the project, and transfer ChainSafe the required funds ahead of each milestone, excluding the final milestone. Half of the final payment will be held until the successful mainnet launch.
Ongoing Support and Development Costs
The goal of PINT is to be a sustainable DAO that maintains operations off of the cash generated from the assets locked in the index. Future development, maintenance, or new feature additions will likely come directly from the PINT treasury, although there may be unexpected events that may require additional funding from the treasury.
About Stateless Money
Stateless Money is an independent Proof of Stake Validator that operates Polkadot ecosystem validators and collators supported by about $170 million in staked capital.
About ChainSafe Systems
ChainSafe is a global leader in blockchain protocol and infrastructure development for Web 3.0. They contribute to the Ethereum, Polkadot, Filecoin, Cosmos, and other blockchain ecosystems.
PINT homepage: https://polkadotindex.com/
PINT Gitbook: https://docs.polkadotindex.com/
PINT Twitter: https://twitter.com/polkadotindex