On Monday, the decentralized autonomous organization Panda DAO made a new proposal to dissolve itself and return assets to investors. According to the seven-point referendum, between 500 million and 700 million PANDA tokens of the 1.292 billion PANDA in circulation would be distributed to investors. Of the remaining, some would be redistributed to liquidity providers. Meanwhile, an estimated 50 million PANDA will be burned, and another 44.56 million PANDA will go towards compensation for eight of the project’s core developers.
Should the referendum succeed and the dissolution process is completed, the Panda development team plans to remove PANDA from Uniswap, publish all open source code of the project, and shut down all social media under the Panda DAO umbrella. As for the reasons for the disbandment, the Panda DAO team wrote:
“Panda DAO has been online for almost a year now. We have managed to circumvent numerous market declines in that time. But the real crisis we faced was dealing with management issues within our DAO.”
A core member, going by the pseudonym ‘Panda’, complained that the team had had a long, hard battle in project development. “Our community wanted more and more reassurance that Panda was moving in the right direction,” he said, “but developers don’t work for free, and [I think] no one understands how to endure a long, painful bear market.”
As told by “Panda”, the internal turmoil within the DAO greatly hampered the efficiency of its operations. After raising 1,900 Ether (ETH) last year at a price of 1 ETH = 500,000 PANDA, the community was conflicted about how best to use the money in the future.
“At that time, the [nonfungible token] The NFT market was on fire. As a result, many of our users wanted us to create Panda NFTs. But after going through the 2017-2018 crypto bear market, we knew the market was showing signs of FOMO. showed [Fear of Missing Out], and it was only a matter of time before there was a crash. That’s why we made the difficult decision to reject the community’s demands for Panda NFTs.”
“Panda” explained that while nonfungible token, or NFT, drops would generate revenue for the community, it would come at the cost of the protocol’s credibility. “In the long run, the risks of the latter would be greater than the former,” he said.
Since then, it seems that there has always been a gap between Panda developers and users. “We had a lot of ideas, but little capital; our users wanted us to develop Panda Apps and even create a venture capital division, but we had to say no to these ideas.”
A buyback proposal was also withdrawn for similar reasons. “In the beginning, we bought back 2 million PANDA tokens,” the core team member wrote. “But many voices in the community wanted me to go through with the buyback, even though it was not in my power to do so. I am just one of many stakeholders charged with managing our treasury.”
As time went on, it became impossible to unite disaffected voices. “One faction wanted developers to focus on low-risk short-term gains, such as token buybacks. Another faction wanted long-term gains, refusing all buybacks, and putting the money in the treasury.”
“Panda” wrote that it took him many “sleepless nights” to come to the decision. Nevertheless, the developer said he has no regrets about issuing the referendum. “We fell back for a lot of achievements, but at least we tried and didn’t throw our community under the bus.” During its one-year run, Panda DAO’s protocol went live and became the largest DAO on the Dework blockchain. In addition, “Panda” says he hopes the decomposition proves that “code is law” in the blockchain space.
“The project succeeded, however briefly, thanks to smart contracts that protect community agreements. We had one for ERC-721, we now have one for the return of PANDA funds, etc. Without smart contracts we would never have been able to to avoid so much turmoil in the market while guaranteeing the security of our users’ money.”
— Panda ( ) (@hellopandadao) September 18, 2022