PineDAO is completely autonomous through decentralized votes conducted amongst vePINE and sbPINE holders.
vePINE and sbPINE are equivalent in value and will grant holders access to:
- create DAO proposals
- vote on DAO proposals
- receive DAO rewards
Below are the key activities of the PineDAO
Manage the treasury of Pine Protocol
- Fee from Pine loans, i.e. interest rate spread
- Auto-rollover fees
- Liquidation fees
Provide liquidity in NFTFi
This is done both on Pine Protocol and other reputable NFTFi platforms / protocols.
- Interest yield
- Liquidation proceeds
- Other fees associated to liquidity provision
NFTFi Ecosystem Partnership
- Incubating and investing in other NFTFi platforms and protocols
- Liquidity mining using tokens the DAO received as protocol fees (e.g. BEND, JPEG)
To allow for better granularity, the DAO reward distribution is organized in Ages and Epochs, which is inspired by Morpho (https://www.morpho.xyz/). The goal of this system is to bootstrap the protocol while progressively decentralizing its governance.
Usually, DeFi protocols schedule emissions and hardcode their reward system years in advance. This is not the case with Pine. We believe that Pine's needs will quickly evolve and that a long-term emission schedule may turn out to be too rigid.
Thus, Pine's reward distribution is organized in Ages. An Age lasts around three months and sets new rules for reward emissions according to the protocol's needs.
Each age is subdivided into smaller periods named epochs. Epochs are regular interval checkpoints within the Age where users can claim rewards (e.g., with a Merkle tree drop).
The rules for the first two Ages, namely Age 1 and Age 2, will be pre-determined by the Pine team. Starting from Age 3 and onwards, a proposing and voting mechanism is conducted before the beginning of each Age to set the rules.
There are two types of incentives, i.e. DAO reward, that are governed by the PineDAO
vePine & sbPine holders
holding amounts are calculated off-chain and verified on-chain
Users of the Pine protocol
protocol activities are calculated off-chain and verified on-chain
For each age, the main rules would be:
- Length of each Epoch (the default is 1 week per epoch)
- Total amount of incentives to be distributed in PINE token and the breakdown for each categories, such as:
- staking reward
- protocol incentives (borrower)
- protocol incentives (liquidity provider)
Once the DAO proposal is passed for a specific Age, anyone can compute the rewards earned by every user at each epoch. For example, one could look at emitted events to rebuild the state of a user in Typescript. We will open-source a script for Ages calculations.