On Monday, decentralized autonomous firm Panda Dao dissolved itself and proposed a new proposal to return its assets to investors. According to the seven-point referendum, 500 million to 700 million PANDA tokens will be distributed to investors out of 1.292 billion Pandas. Some of the remainder is redistributed among liquidity providers. Meanwhile, an estimated 50 million pandas will be burned, while another 44.56 million pandas will be paid as compensation to the eight main developers of the project.
Once the referendum passes and the decommissioning process is complete, the Panda dev team plans to remove Panda from Uniswap, publish all of its projects’ open source code, and shut down all social media under the Panda DAO umbrella. Regarding the reasons for the collapse, the Panda DAO team wrote:
“Panda DAO has been online for almost a year. During that time, we were able to sidestep several market crashes. However, the real crisis we faced was related to governance issues in our DAO.”
A core member, who goes by the pseudonym “Panda,” lamented that the team faced a long and drawn-out battle in the project’s development. “Our community wanted more confirmation that Panda is moving in the right direction,” but developers don’t work for free, and [I think] No one knows how to survive a long and painful bear market.
According to “Panda”, the internal chaos in the DAO greatly hindered the effectiveness of its work. After 1,900 Ether (ETH) was collected last year with 1 ETH = 500,000 pandas, the community has been conflicted about how best to use the money going forward.
“At that time, the NFT market was on fire. Because of this, many of our users wanted us to create Panda NFTs. But after going through the crypto bear market of 2017-2018, we knew that the market was showing signs of FOMO. [Fear of Missing Out], and it was only a matter of time before the crash. Therefore, we have taken the difficult decision to decline the community’s request for Panda NFTs.
“Panda” explained that while NFT drops generate income for the community, it does so in terms of the integrity of the protocol. “In the long run, the risks associated with the latter are greater than the former,” he said.
Since then, it seems there has always been a rift between the Panda developers and users. “We had a lot of ideas but little capital; our users wanted us to make Panda Apps and even set up a venture capital division, but we had to say no to those ideas.”
The buyback proposal was dropped for similar reasons. “Initially we bought back 2 million PANDA tokens,” wrote a member of the original team. “However, many community voices wanted me to proceed with the purchase, even though I was not in a position to do so. I am one of many stakeholders tasked with managing our treasury.”
As time passed, it became impossible to unite the disaffected voices. “One faction wants developers to focus on short-term gains like token buybacks. The other side wants long-term gains, reject all buybacks and keep the money in the treasury.”
“Panda” wrote that it took him many “sleepless nights” to reach a decision. However, the developer said he had no regrets about issuing the referendum. “We were embarrassed to have so many accomplishments, but at least we tried and didn’t throw our community under the bus.” Within a year, the Panda DAO protocol went live and became the largest DAO on the Dework blockchain. He also said that he hopes that “Panda” will prove that “code is law” in the blockchain space.
“The project was successful in a short time, because of the smart contracts that protect the community agreements. We were one for ERC-721, now to return the PANDA funds, etc. Without smart contracts, we could never have left. There is a lot of market turbulence while protecting the funds of our users.
Many times to solve problems,
Too little time for development work,
We continue on the path of ConstitutionDAO,
Also hope someone continues to explore our way.
Society is looking for more insurance, but the developers don’t work for free.
No one could understand how the long bear market ended.
In this case, let’s go full code autonomy,
Full refund as people. pic.twitter.com/9HooAyHB0k
– Panda ( ) (@hellopandadao) September 18, 2022