How Panvala Works
BTC and ETH hodlers aren't just investors
Hodlers dilute their share of the currency supply to subsidize the security of the network. The security of a blockchain is a public good we can all share without degrading security for anyone else. People don't think of hodlers as philanthropists because they've made so much money over the years, but that's the breakthrough! Since Bitcoin was launched in 2009, people have been outlandishly rewarded for subsidizing public goods.
Bitcoin matches at 60x
In Q4 of 2019, Bitcoin users spent 2500 BTC on transaction fees. BTC hodlers diluted their holdings to fund 150,000 BTC of block reward subsidies. They're matching contributions to Bitcoin's security at 60x. In the normal world, people get excited when a rich person offers to match contributions at 2x: if we give a dollar, they'll match with a dollar. But Bitcoin is matching at 60x! They’re the most generous philanthropists in the world.
Panvala matches like Bitcoin
If we can generalize Bitcoin's model to subsidize more broadly useful things than blockchain security, it could have a giant impact on the world. That's what we're doing with Panvala. In the quarter that ended on January 31, Panvala matched donations from our sponsors at 11.2x. For each token that came into the token supply as a donation, 11.2 PAN went out as grants. We believe that like Bitcoin, high levels of matching can be sustained for over a decade, and that Panvala's matching can be shared among as many communities as want to use it.
We can create an incredible decade-long window when any community in the world can have their contributions to public goods amplified at attractive rates.
Think about all the Bitcoin mining operations that have sprung up out of nowhere since 2009 to earn rewards from Satoshi’s decision to subsidize security, and imagine that Satoshi had decided to subsidize other public goods instead. Firms would pop up all over the world—not to rack up power bills mining blocks, but to provide public goods that we’ve all wanted but couldn’t coordinate to fund.
Our launch partners
Our supporters care about the future of Ethereum
“I'm donating to Panvala because new socially driven organisations could be the key to avoiding a tragedy of the commons for maintaining public networks like Ethereum.”
Simon de la Rouviere
Token Engineering Pioneer
Panvala was launched by ConsenSys. ConsenSys is a global blockchain technology company building the infrastructure, applications, and practices that enable a decentralized world.Learn about ConsenSys