Papyrus Network Update: DAO

We would like to apologize for the period of radio silence, as due to the COVID pandemic it was not an easy time for many of us. In this blog post, we would like to summarize the current status of the Papyrus project and our thoughts on its future. Here is a recap of the past few months:

• As of today, Papyrus Network is fully operational and is running without issues since its launch on the 11th of November 2019. Soon we will celebrate its launch anniversary! Papyrus Network nodes mined over 24 million blocks and keep mining 1 block every second. More than 25M of PPR tokens were transferred from Ethereum Network to Papyrus Network by token owners using two-way Papyrus Bridge (https://bridge.papyrus.network/). Papyrus Network is uniquely positioned as an alternative to Ethereum for DeFi and decentralized application builders by providing (a) native 100x higher transaction throughput, which can be further improved using ZK-Rollups, (b) zero transaction fees, ensuring allocation of network resources based on token stakes, © high-grade security and decentralization by using PoA consensus combined with two-layered governance, where network nodes and token holders have independent powers over important decisions.
• Full implementation of all Papyrus Network components is available as open source on github: https://github.com/papyrusglobal
• Papyrus project operations in the past several years were primarily self-funded by the members of the founding team, as token sale performed in 2017 was not enough to allow project operations in a long run. Unfortunately, founding team members are no longer in a position to provide private funding for the project and the development team’s hopes to attract additional funding from other sources didn’t materialize yet.
• As stated in our last blog post we reduced the team’s operational expenditure and entered the “wait and see” mode, observing developments on the crypto markets, looking for ideas on how to develop the project further having very limited remaining funding available.
• The good news is that DeFi ecosystem demonstrated great growth during the past few months and the total value locked in DeFi is now above $12B (https://defipulse.com/). Everyone, who tried to use DeFi products running on Ethereum encountered very substantial gas fees and significant inconveniences when interacting with DeFi applications. This proves that Papyrus Network is timely to the market and have a great product offering, which may be picked up and adopted by DeFi application builders to greatly benefit their applications community and overall DeFi ecosystem. All that is needed is a few large applications joining Papyrus Network and kicking off its adoption. We are big believers in the Papyrus Network and committed to making every effort to support its adoption.

Thinking about the current situation, we came up with the following idea for the future of the Papyrus Network project:

• We strongly believe in decentralization and the ability of communities to self-organize around great ideas and concepts. We believe that organizing Papyrus Network project governance using DAO is the move, which will bring more engagement from community members and may become a necessary kick for the project to boost new partnerships and adoption. In addition to that, other projects in DeFi space have already proven that DAOs work in practice. Based on these thoughts, we plan to set up DAO for Papyrus Network project governance by the end of 2020. PPR token will become a Papyrus Network DAO governance token and will allow existing token holders to govern project evolution.
• To ensure that there are no misalignments in incentives between token holders and team members, the Papyrus team will move all PPR tokens which were not allocated during TGE 1 to Papyrus Network DAO, putting them under control of existing PPR token holders, who acquired tokens during TGE 1. The team committed to moving under DAO control all originally planned token pools, including the TGE 2/3 pool (45% of the supply), the network growth pool (15% of the supply), the treasury pool (15% of the supply), and the founding team pool (10% of the supply). As a result, 850,000,000 PPR (85% of the supply) will be put under DAO governance as a treasury, which may be used to fund further Papyrus Network development operations based on PPR token holders’ approval.
• Papyrus development team is committed to maintaining team’s Papyrus Network nodes up and running until 30th June of 2021 using remaining project funding. After that nodes managed by the Papyrus team will be turned off. We hope, that we all will find a way how to scale the Papyrus Network project and there will be enough independent network nodes by that time to keep the network operational.
• After DAO is launched, community members are encouraged to put forward and vote for proposals on how to deal with existing Papyrus Network project challenges:

o business development initiatives to attract DeFi projects and application builders into Papyrus Network ecosystem;

o business development initiatives to attract network node operators;

o initiatives to attract funds for further project development.

We are calling for the community to self-organize and engage in discussions on how to make the Papyrus Network ecosystem growing. Soon we will provide an update on DAO deployment and how PPR token holders can make/vote for proposals.

Many thanks for your patience and continued support!