Token Hard Fork and Reward Equation Change Proposal

Good morning, Pilgrims. I’m Taem from Test in Prod. We designed and built the Pilgrim Protocol.

Pilgrim Protocol is in public beta and launched on 15 Mar. Therefore, unfortunately, it does have a few design problems.

We found an activity that can jeopardize the entire protocol using the protocol’s design problem: our sincere apologies, Pilgrims.

Please read carefully and vote in discord. Due is 25 Mar, 00:00 UTC .

Abstract

An unidentified wallet repeatedly sent transactions and mined 28,820,367 PIL in 24 hours. It is 89% of the current supply and 2.88% of four years total supply .

Therefore, the wallet can jeopardize the entire token holders and protocol. We cannot trust this wallet since it has already liquidated 5,212,274 PIL .

The following article explains what happened and the proposal to protect Pilgrims’ interests .

What Exactly happened

From block 14436439, a wallet has repeatedly sent the following transactions for self-trading -

  • Buy Exact Rounds
  • Sell Exact Rounds
  • Claim Pair Rewards

This action shifted the trading volume of pool 12 and increased APR to an enormous number. Because trading volume is one of the parameters to calculate the PIL reward per pool. For your information, here is the full equation -

sqrt(TVL) * Trading Volume * reward parameter * halving parameter * multiplier

Our intention for this equation was to design an exciting game between metaNFT holders and round traders where -

  • metaNFT holder attract more round traders for more yields
  • Round traders invest in the best upside expected pools.

We were concerned that the reward can fluctuate from 0 to infinite from pool to pool because of self-trading. But, we prioritized designing the system ideally. We did not expect to abuse this game so early.

Solution Proposal

We propose the token contract hard fork and changing the reward equation.

Token Hard Fork

  • TIP will create a snapshot just before the abuse starts - block 14436438.
  • Create a new PIL token contract and mint the same current supply - 1,000,000,000 PIL.
  • For all PIL holders , TIP sends new PIL tokens as much as holding old PIL tokens at the snapshot.
  • All Pilgrim contracts will be changed to use the new PIL token.
  • For Uniswap LPers , TIP will send the same amount of tokens that is locked in the position.
  • For metaNFT holders that Uploaded Uniswap positions to Pilgrim, TIP will send PIL enough to delist the pool.

Furthermore, PIL-ETH Uniswap Pool is currently imbalanced. With a hard fork, we can re-start the Uniswap Pool more appropriately to attract more LPs.

Changing the Reward Equation

Currently, we are running simulations to find out what equation will work for Pilgrim. The new reward equation’s object should fulfill the intention of our game design, be less abusable, and guarantee reward if the pool has liquidity in it.

We are currently testing out these equations -

  • TVL * log(Trading Volume) * reward parameter * halving parameter * multiplier (Shout out mountain dew for providing this excellent idea.)
  • sqrt(TVL) * log(Trading Volume) * reward parameter * halving parameter * multiplier
  • TVL * max(sqrt(Trading Volume), 1) * reward parameter * halving parameter * multiplier

We will run more simulations and shall choose the most suitable equation for Pilgrim.

Timeline

We are expecting to prepare all of these in 6 days. If the proposal is passed, we will execute this proposal on 1 Apr UTC. The exact time will be announced a day before.

Conclusion

Most of all, we are sorry for putting you into this problem, Pilgrims. We will take a huge lesson here, will try our best to design a better games with y’all.

I will cast a vote at Pilgrim Protocol’s discord announcement channel. Please react with :+1: if you are in favor; otherwise, please react with :-1:.

TIP will execute this plan if there are more :+1: than :-1: as of 25 Mar, 00:00 UTC.

Thank you always, Pilgrims. I love building with you all.

Peace!

7 Likes

Long. Live. Pilgrim.

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Much love this project :heart::heart::heart: go ahead pilgrim :smiling_face_with_three_hearts::tada:

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As much as I waited for so long, I believe that Pilgrim will survive for a long time and go to the moon.

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Pilgrim to the moon!

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To the moon :waning_gibbous_moon: :waning_gibbous_moon: :waning_gibbous_moon: :waning_gibbous_moon: :waning_gibbous_moon: :rocket: :rocket: :rocket: :rocket:

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thank you for sharing transparently what you’ve been experiencing.

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I love this community, and we are all together in this!

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This project realy amayzing .I am still waiting for airdrop.

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Great community…u people are working hard…

Pilgrim to moon…

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Don’t be frustrated! We can restart without the abuse and make $PIL to the moon. Long-term play is the most important thing for project success. Don’t give up. And thanks for sharing everything transparently.

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Давайте перезапустимся! :+1:

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long live pilgrim.thank you

1 Like