Passport Reward Pool Stake Preservation

Objective

We have a series of proposed changes coming to VaporNodes, culminating in the creation of a secondary marketplace that would allow node owners the ability to buy and sell nodes. With the implementation of a new sustainable reward model for VaporNodes VPND emissions, we now move to create a new Passport Reward Pool funded by our ecosystem revenue. Passport will pay out independently of our VPND reward pool emissions, based on what % of total TVL you currently hold in your owned nodes. We wish to prevent future dilution while also enabling the creation of a responsible & healthy secondary market by turning off compounding & deposits just prior to the launch of the market

Our recommendation is to turn off compounding and deposit functionality on nodes prior to launching our NFT marketplace, where we’ll then convert all nodes into sellable/transferable NFTs – allowing node owners the ability to divest, or increase their total TVL through the acquisition of other nodes (instead of compounding/depositing). Turning off compounds and deposits just prior to the launch of the secondary market will allow VPND to still be purchased for deposits, but then not undermine the secondary market once it’s online.

Proposed Changes

If approved, the following changes would be implemented at the same time as or just before we launch the Node Secondary Market through our upcoming NFT marketplace. Actual date of implementation to be determined, but our community would be given a 7-day heads-up unless otherwise communicated

• Turn off the ability for a node to compound pending rewards (just prior to secondary market launch)
• Turn off the ability for a node owner to deposit VPND into their node (just prior to secondary market launch)

If this vote fails, the secondary market for NODES can’t be brought online and nodes won’t be converted to NFTs. Eliminating an additional source of revenue for Passport, as well as closing the door to node divestment.

https://vaporfi633.sharepoint.com/:w:/s/VaporFi/ETXYYOPr8QFGk2W18WMWUz4BXpU6CsjWqJxphaDPnwWE7Q?e=kieZ4f