Hello Pollo Family.
Please read to the end.
You will finally understand what we meant when we said we couldnât do time locks until April and why Pollo started with Yield Farming.
â PoFiâs Maximum Supply will be changed
The PoFi Maximum Supply will be changed from 21 million to 500,000.
This means that the supply of PoFi will stop around April 18, 2021. After that, there will be no new PoFi issued, and the only way to get them is through the market.
âDoes this mean the end of Pollo?
No, it does not. It is the opposite.
We know that a lot of yield farming cannot withstand inflation and prices will continue to fall unless there is a specific reason to do so.
Therefore, from the beginning, Pollo has set the amount of PoFi generated per block at 0.5/block as a measure against inflation.
Furthermore, as I mentioned at the beginning of this article, we will stop the supply of PoFi itself, which is the key to yield farming. In fact, this was a decision we made from the beginning.
For the business owner, yield farming is an important service that is a source of profit. The decision to terminate it is usually not possible.
This will never dilute the value of PoFi by more than 500,000, rather the combined number of âBurnâ will lead to a more stable price.
The purpose of prioritizing the release of the whitelist conditions over the announcement of the rule change is to stabilize the price of PoFi.
By letting people know in advance what conditions are required to pass the whitelist, we believe that the balance between supply and demand (buying and selling) is likely to be maintained.
As a result, we expect that more Pollo families will be able to join Pollo Basic Income under the best possible conditions.
The following are answers to possible questions.
âWhat exactly is the value of 500,000 PoFi?
I can understand your concern, but donât worry.
Polloâs next protocol is Pollo Basic Income.
Details of Pollo Basic Income will be announced soon, but PoFi will be active in the Bank Pool and Share Pool where PDO and sPDO can be earned.
Like the limited number of sPDOs, PoFi serves as a limited utility token with only 500,000.
But thatâs not all⌠Did you know that PoFi has a vote feature, a feature that has been passed down from Uniswap for generations, but not many cases where vote is actually used.
Pollo wanted to borrow the VOTE feature to make DAO a reality. Thatâs why Pollo needed to fork PancakeSwap, a fork of Uniswap.
Some of you may have been disappointed when you first saw the UI of Pollo Swap. Some of you may have been a bit surprised when you first saw the Pollo Swap UI and muttered, âOh, so this is copycatâs after all.â
But Pollo has a strong respect for this great open source and user interface. We are proud to launch Pollo together with this system created by our predecessors.
âWill PoFiâs role end once Pollo Basic Income starts?
No, it will not.
Not only will PoFi be the pickaxe for obtaining the rare sPDO, but it will also play a great role at Pollo Vaults, which is scheduled to open in May.
Above all, the biggest role that Pollo Team envisions is PoFi as a governance token specialized in DAO with the idea of Basic Income.
Let me tell you what I mean, although it will take a while.
Whenever we talk about poverty issues, disaster issues, volunteerism, etc., the problem that always follows is âfundingâ.
There are probably countless occasions when you have thought, âI wish the world were kinder.
In the past, there have been cases where influential people have lobbied for Basic Income social experiments to be realized with the finances of UNICEF and the experimental area.
But that is only a small part of the whole.
You may have guessed that wealthy people are very cunning in their political outreach and are taxed at a much lower rate than the middle class and poor.
In the US, there are over 200 different tax credit programs that benefit only a small percentage of the population, and in the UK, data shows that there are 218 different tax credits whose economic impact has not been calculated. (J.Rawls(1971), A Theory of Justice. Cambridge: Combridge University Press.)
In addition to that, the poor are getting squeezed more and more and the rich are getting richer, as shown by a study that shows that in the US the wealth of the top 0.1% is almost equal to the wealth of the bottom 90%. (Estelle Sommeiller and Mark Price (2018), The new gilded age)
In a sense, this is the limit of the capitalist economy. We and our world are living according to the mainstream capitalist economy with all these problems.
Of course, there will come a day when a new economics will replace the capitalist economy, as if the geocentric and the celestial were interchangeable.
But we donât have to keep waiting for a turning point that we donât know when it will come. Donât you think we should try and create our own?
One such proposal is a DAO (Decentralized Autonomous Organization).
As I mentioned earlier, PoFi has a vote function that is suitable for DAO.
Unlike in the real world, it doesnât matter your age, gender, nationality, or skin color to hold this PoFi; a vote for PoFi will always have the weight of one vote.
The Pollo Team sincerely hopes that the DAO with the Basic Income philosophy will function properly by utilizing this unique feature.
However, I am aware of the following objection:
âSince you need money to own PoFi, isnât it ultimately a game for the wealthy?â
Thereâs nothing I can say back about this.
Ideals and reality always come and go. I hope you understand that the Pollo project is the result of the marketing teamâs discussions and search for a balance point while facing DeFiâs current situation.
No matter how we put it, we understand that the stability of the Pollo familyâs life and the success of the project are the most important prerequisites. I donât believe that people who cannot stabilize their own lives can help others. If you want to help a drowning person, the first prerequisite is that you are not drowning.
Pollo Basic Income and Pollo Vaults will provide you with a solid foundation for your life, and then we can discuss your social contributions in the DAO.
The DAO is funded by a community fund that is pooled through the operation of Pollo Basic Income. The uses of the community fund are infinite.
And we hope that the Pollo family, who will take on the challenge of solving the social problems that Pollo aims to solve, will be the ones to hold PoFi, the governance token that will determine the future of Pollo.
When you get right down to it, the need for PoFi just boils down to this one point.
âWhy canât other yield farming do what Pollo does?
Why is it that Pollo can make this decision and other yield farming cannot? The reason is obvious.
Most yield farming is based on yield farming itself, which is the basis of the protocol.
Pollo Swap (Yield Farming) is just the beginning of Pollo, as you can see in the roadmap.
This is just an appetizer for everyone to win 500,000 PoFi, we have not yet provided the main dish.
âWill PoFi lose its liquidity?
No need to worry. As you can see in the roadmap, you can earn sPDO by depositing PoFi/BUSD LP, etc. in Pollo Basic Incomeâs Share Pool. This is where you can get enough liquidity for PoFi.
Pollo Team is also ready to provide liquidity if needed.
âWhat is the difference between yield farming and seigniorage?
Yield farming bears its most delicious fruit on the first day.
On the first day, the APY will be over 100,000%, and then it will gradually decline.
It is not uncommon for the APY to fall below 1000% by the time one month has passed.
In contrast, Pollo Basic Income (seigniorage) is structured differently.
On the first day, the main protocol, called the boardroom, spits out profits ranging from 800% to as high as 2000% APY.
However, the boardroom has a parameter called the expansion rate.
In other words, as you can see from the bDollar regulations, the first number of BDOs issued was 9450, but on March 19, 640,000 were issued.
Basically, if you get sBDO and deposit it in the boardroom, you will receive more and more BDO.
This keeps the APY stable around 1000% without dropping that much.
The actual mechanism is a bit more complicated, but thatâs what it is in simple terms.
PoFi is no different in its basic structure, and this seigniorage mechanism is essential for the long-term stability of life that Pollo promises to its families.
We will be releasing a detailed Pollo Basic Income document soon. Stay tuned.
