It has been a long time coming, on the 31st May 2018 at 00:00 CST our 1000:1 redemption window to swap the old PACcoin to $PAC is coming to a close. Although $PAC has been actively trading since the middle of February, $PAC has been unfairly affected by the ecosystem of the old coin, even to this day. The entire team will breath a huge sigh of relief at the unloading of the old coin from our project and this will mark the true ‘launch’ of $PAC.
$PAC is ready to launch into its next phase of growth throughout the rest of the year and in doing so, make note of some incredible milestones we’ve already hit:
Over 4,000 masternodes
We are over halfway to our goal of 7,000 active nodes on the network. Which will possibly give $PAC one of the largest masternode networks in the the cryptosphere. Getting to this point, would put us roughly in line with DASH where 70% of the coins in circulation are ‘locked up’ creating one of the most stable and secure payment networks on the globe.
Just imagine how a secure payment network like this could be of value to commercial industries, everywhere.
Closing the public redemption early
We are pleased to announce that the PACcoin to $PAC redemption will be closing June 1st. From monitoring the network traffic of both iterations of the coin we have uncovered that there have been people abusing the redemption process, therefore to safeguard the community and to stop future occurrences we will be altering the redemption time-frames to:
Redemption is officially closing June 1st – GMT
Public redemptions after this time will be valued at 4000:1 on a case-by-case basis
We have redeemed just over 85% of the old PACcoin for new $PAC that was pre-mined for the redemption. Due to the nature of the way the POS system works with the old PACcoin, it became increasingly difficult to calculate accurately how many new old coin could be produced on an ongoing basis running up to the end of the 1000:1 window.
New $PAC was not mined in advance to account for the extra old PACcoin supply generated in the last four months.
A quick look back at why the redemption was needed
In the aims of educating our community, we feel it’s good to take a step back and re-look at why the redemption was necessary for the future success of the currency.
Back in the fall of 2017 the new PACcoin team decided to redeem the old PACcoin for $PAC at a ratio of 1000:1 for a few important reasons. PACcoin was built on a POS (proof of stake) model where the older your coins, the more you have in a pool together, the more coins you would be rewarded. The original supply was also… overwhelming at over 3.5 trillion circulating supply and the value of the coin was very poor (bottom of coinmarketcap, poor).
The original PAC code-base was also not designed to scale, because as the network grew, the PAC chain started to “delete” or rollback transactions when the block times were too small as well as other issues. Rather than to invalidate the old PACcoins with a burn or a fork, the team decided to run a redemption so people could redeem their old PACcoin to new $PAC at a ratio of 1000:1 to bring the coins design in line with better ratios so $PAC could be opened up to new BTC markets and more use cases.
The old POS system favored larger/older wallets significantly and was putting significant strain on the marketability of the coin making the rich, richer and making the poor, poorer, hardly the basis for a community driven coin to base it’s foundation upon. Larger wallets that were pooling larger numbers of coins to make, even MORE coins proved to be choking the system. Moving to a new masternode system incrementally helps distribute coins evenly across the $PAC ecosystem, whilst rewarding adopters of the currency fairly at any point in the journey they joined us on.
If any coins remain from the redemption pool these will be used for charity and operations (which involves the hiring of a new, public facing management team and a larger marketing budget built into a treasury program).
Up until this point the entire coin launch and the bulk of the marketing/exchange listing expenses have been funded by the original founding team.
Starting on June 1st all of $PAC community projects will be funded by the community governance system or the DAO (Decentralized autonomous organization). As we refine the governance system as a community, the goal will be to build proposals that get easy approval by the masternode voting/proposal system.
The masternode votes will be used to stop proposal abuse and ensure that recurring proposals hit their dates and deliverables. Our community HUB PAClyfe, which is in active development will provide a point of reference for all voting, proposals, feedback cycles and monitoring of the whole DAO ecosystem.
Evolving the $PAC landscape
We will be releasing some news shortly about $PAC’s POW (proof of work) system moving to a (first of its kind) stricter timer-based transaction model to eliminate potential future inflation issues.
The end result is that blocks will be regular and predictable. More to come on this in the next few months. The whole redemption plan from the beginning was originally designed to not leave any coins behind and was designed to mirror the existing coin supply of the old PACcoin.
When this was decided, the team calculated that even with the four months of POS rewards there would be enough coins to support the redemption of all the old PACcoin.
No cost, easy masternode hosting
The founding team has also decided internally to self-sponsor away from the DAO some larger initiatives and programs such as a management retention and incentive program and a ‘no cost, easy masternode hosting’ program.
We want to thank our community for challenging us and bringing some great initiatives and ideas to $PAC. Thanks to Brad, Koen and the moderating team for all their great ideas and hard work. Keep up the suggestions and excellent proposals.