Following its first official community vote, the leading Avalanche-based automated market maker, Pangolin, just saw the tokenomics of its native token (PNG) dramatically improve. As of minutes ago, PNG-based token pairs on the platform are now receiving the majority of the liquidity mining rewards – namely three times the amount that AVAX-based pairs will be receiving.
Up until now, PNG-based pairs received no advantage over their AVAX counterparts. As a result, despite the growing liquidity on the platform, as well as the impressive trading volume milestones, holders of the native token for the leading Avalanche-based automated market maker had little reason to celebrate. The price of PNG dropped from almost $20 per token down to less than $2 in a steady fashion. This forced the team to start Pangolin governance before the initially announced date.
The drop in price was also caused by a large concentration of tokens in one particular holder, who never shied away from dumping massive quantities on the market. Based on community discussions, there is a good reason to believe that future PNG governance proposals will attempt to combat this problem as well, for example, by rewarding long-term holders over users who immediately dump their reward tokens.
As of yet, no significant surges in price have been observed for the Pangolin token. Whether the changes would spark new interest in the crypto asset over time remains to be seen.