Most cryptoeconomic systems to date are built assuming that arbitrary participants with the right incentives will cooperate to produce useful information. We believe this is true for systems with objective goals, like blockchains or prediction markets. But for systems like Panvala that have subjective goals, organizing the right participants is critical to success.

That’s why our goals for distributing Panvala tokens are different. We’re not trying to sell to the people who are willing to pay the most money, we’re trying to sell to the teams that have made the largest impact in the Ethereum ecosystem. People like the security researchers and auditors who have leveled up our engineering practices, wallet developers who have made this technology useful for normal people, and block explorer developers who have made the blockchain feel real with tools that help us see what’s actually going on.

With these kinds of people working together, we can take the next steps to make Ethereum safer for more early adopters. Through our application process, we will identify promising partners and distribute tokens to them. These partners will have an opportunity to buy tokens without worrying about them running out, but the public will be able to buy from another batch of tokens at the same price.

In their applications, partners tell us about their impact in the Ethereum ecosystem, which kind of partner they are, and tell us how much they would like to spend to purchase tokens and participate in the system. This contribution amount will be used to cap each partner’s participation in the sale.

Adding up all the participation caps for the partners we accept gives us a maximum price per token if everyone bought their entire allocated amount. To encourage partners to participate, we will seek a lower price per token by lowering the token allocations for each partner, especially those who have made a smaller impact in the community.

Our goal is to distribute ten million tokens to security partners and ten million tokens to user agent partners. If security partners specify higher total participation caps than user agent partners (or vice versa), we’ll reduce the caps for the higher group to get closer to the goal of an equal token share for each group of partners.

After you apply, we encourage you to spread the message to the teams you would like to cooperate with to make Ethereum safer. New participants can acquire tokens even after the launch, but our chances of succeeding are higher if we start together. We want everyone to have a say in how this system operates, what work we reward with our token capacitor, and how to find the funders who will keep the capacitor charged to sustain our cooperation.

Applications will be accepted through this form until the end of ETHBerlin on September 9. The sooner you apply, the sooner we can include you in the conversations that will shape the launch of Panvala.