Skip to content
New issue

Have a question about this project? Sign up for a free GitHub account to open an issue and contact its maintainers and the community.

By clicking “Sign up for GitHub”, you agree to our terms of service and privacy statement. We’ll occasionally send you account related emails.

Already on GitHub? Sign in to your account

Reasonable and Efficient Strategy #145

Open
tecparamsbot opened this issue Dec 27, 2021 · 0 comments
Open

Reasonable and Efficient Strategy #145

tecparamsbot opened this issue Dec 27, 2021 · 0 comments

Comments

@tecparamsbot
Copy link

image

What is the overall Commons Configuration strategy?

I think this strategy is reasonable and efficient, allows fair structure for decision making, low barrier to entry, and ample funding for the project to succeed while also having a successful token launch.

FORK THIS PROPOSAL (link)

Summary

Module 1: Token Freeze & Token Thaw

Parameter Value
Token Freeze 13 Weeks
Token Thaw 65 Weeks
Opening Price 1.55 wxDAI

Module 2: Augmented Bonding Curve

Parameter Value
Commons Tribute 60.00%
Entry Tribute 2.00%
Exit Tribute 5.00%
*Reserve Ratio 16.64%

*This is an output. Learn more about the Reserve Ratio here.

Module 3: Tao Voting

Parameter Value
Support Required 75%
Minimum Quorum 10%
Vote Duration 5 day(s)
Delegated Voting Period 4 day(s)
Quiet Ending Period 2 day(s)
Quiet Ending Extension 1 day(s)
Execution Delay 1 day(s)

Module 4: Conviction Voting

Parameter Value
Conviction Growth 5 day(s)
Minimum Conviction 0.5%
Spending Limit 10.0%

Module 1: Token Freeze and Token Thaw

Strategy:

I think the token freeze should be shorter because of the quick nature of our markets and DeFi and if we make it too long we could end up being in a crypto winter which would limit demand and options, but I think the thaw should still be 1+ years so that things are too fast and we still are being intentional about things.

Parameter Value
Token Freeze 13 Weeks
Token Thaw 65 Weeks
Opening Price 1.55 wxDAI

Hatcher's TEC Release Schedule

This is the release schedule for TEC that was given to Hatchers. Their TEC will start out frozen and then slowly become liquid according to the graph above.

Token Release Timeline

Duration % of Tokens Released Price Floor of Token
3 months 0.00% 1.55 wxDAI
6 months 20.00% 1.24 wxDAI
9 months 40.00% 0.93 wxDAI
1 year 60.00% 0.62 wxDAI
1.5 years 100.00% 0.00 wxDAI
2 years 100.00% 0.00 wxDAI
3 years 100.00% 0.00 wxDAI
4 years 100.00% 0.00 wxDAI
5 years 100.00% 0.00 wxDAI

Module 2: Augmented Bonding Curve (ABC)

Strategy:

I decreased the entryand exit tributes because I think the tributes being too high could lead to a narrative of ponzi scheme surrounding our token which is not at all beneficial. It would also be a large deterrent to many buying the token. We will still retain a lot of funding by holding so much of the token that can go to furthering projects and initiatives.

Parameter Value
Commons Tribute 60.00%
Entry Tribute 2.00%
Exit Tribute 5.00%
*Reserve Ratio 16.64%

*This is an output. Learn more about the Reserve Ratio here.

Allocation of Funds wxDAI
Common Pool (Before Initial Buy) 756734.14
Reserve (Before Initial Buy) 504489.43
Common Pool (After Initial Buy) 761734.14
Reserve (After Initial Buy) 749489.43

TEC Price vs ABC Reserve Holdings

The ABC mints and burns TEC tokens, the price of the TEC token is dependent on the funds that is held in the Reserve. This graph shows how the ABC's Price for TEC tokens changes with the ABC's Reserve Balance. The Initial Buy that will happen at launch is highlighted.

Example Transaction Data

Tx Reserve Total Supply Price Amount In Tribute Amount Out New Price Slippage
0 504489.43 1956421.69 1.55 250000.00 wxDAI 5000.0 133175.53 TEC 2.16 15.75%
1 749489.43 2089597.21 2.16 5000.00 wxDAI 100.0 2266.58 TEC 2.17 0.27%
2 754389.43 2091863.79 2.17 100000.00 wxDAI 2000.0 42938.84 TEC 2.4 5.02%
3 852389.43 2134802.63 2.4 3000.00 TEC 143.5 7031.38 wxDAI 2.38 0.35%

ABC Overview

Reserve (wxDai) Supply (TEC) Price (wxDai/TEC) Market cap
10,000 1,019,033 0.06 60,124.36
50,000 1,331,854 0.23 300,561.44
100,000 1,494,635 0.40 601,107.72
200,000 1,677,316 0.72 1,202,200.79
300,000 1,794,360 1.00 1,803,294.88
400,000 1,882,325 1.28 2,404,385.96
500,000 1,953,516 1.54 3,005,479.68
600,000 2,013,676 1.79 3,606,571.44
700,000 2,065,985 2.04 4,207,669.77
800,000 2,112,394 2.28 4,808,763.37
900,000 2,154,194 2.51 5,409,853.08
1,000,000 2,192,285 2.74 6,010,942.67
1,250,000 2,275,199 3.30 7,513,680.94
1,500,000 2,345,267 3.84 9,016,418.06
1,750,000 2,406,189 4.37 10,519,143.91
2,000,000 2,460,240 4.89 12,021,874.41
2,500,000 2,553,288 5.89 15,027,347.96
3,000,000 2,631,919 6.85 18,032,811.14
3,500,000 2,700,288 7.79 21,038,280.85
4,000,000 2,760,945 8.71 24,043,742.00
5,000,000 2,865,366 10.49 30,054,668.08
7,500,000 3,065,316 14.71 45,082,019.34
10,000,000 3,215,588 18.69 60,109,345.12
15,000,000 3,439,977 26.21 90,163,979.75
20,000,000 3,608,618 33.31 120,218,725.73
50,000,000 4,202,846 71.51 300,546,639.85
100,000,000 4,716,544 127.44 601,093,202.82

Module 3: Tao Voting

Strategy:

I think this is not too short or too long. If a DAO takes too long to make decisions, it hinders its progress and ability to execute. I think this is enough time without too much barrier to entry and allows for voters to make informed decisions without sacrificing efficiency.

Parameter Value
Support Required 75%
Minimum Quorum 10%
Vote Duration 5 day(s)
Delegated Voting Period 4 day(s)
Quiet Ending Period 2 day(s)
Quiet Ending Extension 1 day(s)
Execution Delay 1 day(s)

Tao Voting Timeline From Proposal To Execution

This shows how the timeline stacks up for yes/no time based votes that can change the configuration after launch.

Timeline Data

# of Quiet Ending Extensions No Extensions With 1 Extension With 2 Extensions
Time to Vote on Proposals 5 days 6 days 7 days
Time to Review a Delegates Vote 1 days 2 days 3 days
Time to Execute a Passing Proposal 6 days 7 days 8 days

Module 4: Conviction Voting

Strategy:

I think any more than spending 10% of our funds at once would be crazy!! 10% is the highest I think is reasonable.

Parameter Value
Conviction Growth 5 day(s)
Minimum Conviction 0.5%
Spending Limit 10.0%

Minimum Percent of Voting Tokens Needed to Pass Funding Requests

This shows how the minimum percent of tokens needed to pass proposals after 2 weeks varies with the percent of the Common Pool funds being requested.

Example Funding Request Data

Proposal Requested Amount (wxDAI) Common Pool (wxDAI) Effective supply (TEC) Tokens Needed To Pass (TEC)
1 1,000 100,000 1,500,000 9259
2 5,000 100,000 1,500,000 30000
3 25,000 100,000 1,500,000 Not possible
4 1,000 750,000 1,500,000 7704
5 5,000 750,000 1,500,000 8609
6 25,000 750,000 1,500,000 16874

FORK THIS PROPOSAL (link)

Parameter Definitions

Token Freeze and Token Thaw

  • Token Freeze: 13 weeks, meaning that 100% of TEC tokens minted for Hatchers will remain locked from being sold or transferred for 13 weeks. They can still be used to vote while frozen.
  • Token Thaw: 65 weeks, meaning the Hatchers frozen tokens will start to become transferable at a steady rate starting at the end of Token Freeze and ending 65 weeks later.
  • Opening Price: 1.55 wxDAI, meaning for the initial buy, the first TEC minted by the Augmented Bonding Curve will be priced at 1.55 wxDAI making it the price floor during the Token Freeze.

Augmented Bonding Curve (ABC)

  • Commons Tribute: 60.00%, which means that 60.00% of the Hatch funds (756734.14 wxDAI) will go to the Common Pool and 40.00% (504489.43 wxDAI) will go to the ABC's Reserve.
  • Entry Tribute: 2.00% meaning that from every BUY order on the ABC, 2.00% of the order value in wxDAI is subtracted and sent to the Common Pool.
  • Exit Tribute: 5.00% meaning that from every SELL order on the ABC, 5.00% of the order value in wxDAI is subtracted and sent to the Common Pool.

Tao Voting

  • Support Required: 75%, which means 75% of all votes must be in favor of a proposal for it to pass.
  • Minimum Quorum: 10%, meaning that 10% of all tokens need to have voted on a proposal in order for it to become valid.
  • Vote Duration: 5 day(s), meaning that eligible voters will have 5 day(s) to vote on a proposal.
  • Delegated Voting Period is set for 4 day(s), meaning that Delegates will have 4 day(s) to use their delegated voting power to vote on a proposal.
  • Quiet Ending Period: 2 day(s), this means that 2 day(s) before the end of the Vote Duration, if the vote outcome changes, the Quiet Ending Extension will be triggered.
  • Quiet Ending Extension: 1 day(s), meaning that if the vote outcome changes during the Quiet Ending Period, an additional 1 day(s) will be added for voting.
  • Execution Delay: 1 day(s), meaning that there is an 1 day delay after the vote is passed before the proposed action is executed.

Conviction Voting

  • Conviction Growth: 5 day(s), meaning that voting power will increase by 50% every 5 days that they are staked behind a proposal, so after 10 days, a voters voting power will have reached 75% of it's maximum capacity.
  • Minimum Conviction: 0.5%, this means that to pass any funding request it will take at least 0.5% of the actively voting TEC tokens.
  • The Spending Limit: 10.0%, which means that no more than 10.0% of the total funds in the Common Pool can be funded by a single proposal.

Advanced Settings*

Parameter Value
HNY Liquidity 100 wxDAI
Garden Liquidity 1 TEC
Virtual Supply 1 TEC
Virtual Balance 1 wxDAI
Transferable True
Token Name Token Engineering Commons
Token Symbol TEC
Proposal Deposit 200 wxDAI
Challenge Deposit 400 wxDAI
Settlement Period 5 days
Minimum Effective Supply 1.0%
Hatchers Rage Quit 60000 wxDAI
Initial Buy 250000 wxDAI

*Learn more about Advanced Settings on the TEC forum

FORK THIS PROPOSAL (link)

Sign up for free to join this conversation on GitHub. Already have an account? Sign in to comment
Labels
None yet
Projects
None yet
Development

No branches or pull requests

1 participant