What is the overall Commons Configuration strategy?
After the Hatch, a bird needs to "Fledge" before it can fly. This proposal imagines a year of testing and learning that is heavily backed by impact investors before it eases into more market forces in year two, when the params would be significantly retooled.
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.
Data
Duration
% of Tokens Released
Price Floor of Token
3 months
0.00%
1.50 wxDAI
6 months
0.00%
1.50 wxDAI
9 months
0.00%
1.50 wxDAI
1 year
0.00%
1.50 wxDAI
1.5 years
50.00%
0.75 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
Token Freeze: 52 weeks, meaning that 100% of TEC tokens minted for Hatchers will remain locked from being sold or transferred for 52 weeks. They can still be used to vote while frozen.
Token Thaw: 52 weeks, meaning the Hatchers frozen tokens will start to become transferable at a steady rate starting at the end of Token Freeze and ending 52 weeks later.
Opening Price: 1.5 wxDAI, meaning for the initial buy, the first TEC minted by the Augmented Bonding Curve will be priced at 1.5 wxDAI making it the price floor during the Token Freeze.
Strategy:
A $1.50 opening price gives a nice discount to Hatchers and contributors, while assuming early post-upgrade TEC purchasers are mission-driven thus less price-sensitive.
Module 2: Augmented Bonding Curve (ABC)
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.
Data
Tx
Reserve
Total Supply
Price
Amount In
Tribute
Amount Out
New Price
Slippage
0
252244.71
1956421.69
1.5
250000.00 wxDAI
75000.0
90652.31 TEC
2.43
22.30%
1
427244.71
2047073.99
2.43
5000.00 wxDAI
1500.0
1436.06 TEC
2.45
0.37%
2
430744.71
2048510.05
2.45
100000.00 wxDAI
30000.0
26686.38 TEC
2.81
6.74%
3
500744.71
2075196.43
2.81
3000.00 TEC
2507.24
5850.22 wxDAI
2.76
0.77%
4
492387.25
2072196.43
2.76
5000.00 wxDAI
1500.0
1261.98 TEC
2.78
0.32%
5
495887.25
2073458.42
2.78
100000.00 wxDAI
30000.0
23667.74 TEC
3.14
5.92%
6
565887.25
2097126.15
3.14
3000.00 TEC
2804.01
6542.68 wxDAI
3.09
0.76%
7
556540.57
2094126.15
3.09
100000.00 wxDAI
30000.0
21434.11 TEC
3.45
5.33%
8
626540.57
2115560.26
3.45
3000.00 TEC
3077.7
7181.30 wxDAI
3.39
0.75%
9
616281.57
2112560.26
3.39
1.00 TEC
1.02
2.38 wxDAI
3.39
0.00%
10
616278.18
2112559.26
3.39
100000.00 wxDAI
30000.0
19626.23 TEC
3.74
4.84%
11
686278.18
2132185.5
3.74
750000.00 wxDAI
225000.0
106709.38 TEC
6.29
23.89%
NOTE:
We're very bullish on TEC so we provide the BUY scenario at launch to compare proposals... to explore this proposal's ABC further Click the link below to see their parameters in your dashboard, be warned this will clear any data you have in your dashboard:
Commons Tribute: 80.00%, which means that 80.00% of the Hatch funds (1008978.86 wxDAI) will go to the Common Pool and 20.00% (252244.71 wxDAI) will go to the ABC's Reserve.
Entry Tribute: 30.00% meaning that from every BUY order on the ABC, 30.00% of the order value in wxDAI is subtracted and sent to the Common Pool.
Exit Tribute: 0.00% meaning that from every SELL order on the ABC, 0.00% of the order value in wxDAI is subtracted and sent to the Common Pool.
Strategy:
The 80% initial tribute makes us unabashedly an impact investment. Impact investors care about impact and don't want to pay to fund reserves to lower the volatility. Another effect of the low reserve is high slippage, which makes it expensive and thus unattractive for non-aligned, purely speculative whales to suddenly buy up large shares in ways that might harm the mission and the community. Impact investors will care less about slippage, since that money goes to the TEC, which they are backing for impact. Oh, did I mention it's a million dollar fund. Nice.
Yeah, 30% entry tribute is a big cut. But remember, we're an impact investment. We pitch that the 30% is an investment that they make in public goods and we take it off the top while they're still excited. There's no exit tribute. We get the investment up front, not when they're trying to get out and may have reasons for leaving anyway.
Plus we don't want contributors to have to pay a "tax" when they cash on their contributions of effort.
This proposal assumes that the entry tribute does not impact contributors (for at least as long are our initial buy-in rewards funding lasts).
A large tribute does create risk of arbitrage, so this proposal envisions restricting trading in secondary liquidity markets -- just for the first year, while we "fledge."
Module 3: Tao Voting
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.
Data
# of Quiet Ending Extensions
No Extensions
With 1 Extension
With 2 Extensions
Time to Vote on Proposals
10 days
12 days
14 days
Time to Review a Delegates Vote
5 days
7 days
9 days
Time to Execute a Passing Proposal
11 days
13 days
15 days
Support Required: 88%, which means 88% of all votes must be in favor of a proposal for it to pass.
Minimum Quorum: 40%, meaning that 40% of all tokens need to have voted on a proposal in order for it to become valid.
Vote Duration: 10 day(s), meaning that eligible voters will have 10 day(s) to vote on a proposal.
Delegated Voting Period is set for 5 day(s), meaning that Delegates will have 5 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: 2 day(s), meaning that if the vote outcome changes during the Quiet Ending Period, an additional 2 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.
Strategy:
My quick analysis of TEC Snapshot votes is that we've averaged 29% participation (by tokens, not people). We should be able to achieve higher than that, and should push for high community participation, on votes affecting our essential economic design.
These votes are on the longish side but given the types of votes we're making under TAO voting, I think we need more time for community evaluation and discussion.
Module 4: Conviction Voting
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.
Data
Proposal
Requested Amount (wxDAI)
Common Pool (wxDAI)
Effective supply (TEC)
Tokens Needed To Pass (TEC)
1
1,000
100,000
1,500,000
80000
2
5,000
100,000
1,500,000
Not possible
3
25,000
100,000
1,500,000
Not possible
4
1,000
750,000
1,500,000
48156
5
5,000
750,000
1,500,000
64800
6
25,000
750,000
1,500,000
Not possible
7
15,000
1,000,000
1,500,000
115199
8
17,000
1,000,000
1,500,000
136105
9
2,500
1,000,000
1,000,000
34133
10
20,000
1,000,000
1,500,000
180000
11
20,000
50,000
1,500,000
Not possible
12
20,000
500,000
1,500,000
Not possible
Conviction Growth: 14 day(s), meaning that voting power will increase by 50% every 14 days that they are staked behind a proposal, so after 20 days, a voters voting power will have reached 75% of it's maximum capacity.
Minimum Conviction: 3.0%, this means that to pass any funding request it will take at least 3.0% of the actively voting TEC tokens.
The Spending Limit: 4.0%, which means that no more than 4.0% of the total funds in the Common Pool can be funded by a single proposal.
Strategy:
The 4% limit is designed to encourage milestones, and breaking projects up into smaller phases with deliverables that can be assessed by the community as they go -- especially in this first year. Assuming a million dollar pool, $40K should be the max and we want to encourage in one step.
At a conviction level of 3, funding proposals can be approved with 10X the amount requested sitting in conviction for one month. That sounds about the right flow and spend rate.
The bulk of the conviction matures within one month, which is perhaps a slower pace than we may have first imagined. But from the lens of Fledging, it is good to be deliberate as we learn to fly. We don't want to run out of funds too quickly. Conviction voting gets a lot harder when the pool shrinks!
What is the overall Commons Configuration strategy?
After the Hatch, a bird needs to "Fledge" before it can fly. This proposal imagines a year of testing and learning that is heavily backed by impact investors before it eases into more market forces in year two, when the params would be significantly retooled.
Advanced Settings Modified? Yes
FORK THIS PROPOSAL (link)
Summary
Module 1: Token Freeze & Token Thaw
Module 2: Augmented Bonding Curve
*This is an output. Learn more about the Reserve Ratio here.
Module 3: Tao Voting
Module 4: Conviction Voting
Module 1: Token Freeze and Token Thaw
Hatcher's TEC Release Schedule
Data
Strategy:
A $1.50 opening price gives a nice discount to Hatchers and contributors, while assuming early post-upgrade TEC purchasers are mission-driven thus less price-sensitive.
Module 2: Augmented Bonding Curve (ABC)
TEC Price vs ABC Reserve Holdings
Data
NOTE:
We're very bullish on TEC so we provide the BUY scenario at launch to compare proposals... to explore this proposal's ABC further Click the link below to see their parameters in your dashboard, be warned this will clear any data you have in your dashboard:
FORK THIS PROPOSAL (link)
ABC Configuration Table
Strategy:
The 80% initial tribute makes us unabashedly an impact investment. Impact investors care about impact and don't want to pay to fund reserves to lower the volatility. Another effect of the low reserve is high slippage, which makes it expensive and thus unattractive for non-aligned, purely speculative whales to suddenly buy up large shares in ways that might harm the mission and the community. Impact investors will care less about slippage, since that money goes to the TEC, which they are backing for impact. Oh, did I mention it's a million dollar fund. Nice.
Yeah, 30% entry tribute is a big cut. But remember, we're an impact investment. We pitch that the 30% is an investment that they make in public goods and we take it off the top while they're still excited. There's no exit tribute. We get the investment up front, not when they're trying to get out and may have reasons for leaving anyway.
Plus we don't want contributors to have to pay a "tax" when they cash on their contributions of effort.
This proposal assumes that the entry tribute does not impact contributors (for at least as long are our initial buy-in rewards funding lasts).
A large tribute does create risk of arbitrage, so this proposal envisions restricting trading in secondary liquidity markets -- just for the first year, while we "fledge."
Module 3: Tao Voting
Tao Voting Timeline From Proposal To Execution
Data
Strategy:
My quick analysis of TEC Snapshot votes is that we've averaged 29% participation (by tokens, not people). We should be able to achieve higher than that, and should push for high community participation, on votes affecting our essential economic design.
These votes are on the longish side but given the types of votes we're making under TAO voting, I think we need more time for community evaluation and discussion.
Module 4: Conviction Voting
Minimum Percent of Voting Tokens Needed to Pass Funding Requests
Data
Strategy:
The 4% limit is designed to encourage milestones, and breaking projects up into smaller phases with deliverables that can be assessed by the community as they go -- especially in this first year. Assuming a million dollar pool, $40K should be the max and we want to encourage in one step.
At a conviction level of 3, funding proposals can be approved with 10X the amount requested sitting in conviction for one month. That sounds about the right flow and spend rate.
The bulk of the conviction matures within one month, which is perhaps a slower pace than we may have first imagined. But from the lens of Fledging, it is good to be deliberate as we learn to fly. We don't want to run out of funds too quickly. Conviction voting gets a lot harder when the pool shrinks!
FORK THIS PROPOSAL (link)
*Advanced Settings
*Learn more about Advanced Settings on the TEC forum
FORK THIS PROPOSAL (link)