What is the overall Commons Configuration strategy?
This is merging of The Bolshevik's Gambit fork with Lower Min. Quorum #72's Token Thaw and Tao Voting (with a few tweaks) and Goldilocks' Million Dollar Entry into Orogeny #71 CV and ABC with a few tweaks
So shout out to Lauren, Mitch, Nate, Zep and Tam who all influenced this config.
This Proposal expects a strong community that can coordinate to pass both Tao Voting and Conviction Voting Proposals. The real things to note about this proposal is the ~1 million dollar Common Pool, the Strategy around the Entry and Exit Tributes, the 5 day voting period, $1 opening price and the lowish Reserve Ratio.
This proposal has a high entry tribute to attract value aligned participants that missed the Hatch and are smart enough to see that the low reserve ratio will still allow them to make a profit if they get in early. With this strategy, we should change the Tributes every month so that they gradually go from 22% and 2% to 2% and 12% in 5 months. This could be done every month by decreasing the Entry Tribute by 4% and increasing the Exit Tribute by 2%. This is important for our long term growth so that if the price is going down, more money is flowing into the Common Pool so that as a community we can provide more value to our token holders and the TE community.
If we are smart, we should make an agreement to set the Entry Tribute to 100% when we reach a 40 Mil Market Cap so that the bonding curve can act as a parachute if the Price crashes but we stop printing TEC once we are large enough and don't need the liquidity protection of the bonding curve.
The CV Params are set so that it takes a week to pass any serious proposal with 15-20% of token holders sitting with their tokens behind the proposal. This will make the Token holders have to coordinate (without having to talk) to pass proposals.... I can imagine that we will want to post the Passing and Leading proposals that have a lot of voting power behind them every week to aid voters in coordinating around advancing token engineering.
This Proposal expects a strong community that can coordinate to pass both Tao Voting and Conviction Voting Proposals. The real things to note about this proposal is the >1 million dollar Common Pool, the Strategy around the Entry and Exit Tributes, and the low Reserve Ratio.
This proposal has a high entry tribute to attract value aligned participants that missed the Hatch and are smart enough to see that the low reserve ratio will still allow them to make a profit if they get in early. With this strategy, we should change the Tributes every month so that they gradually go from 26% and 0% to 2% and 12% in 6 months. This could be done every month by decreasing the Entry Tribute by 4% and increasing the Exit Tribute by 2%. This is important for our long term growth so that if the price is going down, more money is flowing into the Common Pool so that as a community we can provide more value to our token holders and the TE community.
If we are smart, we should make an agreement to set the Entry Tribute to 100% when we reach a ~40 Mil Market Cap and have some alternative funding streams and methods of liquidity secured so that the bonding curve can act as a parachute if the Price crashes but we stop printing TEC once we are large enough and don't need the liquidity protection of the bonding curve.
The CV Params are set so that it takes a week to pass any serious proposal with 15-20% of token holders sitting with their tokens behind the proposal. This will make the Token holders have to coordinate (without having to talk) to pass proposals.... I can imagine that we will want to post the Passing and Leading proposals that have a lot of voting power behind them every week to aid voters in coordinating around advancing token engineering.
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%
1.00 wxDAI
6 months
0.00%
1.00 wxDAI
9 months
25.00%
0.75 wxDAI
1 year
50.00%
0.50 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
Token Freeze: 26 weeks, meaning that 100% of TEC tokens minted for Hatchers will remain locked from being sold or transferred for 26 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 wxDAI, meaning for the initial buy, the first TEC minted by the Augmented Bonding Curve will be priced at 1 wxDAI making it the price floor during the Token Freeze.
Strategy:
We have supreme confidence in our plan to create an amazing Commons and generate value. 6 months Freeze is a reasonable amount of time in crypto to hold tokens. That being said, a year of Thaw means that TEC holder's will be very unikely to sell their Tokens for a while since so little will be available. If they intend to sell they will wait and speculate a bit longer.
By setting the price at $1 we recognize that there are more TEC friends out there that could try to jump in ASAP.
This low opening price is fine because Hatcher's are true believers in the cause, in the collective well being of the Commons and spreading its ideology.
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.
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: 75.00%, which means that 75.00% of the Hatch funds (945917.68 wxDAI) will go to the Common Pool and 25.00% (315305.89 wxDAI) will go to the ABC's Reserve.
Entry Tribute: 22.00% meaning that from every BUY order on the ABC, 22.00% of the order value in wxDAI is subtracted and sent to the Common Pool.
Exit Tribute: 2.00% meaning that from every SELL order on the ABC, 2.00% of the order value in wxDAI is subtracted and sent to the Common Pool.
Strategy:
Even with a low Reserve (~315k) the reserve ratio is above 15%. This allows for the price to grow at a fast rate and give people that crypto feel... but isn't a DAO casino, not the slightest. The 250k initial buy only changes the price 50 cents. Giving the hatchers a 50% profit out the gate.
A 5k buy changes the price 1 penny.
A 20k Buy changes the price 4 cents and experience 1% slippage
This is just right!
The Commons Tribute and Entry Tribute are set so that there is about ~1 mil in the Common Pool after the initial buy.
This gives us a nice runway to get a jumpstart on Advancing Token Engineering!
The Entry Tribute (22%) is extremely high.. but this is the only way to get tokens to start so I think it will not dissuade early contributors that are value aligned and if this proposal is chosen we should plan to reduce the entry tribute 4% and raise the exit tribute 2% every month until the tributes end up as 2% entry and 12% exit after 5 months.
If we lower it 4% a month... we only have to sell ~40k worth of tokens every month for it to make sense to speculate on the token. I think this is very doable.
The Reserve Ratio is low but it's not a DAO Casino and with a $1 opening price we can have a normal lockup time and room to grow.
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
5 days
7 days
9 days
Time to Review a Delegates Vote
2 days
4 days
6 days
Time to Execute a Passing Proposal
5.5 days
7.5 days
9.5 days
Support Required: 85%, which means 85% 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 3 day(s), meaning that Delegates will have 3 day(s) to use their delegated voting power to vote on a proposal.
Quiet Ending Period: 3 day(s), this means that 3 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: 0.5 day(s), meaning that there is an 0.5 day delay after the vote is passed before the proposed action is executed.
Strategy:
Revolutions need to be agile as well. For this we should aim for high consensus, short-er duration.
Tao Voting might not interest everyone, but that's why we have delegates. It should be reasonable to expect high turnout for votes since voting power should either be used or delegated, not sitting idle, this is not how revolutions are made! That said, 10% is fair.
A quick-er vote duration means we could wrap up and execute votes within 5.5 days. If there's any contention 2 days are added to the vote so we have ample time for more participation.
A 12 hour minimum execution delay is given that there is a 3 day quiet ending period so people won't be surprised by an outcome... and anyone who REALLY cares would never be asleep after the outcome is certain but before it's execution.
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
17851
2
5,000
100,000
1,500,000
44081
3
25,000
100,000
1,500,000
Not possible
4
1,000
750,000
1,500,000
15338
5
5,000
750,000
1,500,000
16816
6
25,000
750,000
1,500,000
28757
Conviction Growth: 60 day(s), meaning that voting power will increase by 50% every 60 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: 1.0%, this means that to pass any funding request it will take at least 1.0% of the actively voting TEC tokens.
The Spending Limit: 12.0%, which means that no more than 12.0% of the total funds in the Common Pool can be funded by a single proposal.
Strategy:
Goldilocks' Million Dollar Entry into Orogeny CV Params
With the conviction voting module, I set the Spending Limit at 12% ensuring that we can fund 40k-70k proposals if we need to given our large Common Pool (it would take 26.7% of the tokens 2 weeks to pass a 48k proposal). These are of course inspired by Nate's Orogeny params with a low Minimum Conviction (1%) and high Conviction Growth (60 days) ensures that it takes a lot of tokens to pass proposals quickly but minority token holders with patience and persistence can still fund projects and that the community has an opportunity to move their tokens between proposals without impacting their conviction too quickly.
Most proposals asking for 1-4% of the Common Pool will take 8-15% of tokens holding conviction for 1-2 weeks to pass a proposal.
What is the overall Commons Configuration strategy?
This is merging of The Bolshevik's Gambit fork with Lower Min. Quorum #72's Token Thaw and Tao Voting (with a few tweaks) and Goldilocks' Million Dollar Entry into Orogeny #71 CV and ABC with a few tweaks
So shout out to Lauren, Mitch, Nate, Zep and Tam who all influenced this config.
This Proposal expects a strong community that can coordinate to pass both Tao Voting and Conviction Voting Proposals. The real things to note about this proposal is the ~1 million dollar Common Pool, the Strategy around the Entry and Exit Tributes, the 5 day voting period, $1 opening price and the lowish Reserve Ratio.
This proposal has a high entry tribute to attract value aligned participants that missed the Hatch and are smart enough to see that the low reserve ratio will still allow them to make a profit if they get in early. With this strategy, we should change the Tributes every month so that they gradually go from 22% and 2% to 2% and 12% in 5 months. This could be done every month by decreasing the Entry Tribute by 4% and increasing the Exit Tribute by 2%. This is important for our long term growth so that if the price is going down, more money is flowing into the Common Pool so that as a community we can provide more value to our token holders and the TE community.
If we are smart, we should make an agreement to set the Entry Tribute to 100% when we reach a 40 Mil Market Cap so that the bonding curve can act as a parachute if the Price crashes but we stop printing TEC once we are large enough and don't need the liquidity protection of the bonding curve.
The CV Params are set so that it takes a week to pass any serious proposal with 15-20% of token holders sitting with their tokens behind the proposal. This will make the Token holders have to coordinate (without having to talk) to pass proposals.... I can imagine that we will want to post the Passing and Leading proposals that have a lot of voting power behind them every week to aid voters in coordinating around advancing token engineering. This Proposal expects a strong community that can coordinate to pass both Tao Voting and Conviction Voting Proposals. The real things to note about this proposal is the >1 million dollar Common Pool, the Strategy around the Entry and Exit Tributes, and the low Reserve Ratio.
This proposal has a high entry tribute to attract value aligned participants that missed the Hatch and are smart enough to see that the low reserve ratio will still allow them to make a profit if they get in early. With this strategy, we should change the Tributes every month so that they gradually go from 26% and 0% to 2% and 12% in 6 months. This could be done every month by decreasing the Entry Tribute by 4% and increasing the Exit Tribute by 2%. This is important for our long term growth so that if the price is going down, more money is flowing into the Common Pool so that as a community we can provide more value to our token holders and the TE community.
If we are smart, we should make an agreement to set the Entry Tribute to 100% when we reach a ~40 Mil Market Cap and have some alternative funding streams and methods of liquidity secured so that the bonding curve can act as a parachute if the Price crashes but we stop printing TEC once we are large enough and don't need the liquidity protection of the bonding curve.
The CV Params are set so that it takes a week to pass any serious proposal with 15-20% of token holders sitting with their tokens behind the proposal. This will make the Token holders have to coordinate (without having to talk) to pass proposals.... I can imagine that we will want to post the Passing and Leading proposals that have a lot of voting power behind them every week to aid voters in coordinating around advancing token engineering.
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:
We have supreme confidence in our plan to create an amazing Commons and generate value. 6 months Freeze is a reasonable amount of time in crypto to hold tokens. That being said, a year of Thaw means that TEC holder's will be very unikely to sell their Tokens for a while since so little will be available. If they intend to sell they will wait and speculate a bit longer.
By setting the price at $1 we recognize that there are more TEC friends out there that could try to jump in ASAP.
This low opening price is fine because Hatcher's are true believers in the cause, in the collective well being of the Commons and spreading its ideology.
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:
Even with a low Reserve (~315k) the reserve ratio is above 15%. This allows for the price to grow at a fast rate and give people that crypto feel... but isn't a DAO casino, not the slightest. The 250k initial buy only changes the price 50 cents. Giving the hatchers a 50% profit out the gate.
A 5k buy changes the price 1 penny. A 20k Buy changes the price 4 cents and experience 1% slippage
This is just right!
The Commons Tribute and Entry Tribute are set so that there is about ~1 mil in the Common Pool after the initial buy.
This gives us a nice runway to get a jumpstart on Advancing Token Engineering!
The Entry Tribute (22%) is extremely high.. but this is the only way to get tokens to start so I think it will not dissuade early contributors that are value aligned and if this proposal is chosen we should plan to reduce the entry tribute 4% and raise the exit tribute 2% every month until the tributes end up as 2% entry and 12% exit after 5 months.
If we lower it 4% a month... we only have to sell ~40k worth of tokens every month for it to make sense to speculate on the token. I think this is very doable.
The Reserve Ratio is low but it's not a DAO Casino and with a $1 opening price we can have a normal lockup time and room to grow.
Module 3: Tao Voting
Tao Voting Timeline From Proposal To Execution
Data
Strategy:
Revolutions need to be agile as well. For this we should aim for high consensus, short-er duration.
Tao Voting might not interest everyone, but that's why we have delegates. It should be reasonable to expect high turnout for votes since voting power should either be used or delegated, not sitting idle, this is not how revolutions are made! That said, 10% is fair.
A quick-er vote duration means we could wrap up and execute votes within 5.5 days. If there's any contention 2 days are added to the vote so we have ample time for more participation.
A 12 hour minimum execution delay is given that there is a 3 day quiet ending period so people won't be surprised by an outcome... and anyone who REALLY cares would never be asleep after the outcome is certain but before it's execution.
Module 4: Conviction Voting
Minimum Percent of Voting Tokens Needed to Pass Funding Requests
Data
Strategy:
Goldilocks' Million Dollar Entry into Orogeny CV Params
With the conviction voting module, I set the Spending Limit at 12% ensuring that we can fund 40k-70k proposals if we need to given our large Common Pool (it would take 26.7% of the tokens 2 weeks to pass a 48k proposal). These are of course inspired by Nate's Orogeny params with a low Minimum Conviction (1%) and high Conviction Growth (60 days) ensures that it takes a lot of tokens to pass proposals quickly but minority token holders with patience and persistence can still fund projects and that the community has an opportunity to move their tokens between proposals without impacting their conviction too quickly.
Most proposals asking for 1-4% of the Common Pool will take 8-15% of tokens holding conviction for 1-2 weeks to pass a proposal.
FORK THIS PROPOSAL (link)
*Advanced Settings
*Learn more about Advanced Settings on the TEC forum
FORK THIS PROPOSAL (link)