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General repository for technology proposals related to the Kin Ecosystem.
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Kin swap reward/subsidy to incentivize hodlers and developers to swap #3

Open Smpaar opened 4 years ago

Smpaar commented 4 years ago

Hi @kikengineering,

Really like the proposal you've put forward to move Kin to the Solana blockchain. Consider doing a 1Kin to 1.1Kin swap to incentivize and reward both hodlers and developers to move to the new blockchain. For every Kin3, Kin2, or Kin1 that is swapped for Kin4 deposit 1.1Kin in the new Kin4 wallet.

I came across this proposal on the subreddit and I wanted to highlight it. It would be a great incentive to get all the apps on the same blockchain, reward hodlers who've been involved in the project from the beginning, and incentivize anyone who still has Kin1 to move their Kin over to Kin4.

Of course the swap reward/subsidy could be any percentage but 1.1 Kin4 for every 1 Kin seems reasonable. It would roughly cost 150,000,000,000Kin if all Kin in circulation was swapped. The incentive might also need to be larger like 1.2 Kin or more if the goal is to move all Kin that's on every other chain to the new chain. Possibly do a tiered approach to incentivize a quick swap. Provide a larger reward/subsidy for the first month of the swap and progressively reduce the reward/subsidy as time goes on.

This reward/subsidy would be funded from the Kin Foundation grant budget. It would have no effect on the total supply.

Throwawayburros commented 4 years ago

It would be a great incentive to get all the apps on the same blockchain

If you want to sell your Kin on an exchange, you are required to swap. The Kin3 chain will be a ghost chain once all the apps and exchanges have moved over to Solana.

This reward/subsidy would be funded from the Kin Foundation grant budget

How does increasing the circulating supply of Kin by 10% help? You are advocating that users should get a 10% bonus for swapping without providing reasoning for backing it up. All it would do is shorten the timeline for all the coins to be fully disbursed, at a point in time where the market cannot handle that kind of volume. I suspect you are attempting to advocate for the opposite. You should want users to not swap. Right now the total supply is fixed at 100 trillion tokens. Imagine if 10 trillion tokens are not swapped. This means the supply is now 90 trillion. Smaller token supply with the same market demand = higher price.