[Community Review] Pre-discussion: 5th NumbersDAO voting topic community review

[Steffdarz]

Topic: Should Numbers allocate a portion of Team Token to the Ecosystem??

Overview

Today, we gather once again to discuss an important topic that lies at the heart of our decentralized ecosystem. The decision we make in this regard will undoubtedly have far-reaching implications for our DAO and its members. Should Numbers Protocol shift a portion of the Team token, and allocate it to the Ecosystem?

The purpose of this proposal is to deliberate upon the idea of distributing a portion of the Team Tokens to the ecosystem, fostering a stronger bond between the core development team and the broader community. By doing so, we aim to bolster the network's decentralization, encourage active participation, and create an environment that nurtures innovation, collaboration, and sustainable growth.

In the following sections, we will outline the rationale behind this proposal, detail its potential benefits and address concerns that may come up if this proposal is approved. We aim to provide you with an impartial analysis that equips you with the necessary information to understand the dialogue that will take place during the upcoming DAO meeting. Remember, this article is not meant to sway your opinion but rather to foster dialogue and broaden our collective understanding.

I encourage each of you to share your perspectives, raise pertinent questions, and engage in open dialogue, as it is your active participation that strengthens the very fabric of our DAO.

Token Allocations:

The allocation of tokens plays a pivotal role in the growth of any projects. As of the present, our token distribution stands at :

17.5% Tokens for the Team & Advisors 22.8% Tokens for the Ecosystem

While the progress of Numbers Protocol is great so far, we believe that a shift in token allocation will create new opportunities to strengthen and gain more partnership on the platform. In that respect, we propose to shift 2.5% of the Team token to the Ecosystem, this will result in :

15.0% Tokens for the Team & Advisors 25.3% Tokens for the Ecosystem

Here we’ll outline the pros and cons that come with this shift :

Pros

• By increasing the Ecosystem's token allocation, we create a more decentralized governance structure. A larger stake in the hands of the community fosters a stronger sense of responsibility and accountability for the DAO's decisions.
• With a larger Ecosystem allocation, we expect an expanded network effect. A vibrant and active community attracts more users, developers, and investors. This will drive more partnership, and bring organic growth and enhance the value of our native token.
• Empowering the Ecosystem with a significant share of tokens ensures its resilience and long-term viability.
• Releasing a portion of Team Tokens to the Ecosystem may lead to increased liquidity in the token markets. Improved liquidity can benefit the ecosystem by providing easier access for investors, reducing volatility, and potentially attracting institutional interest.

Cons

• A lower allocation for the Team could reduce the core team's immediate influence on governance. Striking the right balance is crucial to preserve the team's ability to guide the project while embracing a decentralized approach.
• Depending on the specific allocation plan, investors and the broader market may perceive a large allocation of Team Tokens to the ecosystem as a sign of potential selling pressure in the future. This perception could negatively impact token prices in the short term.
• If the distribution of Team Tokens to the ecosystem is not carefully structured, it could lead to misaligned incentives. For example, if tokens are given without any criteria or requirements for active participation, it may not effectively drive the desired engagement and contributions.
• Token distributions, especially to individuals or entities beyond the core team, might raise regulatory concerns depending on the jurisdiction. Ensuring compliance with relevant regulations is crucial to avoid legal challenges.

Conclusion

In summary, allocating a portion of Team Tokens to the ecosystem can have significant benefits, such as promoting decentralization, better token utilization, driving network growth for potential partnership, and increased liquidity of NUM. However, it also comes with challenges related to potential dilution of control, market perception, and regulatory compliance. Properly addressing these considerations through thoughtful planning and community consensus will be essential for the success of the proposed allocation.

Numbers Protocol remains neutral in this discussion. We encourage all stakeholders to engage in open dialogue, share their perspectives.

Together, let us shape the future of Numbers Protocol as we work towards a more decentralized and inclusive ecosystem, driven by the collective wisdom of our community. Your voice matters, and we eagerly anticipate the outcome of this crucial decision.

Thank you for being an integral part of the Numbers Protocol journey!

Entering Community Review

Just like previous DAO meetings topics, this Numbers Governance Proposal will undergo community review until August 28. During this time, we encourage the Numbers community to share their thoughts and concerns on GitHub issues and discuss openly on our many social channels regarding this proposal. We look forward to hearing your feedback!

┆Issue is synchronized with this Asana task by Unito

[Lasheron]

This idea in the proposal is really interesting. It's cool to see the team being open and asking us what we think about giving some team tokens to the ecosystem. What I'm thinking is, for now, let's keep those 2.5% of team tokens to the side. Then later on, we can decide how to use them for the team and the ecosystem. Since both the allocation strategies have their distinct merits and drawbacks, taking this measured approach can offer a balanced and adaptable solution.

[Probiduc]

The proposal to allocate a portion of Team Tokens to the Ecosystem in Numbers Protocol brings both potential benefits and challenges. Increasing the Ecosystem's token allocation could foster a decentralized governance structure, attract more users, developers, and investors, enhance the token's value, and improve liquidity. However, it's important to strike a balance to maintain the core team's influence on governance, address market perception concerns, ensure active participation, and adhere to regulatory compliance. Open dialogue and careful planning will be crucial for the success of this proposed allocation.

[Profkingkeys]

I think that allocating a portion of the team token to the ecosystem could have both positive and negative effects on the project and its community. On one hand, it could increase the incentives for users to join and contribute to the decentralized photo network, and also align the interests of the team and advisors with the long-term vision and goals of the project. On the other hand, it could reduce the motivation and reward for the team and advisors who have worked hard to build and launch the initial version of the network, and also create some dissatisfaction or resentment among the early investors or partners who have supported the project. So let the team and advisors try and understand with the community's decision, that this is for the growth of the project and it'll also profit them in the long-term when the project becomes very popular and recognized. So it's a "Yes"

[ARONBARBOZA]

The concept presented in the proposal is quite intriguing.

A potential outcome of increasing the token allocation for the ecosystem could be the cultivation of a decentralized governance system. This action might also draw in a larger user base, more developers, and increased investor interest, thereby boosting the token's value and liquidity. I'm pleased to observe the team's commitment to contribute their personal tokens to the ecosystem allocation.

I have strong confidence that this will result in a favorable ecosystem conducive to growth in various aspects. Therefore, I'm in favor of the proposal.

[letsdrivethefuture]

Firstly, I'd like to commend the team for taking this transparent and inclusive approach to such a pivotal decision. This is exactly the kind of proactive engagement that makes the Numbers Protocol stand out.

On the proposal, I have mixed feelings. While I am a strong advocate for decentralization and believe that enhancing the ecosystem's token allocation can indeed foster more active participation, I do harbor some concerns.

Team Motivation: While 2.5% might not seem like a significant reduction, we need to consider the long-term motivation and commitment of the team. These tokens can act as an incentive for the core team and advisors to stay engaged, drive innovation, and steer the project towards success. Reducing this allocation might, in some ways, diminish that incentive.

Regulatory Concerns: The point on potential regulatory challenges is crucial. Before any shift in allocation occurs, it's essential to ensure that the reallocation won't inadvertently place Numbers Protocol in a precarious legal position.

Ecosystem Engagement: While increasing the Ecosystem's allocation is a noble endeavor, I believe we should also have mechanisms in place to ensure these tokens are used actively and constructively. Perhaps some form of staking or community-driven projects could be a part of this allocation to ensure these tokens are not merely held but actively used to bolster the protocol.

Market Perception: We should consider how this decision will be viewed externally. Will it be seen as a move towards greater decentralization and community engagement, or will it be misconstrued as the team offloading its stake? Clear communication around this decision is crucial.

In conclusion, while I'm not entirely against the proposal, I believe we should tread carefully. It's essential to weigh the short-term benefits of this reallocation against the potential long-term implications. Whatever decision we make, it's crucial that it's in the best interest of the Numbers Protocol and its long-term vision.

I'm looking forward to the upcoming DAO meeting!

[fredlex]

No doubt a shift in token allocation is a welcomed idea as it comes with lots of positivity to foster community growth, improved liquidity, encourages decentralization, etc. However exciting these pro may be, I will however urge the team not to over look the disadvantages of this action. For the best interest of everyone. It will be nice to maintain a striking balance within the ecosystem and a decision should be made for the best interest of everyone.

[Steffdarz]

Market Perception: We should consider how this decision will be viewed externally. Will it be seen as a move towards greater decentralization and community engagement, or will it be misconstrued as the team offloading its stake? Clear communication around this decision is crucial.

@letsdrivethefuture Thanks for your insight! But let me clarify a point there.

The mentioned token will be allocated to the ecosystem without the team & advisor receiving any compensation. So it's not like the team is offloading any stake for the project, if anything, you can consider the team & advisors 'donate' their portion to the ecosystem instead.

[Steffdarz]

Thanks for everyone's participation in this community review, per the schedule determined before, we'll close this community review and proceed with DAO meeting in September, the recap of this community review will be posted in our wiki 2 days later. Once again thank you for being a part of Numbers DAO, and we'll meet again in the DAO meeting