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proposal-2210-1-final-supply

Proposal Type: Signalling​
Champion: ricoflan​
Date: 11 October 2022​
State: Draft / Work In Progress​

Context​

This proposal relates to the biggest opportunity 0L has. With this proposal, the community is in a unique position to create a balanced, equitable approach to sustainability in which all participants are of a single class: All participants are workers. 

The current 0L token issuance schema is dramatically diluting workers while enriching the validators via issuance of new tokens each epoch (i.e., inflation). Anyone who has earned bounties, or engineering funds, have had their value reduced significantly by inflation across the last 6 months. This needs to change.

The challenge to stopping inflation is how to preserve incentives for validators without ongoing issuance. This proposal seeks to stop inflation by ending issuance while providing a means to fund validator incentives for the medium to long term.

Synopsis​

This proposal seeks to scaffold a permanently deflationary coin. There are three parts to the proposal: (1) stop issuance; (2) rebase the token; (3) create and fund an Infrastructure Escrow community wallet to provide validator rewards. The proposal asks for a single vote on all three parts; the three parts are interconnected and dependent.

  1. Stop Issuance: The first part of this proposal is the simplest: Stop issuance of new tokens.
  2. Rebase the Token: In order to fund the Infrastructure Escrow wallet (see, #3 below), there must be some form of dilution. The simplest, and most regulatory compliant way is to rebase the existing token by splitting each coin by approximately 5 (final calculations TBD) such that the total final supply is 10B coins. This in effect expands significantly the supply in a one time action; all account holders will have a higher account balance after the rebasing. (Note that this proposal only establishes a mandate to rebase; the exact methodology will be the subject of a separate, subsequent governance action if this passes.)
  3. Create and Fund the Infrastructure Escrow community wallet: A new community wallet will be created to serve as an escrow for future validator rewards. This wallet will be funded from the tokens created by the rebasing of the token (see #2, above).  (Note that this proposal only establishes a mandate to create and fund; the exact methodology will be the subject of a separate, subsequent governance action if this passes.)

All three actions will be included in the Version 6 upgrade to the Protocol.

Impact of Voting YES on this Proposal​

A vote of YES on this proposal will signal to the Engineering Team and the Validator set the community’s desire to enact the following changes in the Version 6 Protocol Upgrade:

  1. Stop issuance of tokens
  2. Rebase the token using a formula to be determined in subsequent governance action
  3. Create a new community wallet named Infrastructure Escrow
  4. Transfer into that wallet a number of tokens to be determined by subsequent governance action
  5. Note the impact of the passage of this proposal on token holders in multi-fold:
    1. There will be more tokens in the system.
    2. All wallets will show higher balances.
    3. A formula will be devised to allocate a portion of those tokens from all wallets to the new Infrastructure Escrow. That formula will need to be determined in subsequent governance actions.

Impact of Voting NO on this Proposal​

A vote of NO on this proposal will reject all parts of this proposal and issuance-driven inflation will remain in effect as it is currently.

  • The author(s) believe that a clear path to a mission-aligned revision of our tokenomics is essential for the community, so in the event that you choose to vote against this proposal, we welcome you to engage with the community to collaborate on the creation of a policy that is acceptable to the community at large.

Special Notes:​

  • Note that this is a signalling proposal and therefore does not directly impact the chain; subsequent action is required to implement these changes.
  • The outcomes of this proposal can be modified by the community via a subsequent proposal and vote

Reference Materials:​

  • See also, Proposal 2210-8, Infrastructure Escrow Funding

Notes on Process

  • This document is a Draft / Work in Progress. It will change until marked as FINAL. The closing date for revisions is 15 October.
  • Publication here is an invitation for community collaboration and co-creation.
  • To engage on this content, visit the #governance-proposals channel on the 0L Discord (link at bottom right)
  • Once this Proposal is finalized, it will be the subject of Voting on the Radical X Change platform. If you do not yet have credentials, visit the #rxc-voice-discussion channel on the 0L Discord and make a request to join.
  • Voting opens 17 Oct and closes 22 Oct