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Stablebit #55

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tecparamsbot opened this issue Dec 18, 2021 · 0 comments
Open

Stablebit #55

tecparamsbot opened this issue Dec 18, 2021 · 0 comments

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@tecparamsbot
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What is the overall Commons Configuration strategy?

Targeting stability and a conviction compromise that is not too short or too long for maximum conviction. Stability all around

FORK THIS PROPOSAL (link)

Summary

Module 1: Token Freeze & Token Thaw

Parameter Value
Token Freeze 26 Weeks
Token Thaw 104 Weeks
Opening Price 1 wxDAI

Module 2: Augmented Bonding Curve

Parameter Value
Commons Tribute 48.00%
Entry Tribute 0.50%
Exit Tribute 3.00%
*Reserve Ratio 33.52%

*This is an output. Learn more about the Reserve Ratio here.

Module 3: Tao Voting

Parameter Value
Support Required 67%
Minimum Quorum 6%
Vote Duration 21 day(s)
Delegated Voting Period 7 day(s)
Quiet Ending Period 5 day(s)
Quiet Ending Extension 3 day(s)
Execution Delay 1 day(s)

Module 4: Conviction Voting

Parameter Value
Conviction Growth 21 day(s)
Minimum Conviction 3.0%
Spending Limit 10.0%

Module 1: Token Freeze and Token Thaw

Strategy:

1 dollar has a phycological lock in people's minds. It's also a reasonable price that helps keep stability. A half-year freeze with a two-year thaw further stabilizes the price further.

Parameter Value
Token Freeze 26 Weeks
Token Thaw 104 Weeks
Opening Price 1 wxDAI

Hatcher's TEC Release Schedule

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.

Token Release Timeline

Duration % of Tokens Released Price Floor of Token
3 months 0.00% 1.00 wxDAI
6 months 0.00% 1.00 wxDAI
9 months 12.50% 0.88 wxDAI
1 year 25.00% 0.75 wxDAI
1.5 years 50.00% 0.50 wxDAI
2 years 75.00% 0.25 wxDAI
3 years 100.00% 0.00 wxDAI
4 years 100.00% 0.00 wxDAI
5 years 100.00% 0.00 wxDAI

Module 2: Augmented Bonding Curve (ABC)

Strategy:

600,000 seems like a reasonable balance that can cover overhead for 12 months. High exit tributes could cause future instability as people might wait longer to exit due to exit tax which can possibly ward of natural price discovery in favor mass exodus. Barriers to entry should be low with a .5 entry tribute in favor no-hyped up buying.

Parameter Value
Commons Tribute 48.00%
Entry Tribute 0.50%
Exit Tribute 3.00%
*Reserve Ratio 33.52%

*This is an output. Learn more about the Reserve Ratio here.

Allocation of Funds wxDAI
Common Pool (Before Initial Buy) 605387.31
Reserve (Before Initial Buy) 655836.26
Common Pool (After Initial Buy) 606637.31
Reserve (After Initial Buy) 904586.26

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.

Example Transaction Data

Tx Reserve Total Supply Price Amount In Tribute Amount Out New Price Slippage
0 655836.26 1956421.69 1.0 250000.00 wxDAI 1250.0 222681.51 TEC 1.24 10.48%
1 904586.26 2179103.2 1.24 5000.00 wxDAI 25.0 4010.16 TEC 1.24 0.18%
2 909561.26 2183113.35 1.24 100000.00 wxDAI 500.0 77311.01 TEC 1.33 3.43%
3 1009061.26 2260424.36 1.33 3000.00 TEC 19.95 3969.79 wxDAI 1.33 0.13%

ABC Overview

Reserve (wxDai) Supply (TEC) Price (wxDai/TEC) Market cap
10,000 481,334 0.06 29,833.89
50,000 825,553 0.18 149,157.58
100,000 1,041,492 0.29 298,312.40
200,000 1,313,914 0.45 596,621.82
300,000 1,505,208 0.59 894,931.36
400,000 1,657,596 0.72 1,193,240.72
500,000 1,786,344 0.83 1,491,550.23
600,000 1,898,927 0.94 1,789,859.27
700,000 1,999,633 1.04 2,088,169.09
800,000 2,091,176 1.14 2,386,478.46
900,000 2,175,394 1.23 2,684,787.71
1,000,000 2,253,600 1.32 2,983,097.42
1,250,000 2,428,640 1.54 3,728,870.56
1,500,000 2,581,705 1.73 4,474,644.60
1,750,000 2,718,621 1.92 5,220,418.69
2,000,000 2,843,078 2.10 5,966,191.95
2,500,000 3,063,904 2.43 7,457,738.42
3,000,000 3,257,005 2.75 8,949,285.91
3,500,000 3,429,735 3.04 10,440,833.85
4,000,000 3,586,747 3.33 11,932,380.90
5,000,000 3,865,335 3.86 14,915,475.84
7,500,000 4,428,094 5.05 22,373,213.34
10,000,000 4,876,397 6.12 29,830,946.90
15,000,000 5,586,359 8.01 44,746,423.45
20,000,000 6,151,925 9.70 59,661,892.62
50,000,000 8,363,912 17.83 149,154,736.15
100,000,000 10,551,675 28.27 298,309,459.27

Module 3: Tao Voting

Strategy:

We see a 67% support required, this helps pass majority votes. higher than this might prohibit important votes from passing. 21 days gives adequate time for informed votes to evaluate and vote.

Parameter Value
Support Required 67%
Minimum Quorum 6%
Vote Duration 21 day(s)
Delegated Voting Period 7 day(s)
Quiet Ending Period 5 day(s)
Quiet Ending Extension 3 day(s)
Execution Delay 1 day(s)

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.

Timeline Data

# of Quiet Ending Extensions No Extensions With 1 Extension With 2 Extensions
Time to Vote on Proposals 21 days 24 days 27 days
Time to Review a Delegates Vote 14 days 17 days 20 days
Time to Execute a Passing Proposal 22 days 25 days 28 days

Module 4: Conviction Voting

Strategy:

Moderate spending limit to ensure important high budget measures pass. 3% conviction voting over 21 days set maximum conviction at 90 days, which is about half a quarter of life time in crypto, a compromise to ensure small balances are heard and things still move within a quarter year.

Parameter Value
Conviction Growth 21 day(s)
Minimum Conviction 3.0%
Spending Limit 10.0%

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.

Example Funding Request Data

Proposal Requested Amount (wxDAI) Common Pool (wxDAI) Effective supply (TEC) Tokens Needed To Pass (TEC)
1 1,000 100,000 1,500,000 55555
2 5,000 100,000 1,500,000 179999
3 25,000 100,000 1,500,000 Not possible
4 1,000 750,000 1,500,000 46224
5 5,000 750,000 1,500,000 51658
6 25,000 750,000 1,500,000 101249

FORK THIS PROPOSAL (link)

Parameter Definitions

Token Freeze and Token Thaw

  • 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: 104 weeks, meaning the Hatchers frozen tokens will start to become transferable at a steady rate starting at the end of Token Freeze and ending 104 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.

Augmented Bonding Curve (ABC)

  • Commons Tribute: 48.00%, which means that 48.00% of the Hatch funds (605387.31 wxDAI) will go to the Common Pool and 52.00% (655836.26 wxDAI) will go to the ABC's Reserve.
  • Entry Tribute: 0.50% meaning that from every BUY order on the ABC, 0.50% of the order value in wxDAI is subtracted and sent to the Common Pool.
  • Exit Tribute: 3.00% meaning that from every SELL order on the ABC, 3.00% of the order value in wxDAI is subtracted and sent to the Common Pool.

Tao Voting

  • Support Required: 67%, which means 67% of all votes must be in favor of a proposal for it to pass.
  • Minimum Quorum: 6%, meaning that 6% of all tokens need to have voted on a proposal in order for it to become valid.
  • Vote Duration: 21 day(s), meaning that eligible voters will have 21 day(s) to vote on a proposal.
  • Delegated Voting Period is set for 7 day(s), meaning that Delegates will have 7 day(s) to use their delegated voting power to vote on a proposal.
  • Quiet Ending Period: 5 day(s), this means that 5 day(s) before the end of the Vote Duration, if the vote outcome changes, the Quiet Ending Extension will be triggered.
  • Quiet Ending Extension: 3 day(s), meaning that if the vote outcome changes during the Quiet Ending Period, an additional 3 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.

Conviction Voting

  • Conviction Growth: 21 day(s), meaning that voting power will increase by 50% every 21 days that they are staked behind a proposal, so after 42 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: 10.0%, which means that no more than 10.0% of the total funds in the Common Pool can be funded by a single proposal.

Advanced Settings*

Parameter Value
HNY Liquidity 100 wxDAI
Garden Liquidity 1 TEC
Virtual Supply 1 TEC
Virtual Balance 1 wxDAI
Transferable False
Token Name Token Engineering Commons
Token Symbol TEC
Proposal Deposit 200 wxDAI
Challenge Deposit 400 wxDAI
Settlement Period 5 days
Minimum Effective Supply 2.0%
Hatchers Rage Quit 60000 wxDAI
Initial Buy 250000 wxDAI

*Learn more about Advanced Settings on the TEC forum

FORK THIS PROPOSAL (link)

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