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TEST A Token Orogeny that Slaps but with better Tao Voting #64

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

TEST A Token Orogeny that Slaps but with better Tao Voting #64

tecparamsbot opened this issue Dec 18, 2021 · 0 comments

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What is the overall Commons Configuration strategy?

This strategy is designed to ensure the stability of the ABC throughout the early stages of Commons Development while prioritizing small funding proposals that make an impact in the space and expanding the utility of the TEC token and the role of the Token Engineering Commons within this industry.

FORK THIS PROPOSAL (link)

Summary

Module 1: Token Freeze & Token Thaw

Parameter Value
Token Freeze 18 Weeks
Token Thaw 78 Weeks
Opening Price 1.55 wxDAI

Module 2: Augmented Bonding Curve

Parameter Value
Commons Tribute 50.00%
Entry Tribute 12.00%
Exit Tribute 8.00%
*Reserve Ratio 20.80%

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

Module 3: Tao Voting

Parameter Value
Support Required 83%
Minimum Quorum 8%
Vote Duration 7 day(s)
Delegated Voting Period 4 day(s)
Quiet Ending Period 2 day(s)
Quiet Ending Extension 2 day(s)
Execution Delay 0.5 day(s)

Module 4: Conviction Voting

Parameter Value
Conviction Growth 42 day(s)
Minimum Conviction 0.8%
Spending Limit 11.0%

Module 1: Token Freeze and Token Thaw

Strategy:

Opening Price is at the lower end ($1.50) allowing for initial token buyers to get in at a perceived bargain even after the initial buy-in. The Token Freeze (18 weeks) provides a 4+ month buffer to allow enough economic activity to occur on the ABC while minimizing the amount of time for value-aligned members to begin putting their tokens to use. The Token Thaw period (1.5 year) allows for a responsible amount of time to effectively distribute potential sell pressure placed on the ABC.

Parameter Value
Token Freeze 18 Weeks
Token Thaw 78 Weeks
Opening Price 1.55 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% 1.55 wxDAI
6 months 10.26% 1.39 wxDAI
9 months 26.92% 1.13 wxDAI
1 year 43.59% 0.87 wxDAI
1.5 years 76.92% 0.36 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

Module 2: Augmented Bonding Curve (ABC)

Strategy:

The Commons Tribute (42%) will allow for a substantial amount of funds to be available for distribution granting the TEC Token more opportunity for external utility. The Entry Tribute (12%) and Exit Tribute (8%) is designed to prevent speculation on the curve early on and allow for value-aligned individuals to enter into the TEC economy, while contributing more funding toward the Commons Pool. This proposal comes with the assumption that these parameters will be altered after the Commons Upgrade when the Entry & Exit Tributes will be altered to reflect the dynamics of secondary markets and arbitrage opportunities.

Parameter Value
Commons Tribute 50.00%
Entry Tribute 12.00%
Exit Tribute 8.00%
*Reserve Ratio 20.80%

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

Allocation of Funds wxDAI
Common Pool (Before Initial Buy) 630611.79
Reserve (Before Initial Buy) 630611.79
Common Pool (After Initial Buy) 660611.79
Reserve (After Initial Buy) 850611.79

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 630611.79 1956421.69 1.55 250000.00 wxDAI 30000.0 125623.48 TEC 1.96 11.49%
1 850611.79 2082045.16 1.96 5000.00 wxDAI 600.0 2235.07 TEC 1.97 0.20%
2 855011.79 2084280.24 1.97 100000.00 wxDAI 12000.0 42896.28 TEC 2.13 3.84%
3 943011.79 2127176.52 2.13 3000.00 TEC 765.39 5612.85 wxDAI 2.12 0.27%

ABC Overview

Reserve (wxDai) Supply (TEC) Price (wxDai/TEC) Market cap
10,000 826,440 0.06 48,096.55
50,000 1,154,919 0.21 240,446.53
100,000 1,333,983 0.36 480,883.89
200,000 1,540,813 0.62 961,758.53
300,000 1,676,364 0.86 1,442,632.42
400,000 1,779,713 1.08 1,923,508.40
500,000 1,864,244 1.29 2,404,383.11
600,000 1,936,282 1.49 2,885,258.23
700,000 1,999,358 1.68 3,366,132.89
800,000 2,055,655 1.87 3,847,008.10
900,000 2,106,626 2.05 4,327,882.46
1,000,000 2,153,292 2.23 4,808,754.57
1,250,000 2,255,567 2.66 6,010,941.16
1,500,000 2,342,728 3.08 7,213,131.21
1,750,000 2,419,043 3.48 8,415,312.88
2,000,000 2,487,158 3.87 9,617,500.48
2,500,000 2,605,290 4.61 12,021,872.75
3,000,000 2,705,965 5.33 14,426,249.81
3,500,000 2,794,114 6.02 16,830,621.01
4,000,000 2,872,789 6.70 19,234,990.97
5,000,000 3,009,239 7.99 24,043,750.62
7,500,000 3,273,976 11.02 36,065,610.29
10,000,000 3,475,819 13.83 48,087,493.06
15,000,000 3,781,604 19.07 72,131,203.25
20,000,000 4,014,741 23.96 96,174,951.13
50,000,000 4,857,479 49.50 240,437,347.74
100,000,000 5,610,627 85.71 480,874,865.22

Module 3: Tao Voting

Strategy:

Tao is not supposed to be shouted in all caps and while Lao Tsu would agree that patience is a virtue, 10 days is just longer than necessary... so i modified this proposal to have a shorter time frame... I like 88% for support required but compromised with the original param set with 83% Support Required.

The Tao Voting parameters provide a voting system that requires a high amount of support (83%), and a moderate quorum (8%) of participation. The Vote Duration (7 days) allows a sufficient amount of time for community engagement. Delegated Voting (4 days) will end slightly before the active voting period, allowing community members (3 days) an opportunity to alter the outcome of the vote. If the voting outcome is changed, there will be a quiet ending extension of (2 days) for final community engagement. The execution delay (12 hours) is sufficient time for the community to prepare for voting outcomes for those that really care about exiting after a vote is determined given the quiet ending extension.

Parameter Value
Support Required 83%
Minimum Quorum 8%
Vote Duration 7 day(s)
Delegated Voting Period 4 day(s)
Quiet Ending Period 2 day(s)
Quiet Ending Extension 2 day(s)
Execution Delay 0.5 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 7 days 9 days 11 days
Time to Review a Delegates Vote 3 days 5 days 7 days
Time to Execute a Passing Proposal 7.5 days 9.5 days 11.5 days

Module 4: Conviction Voting

Strategy:

With the conviction voting module, I set the Spending Limit (11%) on the lower side ensuring that we fund proposals incrementally if possible, and not risk a large amount of funds on any single project. The Minimum Conviction (0.8%) reduces the minimum effective supply which reflects the spending limit strategy -- allowing for an abundance of funding proposals all with the chance of passing with smaller amounts of tokens staked. The Conviction Growth (42 days) ensures that proposals aren't passed too quickly and that the community has an opportunity to move their tokens between proposals without impacting their conviction too quickly.

Parameter Value
Conviction Growth 42 day(s)
Minimum Conviction 0.8%
Spending Limit 11.0%

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 14519
2 5,000 100,000 1,500,000 40333
3 25,000 100,000 1,500,000 Not possible
4 1,000 750,000 1,500,000 12296
5 5,000 750,000 1,500,000 13598
6 25,000 750,000 1,500,000 24703

FORK THIS PROPOSAL (link)

Parameter Definitions

Token Freeze and Token Thaw

  • Token Freeze: 18 weeks, meaning that 100% of TEC tokens minted for Hatchers will remain locked from being sold or transferred for 18 weeks. They can still be used to vote while frozen.
  • Token Thaw: 78 weeks, meaning the Hatchers frozen tokens will start to become transferable at a steady rate starting at the end of Token Freeze and ending 78 weeks later.
  • Opening Price: 1.55 wxDAI, meaning for the initial buy, the first TEC minted by the Augmented Bonding Curve will be priced at 1.55 wxDAI making it the price floor during the Token Freeze.

Augmented Bonding Curve (ABC)

  • Commons Tribute: 50.00%, which means that 50.00% of the Hatch funds (630611.79 wxDAI) will go to the Common Pool and 50.00% (630611.79 wxDAI) will go to the ABC's Reserve.
  • Entry Tribute: 12.00% meaning that from every BUY order on the ABC, 12.00% of the order value in wxDAI is subtracted and sent to the Common Pool.
  • Exit Tribute: 8.00% meaning that from every SELL order on the ABC, 8.00% of the order value in wxDAI is subtracted and sent to the Common Pool.

Tao Voting

  • Support Required: 83%, which means 83% of all votes must be in favor of a proposal for it to pass.
  • Minimum Quorum: 8%, meaning that 8% of all tokens need to have voted on a proposal in order for it to become valid.
  • Vote Duration: 7 day(s), meaning that eligible voters will have 7 day(s) to vote on a proposal.
  • Delegated Voting Period is set for 4 day(s), meaning that Delegates will have 4 day(s) to use their delegated voting power to vote on a proposal.
  • Quiet Ending Period: 2 day(s), this means that 2 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.

Conviction Voting

  • Conviction Growth: 42 day(s), meaning that voting power will increase by 50% every 42 days that they are staked behind a proposal, so after 14 days, a voters voting power will have reached 75% of it's maximum capacity.
  • Minimum Conviction: 0.8%, this means that to pass any funding request it will take at least 0.8% of the actively voting TEC tokens.
  • The Spending Limit: 11.0%, which means that no more than 11.0% 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 1.0%
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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