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The 5th best proposal ever written #61

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

The 5th best proposal ever written #61

tecparamsbot opened this issue Dec 18, 2021 · 0 comments

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What is the overall Commons Configuration strategy?

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Summary

Module 1: Token Freeze & Token Thaw

Parameter Value
Token Freeze 26 Weeks
Token Thaw 130 Weeks
Opening Price 1.5 wxDAI

Module 2: Augmented Bonding Curve

Parameter Value
Commons Tribute 50.00%
Entry Tribute 3.00%
Exit Tribute 8.00%
*Reserve Ratio 21.49%

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

Module 3: Tao Voting

Parameter Value
Support Required 60%
Minimum Quorum 20%
Vote Duration 5 day(s)
Delegated Voting Period 5 day(s)
Quiet Ending Period 5 day(s)
Quiet Ending Extension 5 day(s)
Execution Delay 3 day(s)

Module 4: Conviction Voting

Parameter Value
Conviction Growth 5 day(s)
Minimum Conviction 10.0%
Spending Limit 10.0%

Module 1: Token Freeze and Token Thaw

Strategy:

Modest token price of 1.50 (50% above what Hatchers have bought in with). The rationale is to have a price that is attractive to incoming investors. The more buys/sells, the more added to the Common pool coffers. This will be paired with moderate entry/exit tributes.

The freeze is set to just half a year but with a long drip out over the following 2.5 years. I like this. After 1 year, 20% of Hatcher tokens will have thawed and the price floor will be 1.20 wxDAI, above the original Hatcher buy-in of 1 wxDAI. At the 3 year mark, 100% of tokens will have thawed.

Note: The reverse, high free and low thaw, would keep a high floor price for a longer time and then a drop of the floor price. There have got to be some very good advantages for having a higher floor price for longer. The longer the token has that built-in safety net, the longer it will be appealing knowing it can’t actually go below that floor.

Parameter Value
Token Freeze 26 Weeks
Token Thaw 130 Weeks
Opening Price 1.5 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% 1.50 wxDAI
6 months 0.00% 1.50 wxDAI
9 months 10.00% 1.35 wxDAI
1 year 20.00% 1.20 wxDAI
1.5 years 40.00% 0.90 wxDAI
2 years 60.00% 0.60 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:

For Commons tribute I wanted to hit near 640K - and estimate for 6 months runway of DAO operations and equal amount in funding for TE projects.

At 3 and 8, the Entry tribute is modest and the Exit a little higher. Looking for a balance between the feel-good about regenerating our economy and acting as a deterrent.

Parameter Value
Commons Tribute 50.00%
Entry Tribute 3.00%
Exit Tribute 8.00%
*Reserve Ratio 21.49%

*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) 638111.79
Reserve (After Initial Buy) 873111.78

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 1.5 250000.00 wxDAI 7500.0 141684.89 TEC 1.94 12.36%
1 873111.78 2098106.58 1.94 5000.00 wxDAI 150.0 2498.98 TEC 1.95 0.22%
2 877961.79 2100605.56 1.95 100000.00 wxDAI 3000.0 47840.25 TEC 2.11 4.07%
3 974961.79 2148445.81 2.11 3000.00 TEC 189.58 6129.71 wxDAI 2.1 0.25%
4 968642.5 2145445.81 2.1 1000000.00 wxDAI 30000.0 344959.81 TEC 3.62 25.28%
5 1938642.5 2490405.61 3.62 10000.00 wxDAI 300.0 2672.40 TEC 3.64 0.20%
6 1948342.5 2493078.01 3.64 10000.00 wxDAI 300.0 2661.97 TEC 3.65 0.19%
7 1958042.5 2495739.98 3.65 10000.00 TEC 1087.32 35156.60 wxDAI 3.6 0.73%
8 1921798.58 2485739.98 3.6 20000.00 TEC 2127.21 68779.77 wxDAI 3.49 1.46%

ABC Overview

Reserve (wxDai) Supply (TEC) Price (wxDai/TEC) Market cap
10,000 803,037 0.06 46,544.77
50,000 1,134,804 0.21 232,689.89
100,000 1,317,062 0.35 465,370.91
200,000 1,528,596 0.61 930,733.80
300,000 1,667,754 0.84 1,396,095.49
400,000 1,774,105 1.05 1,861,458.96
500,000 1,861,247 1.25 2,326,820.93
600,000 1,935,614 1.44 2,792,183.19
700,000 2,000,805 1.63 3,257,546.67
800,000 2,059,047 1.81 3,722,908.55
900,000 2,111,827 1.98 4,188,273.08
1,000,000 2,160,185 2.15 4,653,634.85
1,250,000 2,266,290 2.57 5,817,042.89
1,500,000 2,356,842 2.96 6,980,446.99
1,750,000 2,436,219 3.34 8,143,856.40
2,000,000 2,507,137 3.71 9,307,259.82
2,500,000 2,630,284 4.42 11,634,070.99
3,000,000 2,735,380 5.10 13,960,889.84
3,500,000 2,827,506 5.76 16,287,703.00
4,000,000 2,909,814 6.40 18,614,514.12
5,000,000 3,052,740 7.62 23,268,143.99
7,500,000 3,330,653 10.48 34,902,212.14
10,000,000 3,543,047 13.13 46,536,275.84
15,000,000 3,865,596 18.06 69,804,413.67
20,000,000 4,112,104 22.63 93,072,540.29
50,000,000 5,006,980 46.47 232,681,329.02
100,000,000 5,811,163 80.08 465,362,669.06

Module 3: Tao Voting

Strategy:

Support Required at 70% means that a proposal will fail if 30% vote no. Right now, I’m thinking that would signal something the community will need to look at again.

Because this is TAO voting, I made the Min Quorum 20% though I am asking myself if that is the right balance between getting critical votes passed but with enough scrutiny to be safe.

Parameter Value
Support Required 60%
Minimum Quorum 20%
Vote Duration 5 day(s)
Delegated Voting Period 5 day(s)
Quiet Ending Period 5 day(s)
Quiet Ending Extension 5 day(s)
Execution Delay 3 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 5 days 10 days 15 days
Time to Review a Delegates Vote 0 days 5 days 10 days
Time to Execute a Passing Proposal 8 days 13 days 18 days

Module 4: Conviction Voting

Strategy:

Capping the Spending Limit at 10% and Min Conviction at 105 too. With Conviction Growth at 5 days, reaching max conviction would take between 3-4 weeks. This is an area I will want to look at again.

Parameter Value
Conviction Growth 5 day(s)
Minimum Conviction 10.0%
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 185185
2 5,000 100,000 1,500,000 600000
3 25,000 100,000 1,500,000 Not possible
4 1,000 750,000 1,500,000 154081
5 5,000 750,000 1,500,000 172193
6 25,000 750,000 1,500,000 337499

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: 130 weeks, meaning the Hatchers frozen tokens will start to become transferable at a steady rate starting at the end of Token Freeze and ending 130 weeks later.
  • Opening Price: 1.5 wxDAI, meaning for the initial buy, the first TEC minted by the Augmented Bonding Curve will be priced at 1.5 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: 3.00% meaning that from every BUY order on the ABC, 3.00% 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: 60%, which means 60% of all votes must be in favor of a proposal for it to pass.
  • Minimum Quorum: 20%, meaning that 20% of all tokens need to have voted on a proposal in order for it to become valid.
  • Vote Duration: 5 day(s), meaning that eligible voters will have 5 day(s) to vote on a proposal.
  • Delegated Voting Period is set for 5 day(s), meaning that Delegates will have 5 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: 5 day(s), meaning that if the vote outcome changes during the Quiet Ending Period, an additional 5 day(s) will be added for voting.
  • Execution Delay: 3 day(s), meaning that there is an 3 day delay after the vote is passed before the proposed action is executed.

Conviction Voting

  • Conviction Growth: 5 day(s), meaning that voting power will increase by 50% every 5 days that they are staked behind a proposal, so after 10 days, a voters voting power will have reached 75% of it's maximum capacity.
  • Minimum Conviction: 10.0%, this means that to pass any funding request it will take at least 10.0% 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 True
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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