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Entry into Orogeny #65

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

Entry into Orogeny #65

tecparamsbot opened this issue Dec 18, 2021 · 0 comments

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What is the overall Commons Configuration strategy?

Taking Nate's Orogeny CV params and adding simple numbers and a little spice that give a good balance between funding the Economic arm and the Value Creation arm. The strategy is to have a design that will attract value aligned TEs, keeping the Reserve Ratio reasonable at 20% and having a high entry tribute to keep out speculators but attract value aligned participants that missed the Hatch. With this strategy, we should change the Tributes to tighten them up within 2 months of launch.

FORK THIS PROPOSAL (link)

Summary

Module 1: Token Freeze & Token Thaw

Parameter Value
Token Freeze 26 Weeks
Token Thaw 52 Weeks
Opening Price 1.5 wxDAI

Module 2: Augmented Bonding Curve

Parameter Value
Commons Tribute 50.00%
Entry Tribute 15.00%
Exit Tribute 1.00%
*Reserve Ratio 21.49%

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

Module 3: Tao Voting

Parameter Value
Support Required 88%
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 60 day(s)
Minimum Conviction 1.0%
Spending Limit 20.0%

Module 1: Token Freeze and Token Thaw

Strategy:

Considering the decent profit (50% / 93%) 1.5 year vesting seems fine. 6 months to get the economy going, 1 year after that to slowly vest... if someone had 10,000 tokens from the Hatch they would get about ~25 tokens a day.

Parameter Value
Token Freeze 26 Weeks
Token Thaw 52 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 25.00% 1.12 wxDAI
1 year 50.00% 0.75 wxDAI
1.5 years 100.00% 0.00 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 is set so that there is about ~680k in the Common Pool and with the initial buy ~720k. The Entry Tribute (15%) is extremely high.. but this is the only way to get tokens to start so I think it will not dissuade early contributors that are value aligned and I would say we make a plan to lower it and raise the Exit tribute after a few weeks as a strategy to open it up to Speculators.

Parameter Value
Commons Tribute 50.00%
Entry Tribute 15.00%
Exit Tribute 1.00%
*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) 668111.79
Reserve (After Initial Buy) 843111.79

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 1.5 250000.00 wxDAI 37500.0 125980.29 TEC 1.88 11.07%
1 843111.79 2082401.97 1.88 5000.00 wxDAI 750.0 2251.23 TEC 1.89 0.20%
2 847361.79 2084653.2 1.89 100000.00 wxDAI 15000.0 43265.06 TEC 2.04 3.72%
3 932361.79 2127918.25 2.04 3000.00 TEC 915.2 5186.12 wxDAI 2.03 0.26%

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:

The Tao Voting parameters provide a voting system that requires a high amount of support (88%), and a moderate quorum (8%) of participation.... this is the same as our HatchDAO 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 88%
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 (20%) on the higher side ensuring that we can fund big proposals if we need to. The rest of the settings were inspired by Nate's Orogeny params with a low Minimum Conviction (1%) and high Conviction Growth (60 days) ensures that it takes a lot of tokens to pass proposals quickly but minority token holders with patience and persistence can still fund projects and that the community has an opportunity to move their tokens between proposals without impacting their conviction too quickly.

Parameter Value
Conviction Growth 60 day(s)
Minimum Conviction 1.0%
Spending Limit 20.0%

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 16620
2 5,000 100,000 1,500,000 26666
3 25,000 100,000 1,500,000 Not possible
4 1,000 750,000 1,500,000 15202
5 5,000 750,000 1,500,000 16052
6 25,000 750,000 1,500,000 21600

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: 52 weeks, meaning the Hatchers frozen tokens will start to become transferable at a steady rate starting at the end of Token Freeze and ending 52 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: 15.00% meaning that from every BUY order on the ABC, 15.00% of the order value in wxDAI is subtracted and sent to the Common Pool.
  • Exit Tribute: 1.00% meaning that from every SELL order on the ABC, 1.00% of the order value in wxDAI is subtracted and sent to the Common Pool.

Tao Voting

  • Support Required: 88%, which means 88% 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: 60 day(s), meaning that voting power will increase by 50% every 60 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: 1.0%, this means that to pass any funding request it will take at least 1.0% of the actively voting TEC tokens.
  • The Spending Limit: 20.0%, which means that no more than 20.0% 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 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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