G-rated Goldilocks Orogeny

[tecparamsbot]

What is the overall Commons Configuration strategy?

Come on... let's be serious.

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.

Advanced Settings Modified? Yes

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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	53.00%
Entry Tribute	15.00%
Exit Tribute	1.00%
*Reserve Ratio	20.20%

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

Module 3: Tao Voting

Parameter	Value
Support Required	998%
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	45 day(s)
Minimum Conviction	1.0%
Spending Limit	15.0%

Module 1: Token Freeze and Token Thaw

Data:

This is the theoretical Price Floor for TEC. It would only be reached if all tokens that were liquid were burned and no liquid tokens existed, which is very unlikely to occur.

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

• 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.

Strategy:

Considering the decent profit (69% / 111%) 1.5 year vesting seems fine. 6 months to get the economy going, 1 year after that to slowly vest... if some one had 10,000 tokens they would get about ~25 tokens a day.

Module 2: Augmented Bonding Curve (ABC)

Data:

This shows how the TEC Price changes with the ABC's Reserve Balance, highlighting the Initial Buy that will happen at launch.

Step #	Current Price	Amount In	Tribute Collected	Amount Out	New Price	Price Slippage
Step 0	1.5	250000.00 wxDAI	37500.0	124896.62 TEC	1.92	11.84%
Step 1	1.92	5000.00 wxDAI	750.0	2214.15 TEC	1.92	0.21%
Step 2	1.92	100000.00 wxDAI	15000.0	42447.33 TEC	2.08	3.94%
Step 3	2.08	3000.00 TEC	934.76	5296.96 wxDAI	2.07	0.28%

NOTE:

We're very bullish on TEC so we provide the BUY scenario at launch to compare proposals... to explore this proposal's ABC further Click the link below to see their parameters in your dashboard, be warned this will clear any data you have in your dashboard:

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Allocation of Funds	wxDAI
Common Pool (Before Initial Buy)	668448.49
Reserve (Before Initial Buy)	592775.08
Common Pool (After Initial Buy)	705948.49
Reserve (After Initial Buy)	805275.08

ABC Configuration Table

Reserve (wxDai)	Supply (TEC)	Price (wxDai/TEC)
10,000	857,765	0.06
50,000	1,187,249	0.21
100,000	1,365,670	0.36
200,000	1,570,909	0.63
300,000	1,704,982	0.87
400,000	1,806,993	1.10
500,000	1,890,303	1.31
600,000	1,961,216	1.51
700,000	2,023,244	1.71
800,000	2,078,558	1.91
900,000	2,128,603	2.09
1,000,000	2,174,389	2.28
1,250,000	2,274,638	2.72
1,500,000	2,359,969	3.15
1,750,000	2,434,609	3.56
2,000,000	2,501,169	3.96
2,500,000	2,616,485	4.73
3,000,000	2,714,640	5.47
3,500,000	2,800,496	6.19
4,000,000	2,877,060	6.88
5,000,000	3,009,706	8.22
7,500,000	3,266,580	11.37
10,000,000	3,462,024	14.30
15,000,000	3,757,502	19.76
20,000,000	3,982,319	24.86
50,000,000	4,792,003	51.66
100,000,000	5,512,175	89.81

• Commons Tribute: 53.00%, which means that 53.00% of the Hatch funds (668448.49 wxDAI) will go to the Common Pool and 47.00% (592775.08 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.

Strategy:

The Commons Tribute is set so that there is about ~600k in the Common Pool and with the initial buy ~638k. 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

Module 3: Tao Voting

Data:

This shows how the timeline stacks up for decision votes that can change the configuration after launch.

# 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

• Support Required: 998%, which means 998% 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.

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.

Module 4: Conviction Voting

Data:

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.

Proposal	Requested Amount (wxDAI)	Common Pool (wxDAI)	Effective supply (TEC)	Tokens Needed To Pass (TEC)
1	1,000	100,000	1,500,000	17219
2	5,000	100,000	1,500,000	33750
3	25,000	100,000	1,500,000	Not possible
4	1,000	750,000	1,500,000	15270
5	5,000	750,000	1,500,000	16427
6	25,000	750,000	1,500,000	24795

• Conviction Growth: 45 day(s), meaning that voting power will increase by 50% every 45 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: 15.0%, which means that no more than 15.0% of the total funds in the Common Pool can be funded by a single proposal.

Strategy:

With the conviction voting module, I set the Spending Limit (15%) 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 low Minimum Conviction (1%) and high Conviction Growth (45 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.

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*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	0.01%
Hatchers Rage Quit	60000 wxDAI
Initial Buy	250000 wxDAI

*Learn more about Advanced Settings on the TEC forum

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