Thanks Ryan. It goes to the right direction. But it could be more ambitious and mainly more fair.
Have a look at my proposant below.
Lower down the amount for future token sale and opération
Lower the community reward reserves for mining to 20,000,000 which is approximately the amount of circulating supply. As Ryan said it’s enough, even with 5,000,000 less in my proposal.
Reduce team amount from 25,000,000 to 5,000,000. It’s more fair because if we burn token every stakeholders have to reduce his part. Why 5,000,000 for the team? Because wiht that 5,000,0000 you keep 5% of the total. Which remains as the actual 5% you have.
Reduce insurance to 5,000,000 to keep the actual percentage of 5%
Amount for operation is a bit lower than 10,000,000 just to have a perfect round number of 100,000,000 FNX in total.
Don’t hesitate to comment
I like this Ryan. You are right that the community reward reserves are enough at 25m. 300m+ is a bit heavy if you ask me. The rest looks fine to me. 150m total is a perfect number imo. Potential holders of FNX will not be intimidated by these numbers.
Thank you all for putting so much thought into this. Although I understand profk’s reasoning I go with Ryan and Jonathan’s latest proposal, closely in favor of Jonathan’s regarding the 100M. Right now the difference between circulating supply and fully diluted supply is just too big and brings a lot of insecurity.
It will come in Jan.
We need to regard this token burn proposal more carefully, together with the new mining plan.
On one hand, to burn FNX tokens to minimize the future uncertainty, while on the other hand, to retain enough flexibility and mining reserve, at least in the coming 3-5 years.
Based on the new mining plan, the mining incentive will be greatly increased.
Therefore, more FNX should be reserved than originally expected.
Suppose the daily average reward is 60,000 FNX (considering the boosting factor as stated here New mechanism of mining rewards), it will be 21,900,000 FNX in one year. The previously revised reserve will far too few.
To be safe for long term development, I suggest the community reward reserve should be changed to 100M FNX, which is 44% of the total supply, still a big drop from the original 350M FNX.
The release of the mining reserve is public and can be monitored easily on-chain. It will not add any unexpected burden to the circulation.
The total token supply will be 225M, and the burnt amount will be 275M in total.
would it be an option instead of burning all tokens. you lock them for a few years ?
And when these years pass and you really don’t need them to be in circulation, you can then burn
Would burning supply hurt a project after several years ?
I am not a fan of burning at the start to increase value.
But a multi year lock plan with intention to burn if deemed not needed afterwards seems to me a good option
I agree that’s another choice of course.
But the community concerns that the team may hold the keys and can still change the rules anytime. The potential risk is still there.
There may be an option that we can lock it in contracts and put the keys somewhere that noone can touch or make changes.
I agree. This is basically what I want to do instead of burning. The idea is that the locked tokens should be put under community control as soon as possible, and it requires a quora and a majority, not a simple majority in order to spend them. A user would need to make a proposal like “I will build a better dashboard / new API” and then the community can vote whether or not to give them the bounty for that work.
I don’t like the idea of locking the token instead of burning them. We all know that a lock is never really a lock in the eyes of investors/FNX holders. It’s just the law of supply and demand.
I really prefere a burn and an attractive mining mechanism than a never ending FNX distribution. Or keep them for “just in case”. There is enough FNX in reserve with the Team, Operation, Insurance and future token sales allocation.
Look at FNX utility there is no need to have a total of FNX so high. The only utility of FNX for now is staking which acts as a mining mechanism. Are you motivate or incetivised to stake/mine knowing that there would be still 250’000’000 in a “blocked” reserve. Personllay, I don’t.
For now there is just too much supply of FNX and too low demand. So to support FNX price, it’s necessary to reduce the supply (thanks to the burn) and increase th demand (attract people to use the FPO and convice them to buy FNX to have a better price + offer great reward to stake FNX to offer liquidity to the pool). For a big impact we need to play on both side: supply AND demand.
It is not literally locking them where the team or some ‘unknown’ members holding the key.
What if the plan is to build a totally community-controlled fund, while the key is held by the community votes and executed totally on-chain.
This plan seems to have been applied by many well known projects like Compound, Uniswap, etc.
If it is a decentralized lock that no one can touch, or the fund is totally governed on-chain. I am OK with it.
What I am afraid is that the team still has the key to the lock or the key is held to some so-called ‘multi-sign’ holders that no one can be sure of their identity.
