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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. This proposal also ensures that those buying into the community are value aligned, and are dedicated to staying for long period of time.
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
1.5 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
10.26%
1.35 wxDAI
9 months
26.92%
1.10 wxDAI
1 year
43.59%
0.85 wxDAI
1.5 years
76.92%
0.35 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 (0%) and Exit Tribute (40%) is an extreme design that prevents speculation on the curve early on and allows for value-aligned individuals to enter into the TEC economy. Most proposals come with the assumption that the Entry & Exit Tributes will be altered after the Commons Upgrade. This extreme design guarantees that alteration, while preventing speculation by creating easy access for those who want to buy into the economy, and a harsh penalty for leaving.
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
731509.67
1956421.69
1.5
250000.00 wxDAI
2500.0
147412.63 TEC
1.87
10.66%
1
979009.67
2103834.32
1.87
5000.00 wxDAI
50.0
2646.51 TEC
1.87
0.19%
2
983959.67
2106480.83
1.87
100000.00 wxDAI
1000.0
50944.51 TEC
2.01
3.57%
3
1082959.67
2157425.34
2.01
3000.00 TEC
60.29
5968.39 wxDAI
2.01
0.21%
4
1076931.0
2154425.34
2.01
11000.00 TEC
218.9
21670.92 wxDAI
1.97
0.77%
5
1055041.17
2143425.34
1.97
50000.00 TEC
953.19
94365.99 wxDAI
1.84
3.46%
6
959721.99
2093425.34
1.84
500.00 TEC
9.19
910.06 wxDAI
1.84
0.04%
ABC Overview
Reserve (wxDai)
Supply (TEC)
Price (wxDai/TEC)
Market cap
10,000
671,102
0.06
40,123.46
50,000
1,002,320
0.20
200,593.27
100,000
1,191,356
0.34
401,180.59
200,000
1,416,048
0.57
802,355.65
300,000
1,566,649
0.77
1,203,530.35
400,000
1,683,119
0.95
1,604,704.78
500,000
1,779,390
1.13
2,005,879.50
600,000
1,862,124
1.29
2,407,054.20
700,000
1,935,068
1.45
2,808,229.61
800,000
2,000,560
1.60
3,209,402.44
900,000
2,060,166
1.75
3,610,577.94
1,000,000
2,114,989
1.90
4,011,752.87
1,250,000
2,235,964
2.24
5,014,690.36
1,500,000
2,339,925
2.57
6,017,626.98
1,750,000
2,431,586
2.89
7,020,564.95
2,000,000
2,513,884
3.19
8,023,498.57
2,500,000
2,657,674
3.77
10,029,375.45
3,000,000
2,781,244
4.33
12,035,248.26
3,500,000
2,890,192
4.86
14,041,118.56
4,000,000
2,988,012
5.37
16,046,994.58
5,000,000
3,158,921
6.35
20,058,740.78
7,500,000
3,494,884
8.61
30,088,113.94
10,000,000
3,754,706
10.68
40,117,486.53
15,000,000
4,154,032
14.49
60,176,219.02
20,000,000
4,462,858
17.98
80,234,957.98
50,000,000
5,607,983
35.77
200,587,382.60
100,000,000
6,665,670
60.19
401,174,739.40
Module 3: Tao Voting
Strategy:
The TAO Voting parameters provide a voting system that requires a high amount of support (78%), and a moderate quorum (8%) of participation. The Vote Duration (10 days) allows a sufficient amount of time for community engagement. Delegated Voting (7 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 (3 days) is sufficient time for the community to prepare for voting outcomes.
Parameter
Value
Support Required
78%
Minimum Quorum
8%
Vote Duration
10 day(s)
Delegated Voting Period
7 day(s)
Quiet Ending Period
3 day(s)
Quiet Ending Extension
2 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
10 days
12 days
14 days
Time to Review a Delegates Vote
3 days
5 days
7 days
Time to Execute a Passing Proposal
13 days
15 days
17 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.
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: 1.5 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: 42.00%, which means that 42.00% of the Hatch funds (529713.90 wxDAI) will go to the Common Pool and 58.00% (731509.67 wxDAI) will go to the ABC's Reserve.
Entry Tribute: 1.00% meaning that from every BUY order on the ABC, 1.00% of the order value in wxDAI is subtracted and sent to the Common Pool.
Exit Tribute: 40.00% meaning that from every SELL order on the ABC, 40.00% of the order value in wxDAI is subtracted and sent to the Common Pool.
Tao Voting
Support Required: 78%, which means 78% 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: 10 day(s), meaning that eligible voters will have 10 day(s) to vote on a proposal.
Delegated Voting Period is set for 7 day(s), meaning that Delegates will have 7 day(s) to use their delegated voting power to vote on a proposal.
Quiet Ending Period: 3 day(s), this means that 3 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: 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: 42 day(s), meaning that voting power will increase by 50% every 42 days that they are staked behind a proposal, so after 20 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.
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. This proposal also ensures that those buying into the community are value aligned, and are dedicated to staying for long period of time.
FORK THIS PROPOSAL (link)
Summary
Module 1: Token Freeze & Token Thaw
Module 2: Augmented Bonding Curve
*This is an output. Learn more about the Reserve Ratio here.
Module 3: Tao Voting
Module 4: Conviction Voting
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.
Hatcher's TEC Release Schedule
Token Release Timeline
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 (0%) and Exit Tribute (40%) is an extreme design that prevents speculation on the curve early on and allows for value-aligned individuals to enter into the TEC economy. Most proposals come with the assumption that the Entry & Exit Tributes will be altered after the Commons Upgrade. This extreme design guarantees that alteration, while preventing speculation by creating easy access for those who want to buy into the economy, and a harsh penalty for leaving.
*This is an output. Learn more about the Reserve Ratio here.
TEC Price vs ABC Reserve Holdings
Example Transaction Data
ABC Overview
Module 3: Tao Voting
Strategy:
The TAO Voting parameters provide a voting system that requires a high amount of support (78%), and a moderate quorum (8%) of participation. The Vote Duration (10 days) allows a sufficient amount of time for community engagement. Delegated Voting (7 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 (3 days) is sufficient time for the community to prepare for voting outcomes.
Tao Voting Timeline From Proposal To Execution
Timeline Data
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.
Minimum Percent of Voting Tokens Needed to Pass Funding Requests
Example Funding Request Data
FORK THIS PROPOSAL (link)
Parameter Definitions
Token Freeze and Token Thaw
Augmented Bonding Curve (ABC)
Tao Voting
Conviction Voting
Advanced Settings*
*Learn more about Advanced Settings on the TEC forum
FORK THIS PROPOSAL (link)
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