A while ago we opened a thread of discussion around implementing a lockup of farmed tokens with two options for consideration. A lot was said in that thread, and now I’d like to start fresh with a summary of insights from the original conversation so we can refocus.
Since discussion stalled on the original thread, we’ve had some conversations among the team about how to proceed. We haven’t felt confident about bringing a vote on either proposal, firstly because there was not a clear consensus and secondly due to some considerations I’ll list below after the summary.
Summary of previous thread
- There was general support among participating community members to implement the original v3 locking scheme (two years or 30% utilization), but also some different ideas and open questions about how to handle the details
- There was limited support for the price based scheme (unlock when price reaches $.10), in terms of individual voices, but it seems there’s a substantial amount of Grid capacity backing it and that’s how our votes are weighted
- A price based scheme raised some concerns, especially with a price target of $.10
- Many farmers don’t follow announcements closely. Non voluntary locking of minted tokens will look basically like minting has stopped, and a percentage of farmers will likely just disconnect their nodes. Some percentage of farmers who understand what’s happening will also likely do the same
- We don’t want a significant contraction of Grid capacity just before or during the launch of the commercial ThreeFold Cloud offering
- What’s perhaps much more important than limiting liquid token supply is ensuring that there is a strong incentive for farmers to run workloads rather than an inverse incentive when energy costs rise. A voluntary lock with utilization incentive included can fix the situation without too much collateral damage, while also limiting liquid supply to an extent
- The 30% unlock condition is neither a particularly strong incentive to run workloads nor compatible with a voluntary locking scheme that’s tied to a utilization based incentive (farmers who have the incentive to opt in are also those whose tokens would unlock first)
With the above in mind, we’d like to present a modified version of “option 2” from the previous thread:
- Voluntary for existing nodes and mandatory for new nodes
- Participating farmers get 50% of the revenue for workloads running on their nodes
- All rewards are locked until either TFT reaches a price of $.10 or until a fixed unlock date is reached (one year from launch of program)
While we think that the new proposal is a sensible move that addresses the biggest concern regarding its original form, we also respect the support shown for sticking to the original v3 token lock plan. We’d like to give some time to discuss after this reformulation, take a poll if there’s not a clear consensus, and then proceed with a vote, all in a timely manner.
Thanks everyone for your consideration and participation in shaping the future of the ThreeFold Grid