[Proposal #3][v1.0.0] Tokenomics Update and Quorum Adjustment
Changelog
- 2024-02-20: Initial proposal draft created.
- 2024-02-23: Finalized Draft for publishing.
- 2024-02-26: update voting hash to date in the future
- 2024-02-27: Add clarity to Article VI. Referendum & Voting in the DAO
- 2024-03-04: Vote results added
Authors and Credit
- Unigrid DAO Governance Committee: The Unigrid Foundation, Discord, Twitter
Status
PASSED
Proposal
This proposal seeks to strategically adapt the tokenomics and governance model of our blockchain to better align with current market conditions and the evolving blockchain ecosystem. The primary objectives are to reduce the total token supply from 150,000,000 to 100,000,000, adjust the vesting schedule, and lower the quorum required for votes from 50% to 30% for operational adjustments and from 66% to 40% for strategic decisions.
It is crucial to note that the proposed reduction in the total token supply will not directly impact current token holders. This reduction will be achieved by adjusting the token allocations in the foundation pool and upcoming sale rounds. The intent is to increase the value and scarcity of the tokens without diluting or affecting the holdings of existing token owners. This approach is designed to benefit the overall ecosystem, aligning with the interests of both current and future stakeholders, while ensuring that the token remains a valuable and integral part of our project’s growth and development.
Voting Results - March 4th, 2024 12:00 GMT
- Yes: 275
- No: 0
- Abstain: 268
- Gridnodes: 540
- Quorum: 270
- RESULT: PASSED
- View results at block 2832827
- Gridnode Votes at block 2832827
- Block Info 2832827
Context
In the rapidly evolving landscape of blockchain technology and markets, our project’s initial token supply and vesting schedule, established under different conditions, now require a more dynamic and flexible approach. Reducing the total supply is anticipated to increase the attractiveness of the project to investors and participants by potentially enhancing token value and reducing the project’s Fully Diluted Valuation (FDV). A revised vesting schedule is proposed to more closely match the project’s accelerated development phase and active market engagement.
Additionally, the current quorum requirements for DAO governance have proven to be a significant challenge, particularly as the number of nodes and potential voters within our ecosystem expands. This growth, while positive, has inadvertently led to difficulties in reaching the required quorum for decision-making. As a result, important decisions are at risk of being delayed or becoming stagnant, hindering the project’s ability to adapt and respond promptly to new opportunities or challenges.
The proposed reduction in quorum requirements is a strategic response to these challenges. Lowering the threshold to 30% for operational adjustments allows for more efficient day-to-day decision-making, ensuring that essential but routine decisions are not impeded by a high quorum barrier. Similarly, setting a 40% threshold for strategic decisions strikes a balance between requiring substantial community involvement and acknowledging the practical difficulties in achieving a higher quorum as the number of stakeholders grows. This change is aimed at enhancing the DAO’s governance agility and ensuring that critical decisions can be made in a timely manner, reflecting both the needs of the community and the realities of a larger and more diverse voter base.
Through these adjustments, we are proposing a more resilient and responsive governance model that is better suited to the dynamic nature of the blockchain environment, supporting the project’s growth and success in the long term.
Vote and Snapshot Schedule
The voting process is a critical step in the approval and implementation of these changes. We will be taking a snapshot of the vote results on Monday, March 4th, at 12 PM GMT. This snapshot will ensure that all votes are accurately recorded and accounted for, reflecting the collective decision of our community.
Comparison
To provide a clear understanding of the changes proposed in this governance update, we have included links for a side-by-side comparison of the updated and current DAO documents. This will allow stakeholders to easily review the differences and understand the implications of the proposed adjustments.
- Updated Unigrid DAO Constitution (PDF) - This document outlines the proposed changes to the DAO’s tokenomics, governance model, and quorum requirements as detailed in this proposal.
- Current Unigrid DAO Constitution (PDF) - This document represents the existing DAO constitution prior to the proposed changes.
We encourage all members and stakeholders to review both documents to fully grasp the extent and impact of the proposed updates to our DAO governance structure.
Revised Token Distribution
| Category | Percentage | Tokens |
|---|---|---|
| Angel | 7.50% | 7,500,000 |
| Seed/Private | 7.00% | 7,000,000 |
| Public (IDO) | 5.00% | 5,000,000 |
| Node Runners | 7.50% | 7,500,000 |
| Foundation | 30.00% | 30,000,000 |
| Ecosystem Fund | 15.00% | 15,000,000 |
| Liquidity | 3.00% | 3,000,000 |
| Community Rewards | 9.00% | 9,000,000 |
| Team | 7.00% | 7,000,000 |
| Marketing | 9.00% | 9,000,000 |
| Total | 100% | 100,000,000 |
Proposed Vesting Schedule
| Category | % on TGE | Ramp-Up | Vesting |
|---|---|---|---|
| Angel | 5% | 6 | 12 |
| Seed/Private | 10% | 4 | 8 |
| Public (IDO) | 20% | 0 | 6 |
| Node Runners | 5% | 6 | 12 |
| Foundation | 0% | 6 | 36 |
| Ecosystem Fund | 2% | 6 | 24 |
| Liquidity | 13% | 0 | 16 |
| Community Rewards | 0% | 6 | 24 |
| Team | 0% | 12 | 24 |
| Marketing | 0% | 5 | 24 |
Revised Quorum Requirements
In an effort to enhance the efficiency and adaptability of the DAO’s decision-making process, the following adjustments to the quorum requirements are proposed, while maintaining the existing requirement for a majority of votes (50% + 1) for all decision areas:
Governance Adjustments: For changes related to the DAO’s governance structure and internal policies, such as modifications to the DAO’s token pool structure or amendments to the DAO’s constitution, the quorum requirement will be reduced from 50% to 30%. This adjustment is intended to enable more agile governance decisions. Despite the lower quorum, the decision will still require a majority of votes (50% + 1) to pass, ensuring that decisions are made with substantial community agreement.
Strategic Initiatives: For decisions with a significant impact on the project’s direction and ecosystem, like introducing or removing major ecosystem features, forming key partnerships, or managing major DAO assets, the quorum requirement will be adjusted from 66% to 40%. This change aims to balance the need for broad community consensus with the practical aspects of gathering votes as the DAO grows. The requirement for a decision to pass will remain at a majority of 50% + 1 of the votes.
Critical Decisions and Emergency Measures: For urgent and significant decisions, such as those addressing emergency measures vital to the DAO’s existence or key operations, a 40% quorum requirement is proposed. This ensures that time-sensitive issues can be addressed efficiently, while the decision-making process still upholds the principle of majority approval (50% + 1 of the votes).
These proposed changes to the quorum requirements are designed to streamline the DAO’s decision-making processes, ensuring that it remains agile and effective in a dynamic blockchain ecosystem. By differentiating the quorum requirements based on the nature and urgency of decisions, and maintaining the majority vote requirement, the DAO can respond more aptly to governance adjustments, strategic initiatives, and emergency situations.
Governance Votes
- YES: Approve the proposal to revise tokenomics and decrease the quorum required for votes to pass.
- NO: Disapprove of the proposal in its current form. Suggestions for improvements or adjustments should be indicated in the Discord governance channel.
updated 2/26/24
vote hash: cd15c21f07c60019671d5994ac38efd77ceb7410e5d39ab50f1e6e078ec06070
Conclusion
This proposal represents a strategic adjustment to the project’s tokenomics and governance processes, aligning them with the evolving needs of our blockchain ecosystem and the broader market environment. It is a step towards ensuring our project’s sustainability and scalability in the face of dynamic market conditions.