Weekly Contributor Meeting Update - Should we Reduce Token Emissions?

Notes from 9/22/2021 Weekly Meeting #1

  • Chinese-speaking vs. English-speaking communities - should we have a dedicated translator? Sharlyn thinks we don’t need to formalize this too much. We really appreciate everyone doing this work and encourage anyone who is bilingual to continue to translate our primarily-english communications into Chinese 謝謝!

  • Boule elections - We have a very qualified group of Boule candidates, some of whom seem to not have much time to dedicate to the DAO. Is it advantageous to trim this group down from 40+ to 30 members? We agreed that we need a small, tight-knit group to handle day-to-day DAO governance. Its also good to have people with great connections incentivized to bring DeFi projects to the DAO early on, even if they aren’t very active in governance.

  • Proposal - incentivize bringing high quality projects early. Reward ALD to people who sponsor listings. If the project gets voted in, the sponsor receives a reward. We also floated the idea of making deals with individual DeFi protocols to buy and burn ALD tokens in exchange for liquidity. Specific proposal in the works. Tom will write a more thorough post on this idea.

  • Proposal - Remove some sell pressure on ALD by reducing or vesting token emissions - General consensus was to move quickly on this point specifically.

    • Quick solution: reduce token emissions or lock mined tokens for a period of time. Sushi voted to do this a few days ago: Snapshot
    • Another possible solution: Add a staking feature, in which it is allowed to remove tokens before they vest, but you incur a penalty. Development team says this would take about a month to ship. Ellipsis Finance has this design, you can read about it here: Staking and Liquidity Providing Rewards - Ellipsis Finance
  • Let’s use discord as the primary place of discussion between Boule members. Let’s use the public channel as much as possible in the spirit of collective ownership and governance.

  • Multi-chain - There are lots of good projects outside the Ethereum ecosystem. How do we want to interact with other chains? Cross-chain bridges work well for small amounts of capital, but would they work for Aladdin DAO? Should we build sub-daos that run natively on other chains? In this case would there be one Boule across chains or chain-specific Boules? People agree that Ethereum Layer 1 is very expensive and it would be great to find a Layer 2 to move onto in the short term.

We would love to hear from the community, especially in regards to the token vesting or reduction proposal bolded above.

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YES ! BSC please
Layer 2 - Arbitrum?

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I suggested to have designated people to report shortly on the weekly call, best would to have somebody who is present in both worlds.

Voting for Boule members has been on the plan from the start, but for sure we lose good people with the 10 who are not voted into the Boule.

In the original design, the boule members are part of the product and should use their expertise to select the best yield farms. As Boule members get a lot of ALD token for this, they will also have a big stake over time. Because Boule members have a lot of insight in this industry, they could also be a source of governmental power, but in the current design this is not formalized. I think the boule members should try to coordinate themselves to get a unified voice in the AladdinDao.

I think this touches several important points:

  1. How to be early? We all know that being early is high rewarded in crypto.

  2. Some form of “B2B” Product which benefits both parties. Not sure about the burn part. Why not make a token swap with these projects? This would diversify AladdinDaos treasury and have more upside potential in the long term. We could give out veALD tokens with 4y lock-up, (if we go in this direction) and put some vesting on the project token we get.

  3. Risk: I think one of the core values of AladdinDao is long term thinking. I guess 95% of this new projects will not make it long term. So how can we be transparent about this risks? AladdinDao should reduce information asymmetric for retail, but if we introduce high risk pools how to handle this? I think it’s a great idea, but we have to make it very clear that this unproven projects are much more risky. With some clever product naming or sub brands this may be solved: (Degen Pools, High Risk, Innovation Pools)

I like the penalty on withdraw like Ellipses does, but I also think we should go for a technical simple version which is easy to build.

Yes, I also suggest to have the next weekly call on discord!

I think different chains may need different Boules. Myself I’m mostly mainnet focused, I have limited information who are the big players on BSC. These chains have a different user structure and sometimes even “local” user groups. (L 1, sidechains). For true L2 this may be different as they are much more similar to mainnet. Nothing stops people to be on two different boules and may be even a good idea at the start, but then success or fail of these local boule members will diversify and develop the boules into different directions. We have carefully think about this, because undo stuff needs a lot of resources.

I will put a link to the call if it’s available on youtube…

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Ha, this are the L1/L2 I have in mind too :wink: But we need time to get there…

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I think it is in the community’s general consensus and best interests to release tokens as utility and demand catch up. Therefore there are benefits to reduce token emissions as an interim solution. Sushi did this before and it was well received.

Would like to propose the following options for the community to consider:

Option 1) 1/2 tokens are locked for 3 months
Option 2) 2/3 tokens are locked for 3 months
Option 3) retain the status quo

The reduced emissions can be vested over 4 weeks.

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Token vesting seems like a reasonable quick fix. However we don’t want to be over-reliant on this mechanic. For example SPELL tokens are highly inflationary on Curve MIM pool without vesting but enough people are buying and staking because of the TVL and multichain growth (whether this is sticky or sustainable is questionable, just what the market values). Farmers don’t see the narrative for how ALD can grow and therefore dump it. So there is some marketing aspect as well for crypto twitter whales to ape in.

I think implementing a single stake pool is good for boule members to signal their commitment, as well as retail to feel part of a community. We can also issue NFT collectibles for the ‘diamond handers’ who don’t dump tokens or lock.

Multichain is a nascent space for farming, it will certainly improve TVL but also tax the strategists and potentially dilute the quality of projects. Worth pursuing once initial council has been elected and operating smoothly.

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The vesting and staking proposals seem like a fairly reasonable course of action for the shorter term. But I think it’s only addressing part of the problem - as of now the ALD farms are probably attracting primarily mercenary capital because of the yields (definitely not unique to Aladdin, I recognize).

I would prefer adding a vesting component to rewards, and not reducing the emission rates outright. It’s still early and I think the relatively high APYs are needed to continue attracting new folks.

Also agree that single sided staking would also be a quick win to give people an IL-free option.

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nice work,keep moving forward

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Agree with that and with @martinkrung’s comments. It’s probably easier to start with a small rather than large group to cultivate culture and processes.

I’m neutral as to personally stick around or revisit opportunity to contribute at a later stage.

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The above proposal for staking is fair approach. If I may add, we should start thinking about deflation economy of $ALD with staking like EIP1559.

I recently found the interesting price move between $THETA and $TFuel. $THETA is just governance token while $TFUEL is transactional token to run their P2P CDN which they implemented deflation economy mechanism since Mainnet 3.0 from this June. With the expectation of it deflation economy effect, $TFUEL performance has been overwhelming $THETA with 3 times.

We don’t have to rush ourselves to design this deflation model for $ALD, but, it’s worth to discuss continuously to reach a most scrabble model for our token economy.

Mainnet 3.0 Update — TFUEL Burning and Transaction Fee Increase

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Thanks, for sure we need a kick-ass tokonomics down the road, but main focus right now is to make the product fly. If we have a successful product the token value will follow project/product value and/or we will change tokenomics accordingly

Next Weekly call is today, 2021/09/29:

Link to discord of this massage:

And we talk about this:

If you want to see what we are working on, look at the #contributors-public channel on discord:

(Discord invite here: AladdinDAO)

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