Factom Tokenomics Proposal

Should we hardcode this token proposal into the protocol?


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This is a proposed new Factom Token Model for a major timed discussion and vote.

This revised Token Model proposal is the resulting product from several weeks of soliciting input and guidance from the community.

The token model proposal can be viewed here: https://docs.google.com/document/d/1yIXWeXSEF-GbFw6KP7WIgAUoZ7L3Bs2j_Zdxvgai0L4/edit?usp=sharing

Changes from the previously presented draft proposal are:
  • The proposal’s scope has been narrowed and all features outside the core token model have been removed.
  • All content potentially controversial has been removed: this proposal is meant to be apolitical and appeal to the ENTIRE community
  • The proposal has been signifncaly shortened and simplified
The proposed token model has three goals:
  • mint tokens in a sustainable way
  • align incentives with protocol use
  • give Factom a stronger "store of value" use case
Proposal Summary
  • Introduces a maximum circulating token limit of 20,000,000 (UPDATED) FCT.
  • Minted tokens are added to the current token circulation, burns remove them.
  • Token minting capacity is split into conditional ‘ad hoc’ mints to pursue development objectives and scheduled mints to cover protocol rewards programs.
  • Token minting capacity is inversely proportional to the current tokens in circulation; thereby creating a proper, shared incentive towards usage and promoting good stewardship.
Implementation: if approved, the proposed token model will be hard coded into the protocol. Paul Snow has expressed a willingness to lead this effort. Timeline for implementation would be second quarter of 2021.

This proposal was made possible from invaluable input from people across the community. Special thanks is warranted to Hinamatsuri for providing significant feedback during the proposal’s draft public discussion and to ANOs Cube3, Kompendium, HashnStore, Factom Inc, and to Vidale (formerly of Factoshi) for doing the work of debating, drafting, and refining this proposal over the past few months.
 
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