,
11 tweets,
3 min read
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1/ Thread on On-Going Project Funding
This is a trend I am seeing that will only-gain in momentum in my mind. There are too many funding issues in the space popping up
🔺Transparency (ethereum foundation)
🔺Projects running (ETC cut teams, SteemIt, R3 etc)
This is a trend I am seeing that will only-gain in momentum in my mind. There are too many funding issues in the space popping up
🔺Transparency (ethereum foundation)
🔺Projects running (ETC cut teams, SteemIt, R3 etc)
2/ Just today @0xProject announced it is attempting to implement a community treasury, with token holder control.
🔸Addresses on-going funding (if the protocol is being used)
🔺 Lacks a UI/UX proposal for token holders to voice direction of treasury
🔸Addresses on-going funding (if the protocol is being used)
🔺 Lacks a UI/UX proposal for token holders to voice direction of treasury
3/ Treasuries = fork resistance
🔸If you fork away, you lose the monetary value of the treasury
🔸Treasury enables an outside party to propose changes that can be funded by the treasury, instead of their own pockets via a fork (only open to rich). Drives greater network effects
🔸If you fork away, you lose the monetary value of the treasury
🔸Treasury enables an outside party to propose changes that can be funded by the treasury, instead of their own pockets via a fork (only open to rich). Drives greater network effects
4/ On-going protocol level funding removes the need to productize upgrades
🔸For example, in $DCR, a developer can propose an upgrade and get paid in DCR. Same with $XTZ.
🔸This removes the need to productize services, which could add friction to the use case and development
🔸For example, in $DCR, a developer can propose an upgrade and get paid in DCR. Same with $XTZ.
🔸This removes the need to productize services, which could add friction to the use case and development
5/ For Example
🔸 @lightning / @Blockstream are doing phenomenal work on expanding $BTC's tech/capabilities. But they will eventually have to make money.
🔺Investors = realistic plan to earn money
🔸 @lightning / @Blockstream are doing phenomenal work on expanding $BTC's tech/capabilities. But they will eventually have to make money.
🔺Investors = realistic plan to earn money
6/ Instead
🔸Submit a proposal to a treasury, and get paid in tokens. This removes the need to have to earn income on a project or service that is created.
🔸No need to productize = less friction + potentially better apps.
🔸Submit a proposal to a treasury, and get paid in tokens. This removes the need to have to earn income on a project or service that is created.
🔸No need to productize = less friction + potentially better apps.
7/ Treasury aligns stakeholders
🔸Those who own/build on the platform have an incentive to increase the value of the treasury and tokens, since they would be paid in them.
🔸 Brings on non-altruistic builders who can also pay their bills.
🔸Those who own/build on the platform have an incentive to increase the value of the treasury and tokens, since they would be paid in them.
🔸 Brings on non-altruistic builders who can also pay their bills.
8/ Funding is vital
🔺Projects need a model for decades long funding that is central to the protocol itself.
🔸 Funding = path for long term evolution and upgrades by a global base of non-altruistic parties. One-off changes are NOT enough.
🔺Projects need a model for decades long funding that is central to the protocol itself.
🔸 Funding = path for long term evolution and upgrades by a global base of non-altruistic parties. One-off changes are NOT enough.
9/ Example
🔸 $DCR is the easiest example I point to. 10% of block rewards go to a treasury, anyone can submit a proposal, anyone can vote. Just buy a ticket. Simple.
🔸 $DCR is the easiest example I point to. 10% of block rewards go to a treasury, anyone can submit a proposal, anyone can vote. Just buy a ticket. Simple.
10/ New Value Accrual Model
🔸 $ZRX’s treasury proposal appears to be denominated in ETH. This could usher in a new way to value projects (I.e. how much of a base asset they are accruing times some multiple).
🔺 Only works of the protocol is actually successful (TBD)
🔸 $ZRX’s treasury proposal appears to be denominated in ETH. This could usher in a new way to value projects (I.e. how much of a base asset they are accruing times some multiple).
🔺 Only works of the protocol is actually successful (TBD)
11/ Issues
🔺Real token holder control
🔺Allocation of treasury funds in real time
🔺Fork and create new treasury. Hard not impossible.
🔺Converting treasury to USD is an option, but adds token level sell pressure
🔺Probably 100 more things
/Fin
🔺Real token holder control
🔺Allocation of treasury funds in real time
🔺Fork and create new treasury. Hard not impossible.
🔺Converting treasury to USD is an option, but adds token level sell pressure
🔺Probably 100 more things
/Fin
