MetaMitch Proposal

[tecparamsbot]

What is the overall Commons Configuration strategy?

We need at least 6 months operational budget in the common pool. With this we start with 12, which gives us some for outside proposals. I feel like even 10% at a time is a lot to ask.

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Summary

Module 1: Token Freeze & Token Thaw

Parameter	Value
Token Freeze	24 Weeks
Token Thaw	52 Weeks
Opening Price	1.5 wxDAI

Module 2: Augmented Bonding Curve

Parameter	Value
Commons Tribute	40.00%
Entry Tribute	3.00%
Exit Tribute	3.00%
*Reserve Ratio	25.79%

*This is an output. Learn more about the Reserve Ratio here.

Module 3: Tao Voting

Parameter	Value
Support Required	88%
Minimum Quorum	8%
Vote Duration	5 day(s)
Delegated Voting Period	3 day(s)
Quiet Ending Period	2 day(s)
Quiet Ending Extension	3 day(s)
Execution Delay	1 day(s)

Module 4: Conviction Voting

Parameter	Value
Conviction Growth	5 day(s)
Minimum Conviction	5.0%
Spending Limit	15.0%

Module 1: Token Freeze and Token Thaw

Strategy:

This gives us enough to operate for 1 year

Parameter	Value
Token Freeze	24 Weeks
Token Thaw	52 Weeks
Opening Price	1.5 wxDAI

Hatcher's TEC Release Schedule

This is the release schedule for TEC that was given to Hatchers. Their TEC will start out frozen and then slowly become liquid according to the graph above.

Token Release Timeline

Duration	% of Tokens Released	Price Floor of Token
3 months	0.00%	1.50 wxDAI
6 months	3.85%	1.44 wxDAI
9 months	28.85%	1.07 wxDAI
1 year	53.85%	0.69 wxDAI
1.5 years	100.00%	0.00 wxDAI
2 years	100.00%	0.00 wxDAI
3 years	100.00%	0.00 wxDAI
4 years	100.00%	0.00 wxDAI
5 years	100.00%	0.00 wxDAI

Module 2: Augmented Bonding Curve (ABC)

Strategy:

When we run a bear market and sell 20% of the coins we still stay above 1 wxDai for value.
I like the entry and exit to match, so it doesn't seem usurious. I think 3% is the max transaction charge that's ok.

Parameter	Value
Commons Tribute	40.00%
Entry Tribute	3.00%
Exit Tribute	3.00%
*Reserve Ratio	25.79%

*This is an output. Learn more about the Reserve Ratio here.

Allocation of Funds	wxDAI
Common Pool (Before Initial Buy)	504489.43
Reserve (Before Initial Buy)	756734.14
Common Pool (After Initial Buy)	511989.43
Reserve (After Initial Buy)	999234.14

TEC Price vs ABC Reserve Holdings

The ABC mints and burns TEC tokens, the price of the TEC token is dependent on the funds that is held in the Reserve. This graph shows how the ABC's Price for TEC tokens changes with the ABC's Reserve Balance. The Initial Buy that will happen at launch is highlighted.

Example Transaction Data

Tx	Reserve	Total Supply	Price	Amount In	Tribute	Amount Out	New Price	Slippage
0	756734.14	1956421.69	1.5	250000.00 wxDAI	7500.0	145384.88 TEC	1.84	10.07%
1	999234.14	2101806.57	1.84	5000.00 wxDAI	150.0	2625.89 TEC	1.85	0.18%
2	1004084.14	2104432.46	1.85	100000.00 wxDAI	3000.0	50643.20 TEC	1.98	3.40%
3	1101084.14	2155075.66	1.98	3000.00 TEC	177.97	5754.28 wxDAI	1.97	0.20%
4	1095151.89	2152075.66	1.97	5000.00 wxDAI	150.0	2453.59 TEC	1.98	0.16%
5	1100001.89	2154529.25	1.98	50000.00 TEC	2872.16	92866.49 wxDAI	1.85	3.29%
6	1004263.25	2104529.25	1.85	3000.00 wxDAI	90.0	1570.81 TEC	1.85	0.11%
7	1007173.25	2106100.06	1.85	100000.00 TEC	5194.65	167960.49 wxDAI	1.61	6.63%

ABC Overview

Reserve (wxDai)	Supply (TEC)	Price (wxDai/TEC)	Market cap
10,000	641,162	0.06	38,785.79
50,000	970,943	0.20	193,906.52
100,000	1,160,959	0.33	387,807.72
200,000	1,388,163	0.56	775,610.15
300,000	1,541,160	0.75	1,163,412.42
400,000	1,659,834	0.93	1,551,214.12
500,000	1,758,143	1.10	1,939,015.84
600,000	1,842,774	1.26	2,326,819.20
700,000	1,917,499	1.42	2,714,620.31
800,000	1,984,674	1.56	3,102,422.48
900,000	2,045,877	1.71	3,490,224.97
1,000,000	2,102,223	1.84	3,878,028.24
1,250,000	2,226,733	2.18	4,847,532.91
1,500,000	2,333,921	2.49	5,817,040.10
1,750,000	2,428,562	2.79	6,786,543.99
2,000,000	2,513,641	3.09	7,756,049.71
2,500,000	2,662,519	3.64	9,695,061.79
3,000,000	2,790,684	4.17	11,634,073.40
3,500,000	2,903,847	4.67	13,573,082.63
4,000,000	3,005,576	5.16	15,512,093.67
5,000,000	3,183,591	6.09	19,390,116.02
7,500,000	3,534,474	8.23	29,085,175.31
10,000,000	3,806,641	10.19	38,780,231.90
15,000,000	4,226,193	13.76	58,170,340.86
20,000,000	4,551,625	17.04	77,560,449.48
50,000,000	5,764,752	33.64	193,901,147.55
100,000,000	6,892,951	56.26	387,802,276.24

Module 3: Tao Voting

Strategy:

give a quick timeline for metagovernance proposals to pass. if there is contention then we add a generous extensions for maxiumum community input.

Parameter	Value
Support Required	88%
Minimum Quorum	8%
Vote Duration	5 day(s)
Delegated Voting Period	3 day(s)
Quiet Ending Period	2 day(s)
Quiet Ending Extension	3 day(s)
Execution Delay	1 day(s)

Tao Voting Timeline From Proposal To Execution

This shows how the timeline stacks up for yes/no time based votes that can change the configuration after launch.

Timeline Data

# of Quiet Ending Extensions	No Extensions	With 1 Extension	With 2 Extensions
Time to Vote on Proposals	5 days	8 days	11 days
Time to Review a Delegates Vote	2 days	5 days	8 days
Time to Execute a Passing Proposal	6 days	9 days	12 days

Module 4: Conviction Voting

Strategy:

bumping it up to 15% we can reasonably see successful funding requests for 10%, which is a good chunk of money for funding WGs and bootstrapping projects.

Parameter	Value
Conviction Growth	5 day(s)
Minimum Conviction	5.0%
Spending Limit	15.0%

Minimum Percent of Voting Tokens Needed to Pass Funding Requests

This shows how the minimum percent of tokens needed to pass proposals after 2 weeks varies with the percent of the Common Pool funds being requested.

Example Funding Request Data

Proposal	Requested Amount (wxDAI)	Common Pool (wxDAI)	Effective supply (TEC)	Tokens Needed To Pass (TEC)
1	1,000	100,000	1,500,000	86096
2	5,000	100,000	1,500,000	168750
3	25,000	100,000	1,500,000	Not possible
4	1,000	750,000	1,500,000	76351
5	5,000	750,000	1,500,000	82138
6	25,000	750,000	1,500,000	123979

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Parameter Definitions

Token Freeze and Token Thaw

• Token Freeze: 24 weeks, meaning that 100% of TEC tokens minted for Hatchers will remain locked from being sold or transferred for 24 weeks. They can still be used to vote while frozen.
• Token Thaw: 52 weeks, meaning the Hatchers frozen tokens will start to become transferable at a steady rate starting at the end of Token Freeze and ending 52 weeks later.
• Opening Price: 1.5 wxDAI, meaning for the initial buy, the first TEC minted by the Augmented Bonding Curve will be priced at 1.5 wxDAI making it the price floor during the Token Freeze.

Augmented Bonding Curve (ABC)

• Commons Tribute: 40.00%, which means that 40.00% of the Hatch funds (504489.43 wxDAI) will go to the Common Pool and 60.00% (756734.14 wxDAI) will go to the ABC's Reserve.
• Entry Tribute: 3.00% meaning that from every BUY order on the ABC, 3.00% of the order value in wxDAI is subtracted and sent to the Common Pool.
• Exit Tribute: 3.00% meaning that from every SELL order on the ABC, 3.00% of the order value in wxDAI is subtracted and sent to the Common Pool.

Tao Voting

• Support Required: 88%, which means 88% of all votes must be in favor of a proposal for it to pass.
• Minimum Quorum: 8%, meaning that 8% of all tokens need to have voted on a proposal in order for it to become valid.
• Vote Duration: 5 day(s), meaning that eligible voters will have 5 day(s) to vote on a proposal.
• Delegated Voting Period is set for 3 day(s), meaning that Delegates will have 3 day(s) to use their delegated voting power to vote on a proposal.
• Quiet Ending Period: 2 day(s), this means that 2 day(s) before the end of the Vote Duration, if the vote outcome changes, the Quiet Ending Extension will be triggered.
• Quiet Ending Extension: 3 day(s), meaning that if the vote outcome changes during the Quiet Ending Period, an additional 3 day(s) will be added for voting.
• Execution Delay: 1 day(s), meaning that there is an 1 day delay after the vote is passed before the proposed action is executed.

Conviction Voting

• Conviction Growth: 5 day(s), meaning that voting power will increase by 50% every 5 days that they are staked behind a proposal, so after 10 days, a voters voting power will have reached 75% of it's maximum capacity.
• Minimum Conviction: 5.0%, this means that to pass any funding request it will take at least 5.0% of the actively voting TEC tokens.
• The Spending Limit: 15.0%, which means that no more than 15.0% of the total funds in the Common Pool can be funded by a single proposal.

Advanced Settings*

Parameter	Value
HNY Liquidity	100 wxDAI
Garden Liquidity	1 TEC
Virtual Supply	1 TEC
Virtual Balance	1 wxDAI
Transferable	True
Token Name	Token Engineering Commons
Token Symbol	TEC
Proposal Deposit	200 wxDAI
Challenge Deposit	400 wxDAI
Settlement Period	5 days
Minimum Effective Supply	1.0%
Hatchers Rage Quit	60000 wxDAI
Initial Buy	250000 wxDAI

*Learn more about Advanced Settings on the TEC forum

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