The cooperative buying back tokens on the market is not sustainable model. Projects doing that are generally projects which ends up with more value in their treasury than their marketcap so basically it acts as an anti-sale. This would also give really perverse incentives as we would then have interest for the price to crash to still have runaway.
You wouldn’t end up with it in your treasury as you would immediately spend in on your rewards and compensation. I do not understand how the incentive would arise to crash the price as you do not have to always give out the same amount of PNK for rewards or bonuses but just tie it to an amount of ethereum or dollars you would give out as you’d have to do anyways should the price get too high.
Without going much into details:
- the allocation was allocated right from the beginning
(end of story)
Seems a “no-brainer” to me
The whole interest of PNK based compensation is to tie team member compensation to the success of the project such that they have the same incentives as token holders. Those compensations are labelled in PNK, not in USD. If they collectively do a good job, they get a better compensation, if they don’t they get a lower one.
Think you are contradicting yourself. If pnk doesn’t hold its value or not a store of value then it’s a depreciating asset/currency. In that case what’s the point of holding and collecting fees that slowly turns zero over time?
Completely agree on the fact that part of compensation for team members’ work has to be in PNK to keep incentives aligned with project’s growth and product’s quality.
As for the minting process, everyone really involved in the project would know that it has always been part of the plan and that it stays within the 1B token cap.
On the planning aspects, I am sure you guys have some rationale to explain the amount requested in this proposal:
- Which percentage of the 200M tokens will be allocated to which of the 3 purposes exposed (Coop reserve, Airdrops, Team allocation for new members) ?
- How much time those 200M tokens will allow sustaining the 3 activities mentioned above ?
Arbitration fees are collected in ETH not in PNK.
Well you may want to store value in it but that’s not what it’s made for. PNK is more akin to taxi medallion as it allows you to provide a services and be compensated for it.
Store of values like BTC are unproductive assets where the reason to hold them is to sell / pay something with them.
The reason to hold PNK is to stake it to be drawn as a juror and get paid arbitration fees.
So they did not do a good job with managing the funds or whatever so you’re inflating the currency? Would that be a good example of how your dogma works?
This proposal doesn’t propose to inflate the supply. It just executes part of the allocation plan made in 2017 and displayed in all token sale materials.
And yes, the fact that a lot of people understood it as inflating the expected and sold token has decreased the value of the PNK compensation of the whole team.
Alright, I guess I’m happy with that even tho I imagined the minting to be on a larger timeframe. But if I think about timing such an event I’d have to have a lot more information and I still believe Schelling was right and there is a use case. Keep it up guys.
Minting doesn’t mean spending right away. But if people are concerns by this, we could make a minting proposal over a time period, with a bit more unlocked each time.
Ok, let’s test how upfront the team is willing to be.
Tell us exactly which large centralized exchanges the team aims to list (name them) on and exactly how much PNK each exchange requires for liquidity.
And no bullshit excuse about not knowing- the team should know this exact info if this is the reason for minting.
This is not the reason for minting. The reason for minting is that since 2017 a token plan (put clearly and prominently in both sales) allocating some tokens for cooperative spending has been made and the team has been making PNK spending decisions according to this plan (team member part, reward programs incentivizing usage of new dapps and building on top of Kleros).
We cannot speculate on further listings but for example, there is approximately 15 000 000 PNK of liquidity in Uniswap which is the exchange where the highest quantity of liquidity was provided.