Discussions at the proposal stage can be found here.
Q & A
Why is there a request from minting?
Contrary to most projects who minted everything at the beginning (leading to the developing entity owning most of the supply), only a small proportion of the token allocations were initially minted letting the remaining be minted across time with governance votes.
Why do you need cash?
We don’t need generic cash, we need PNK which is a completely different need. It’s important for reward programs to be in PNK and for a part of team member compensation to be in PNK in order to align incentives.
Are you taking PNK for yourself?
Founders already got their PNK and this proposal would not increase the amount of PNK they’ll get.
Are those PNK gonna be dumped on the market?
No, they are not to be sold on the market but are to be used as part of reward programs, new team member compensation, liquidity and to accommodate large OTC sellers.
Is there an increase of the rate of PNK being spent?
With the successful sale, the team is expending, team members get the majority of their compensation labelled in $ and a smaller part in PNK. The spending of PNK stays almost constant as even if some team members are joining, the PNK price is higher so the effects more or less compensate.
Is there a conflict of interest?
No, this proposal does not increase the amount of PNK given to the founders. Founders have the same incentives as any PNK holders and if we make this proposal it is obviously that we believe it to be positive.
What will happen if the proposal is denied?
It is possible to make another one asking for a smaller amount to mint. If it is rejected too, reward programs would stop and we would have to negotiate with team member of change of their PNK part of compensation to fiat which would decrease their incentives to work well on Kleros.
Extract of the transparency report
Kleros Total Token Allocation
Founders and team members commit to work on the project for 3 years (from the time they started). While this amount is fully locked for the first year, after one year, they can claim the amount of tokens corresponding to their first year working at Kleros.
Cooperative Reserve Tokens
Coopérative Kleros has an allocation of 120,000,000 PNK which are mostly used for the payment of bounties, marketing activities and to provide liquidity in exchanges.
Airdrop Tokens
Sale Tokens
Community feedback
Due to some people expressing concerns about the proposal. We gathered some community feedback and alternative proposals. It was proposed to:
- Mint less tokens at once.
- Mint all the tokens right now (the justification being to avoid potential FUD created by minting events).
- Mint tokens over time to ensure the cooperative doesn’t have large amounts of PNK at any but constant resource allocation.
After gathering alternative proposals. We ran two polls about the proposal to evaluate community feeling about them.
The first poll indicated that only a minority (13%) were against of the minting of tokens according to the 2017 plan. And that most people supported the minting of 200M PNK, in one time, in 4 times or to mint the whole 1B PNK at once.
To find a consensual proposal, we ran a second poll asking people to rank (see Condorcet methods) the proposals which were on top of the first poll.
We found that proposal A. “The Kleros DAO mints 200M PNK to the cooperative.” (initial proposal) was the consensus proposal (according to the poll, the final decision is to be made by the Kleros, the polls are just there for us to get early feedback) at it would won all its duels against other proposal:
A VS B: 58% for A.
A VS C: 73% for A.
Therefore it seems that the initial proposal is the most consensual and the one we will submit to vote first.