diff --git a/inbox/archive/2024-11-18-futardio-proposal-adopt-a-sublinear-supply-function.md b/inbox/archive/2024-11-18-futardio-proposal-adopt-a-sublinear-supply-function.md new file mode 100644 index 00000000..c75fe1f2 --- /dev/null +++ b/inbox/archive/2024-11-18-futardio-proposal-adopt-a-sublinear-supply-function.md @@ -0,0 +1,89 @@ +--- +type: source +title: "Futardio: Adopt a sublinear supply function?" +author: "futard.io" +url: "https://www.futard.io/proposal/5YA1NbUJWmGLorWtpTzBMfsMFLKa37oxb7pHwH7wSz9L" +date: 2024-11-18 +domain: internet-finance +format: data +status: unprocessed +tags: [futardio, metadao, futarchy, solana, governance] +event_type: proposal +--- + +## Proposal Details +- Project: ORE +- Proposal: Adopt a sublinear supply function? +- Status: Passed +- Created: 2024-11-18 +- URL: https://www.futard.io/proposal/5YA1NbUJWmGLorWtpTzBMfsMFLKa37oxb7pHwH7wSz9L +- Description: Should ORE migrate to a deflationary emissions curve and reduce the supply cap to 5m tokens? +- Categories: {'category': 'Governance'}, {'category': 'Program'} +- Discussion: https://discord.gg/hRBrVmf48q + +## Summary + +### 🎯 Key Points +The proposal suggests reducing ORE's supply cap from 21 million to 5 million tokens and implementing a 10% annual reduction in emissions rate. + +### πŸ“Š Impact Analysis +#### πŸ‘₯ Stakeholder Impact +This change aims to enhance token scarcity, potentially benefiting current holders and attracting new investors. + +#### πŸ“ˆ Upside Potential +A deflationary emissions curve could lead to increased demand and higher token value over time. + +#### πŸ“‰ Risk Factors +The significant reduction in supply may create uncertainty in the market and could negatively affect liquidity. + +## Content + +## Summary + +Should ORE migrate to a deflationary emissions curve and reduce the supply cap to 5m tokens? + +## Overview + +When ORE launched in April 2024, it was built with a linear emissions rate of 1 ORE/min and uncapped total supply. In response to overwhelming feedback from the community, we introduced an artificial supply cap of 21m tokens in the redesign of v2. + +Over the last few months, the ORE community has continued to voice interest in accelerating ORE’s distribution. After considering a series of alternative models, we would like to propose the following changes be made: + +1. Reduce the supply cap from 21m to 5m tokens +2. Reduce the emissions rate by 10% every 12 months + +ORE's current limit of 21m tokens was originally chosen to mimic Bitcoin's famously popular total supply count. With a supply cap 4.2x lower, ORE's supply will be an order of magnitude more scarce than Bitcoin when fully-diluted. + +Rather than infrequent "halvings" every 4 years, we believe ORE's mission would be better served by reducing +emissions at a more gradual 10% per year. This would provide a faster, smoother, and scarcer distribution curve than Bitcoin. .ORE's supply schedule would roughly follow the timeline outlined in the table below and reach full dilution by approximately 2052. + +| Year | Circulating | Dilution | +| ---- | ----------- | -------- | +| ~5 | 2.5m | 50% | +| ~18 | 4.5m | 90% | +| ~28 | 5m | 100% | + +We believe these changes strike an ideal balance between all the competing value sets in the ORE community: + +- It reduces FDV to address sticker shock of buyers. +- It introduces a deflationary curve that decays faster than Bitcoin. +- It caps the supply an order of magnitude more scarce than Bitcoin. +- It provides ~30 years of mining runway for onboarding initiatives and liquidity incentives. + +If passed, we will implement these changes and migrate the mainnet mining program. This would represent a major step forward in ORE's hardening process and bring us one step closer towards freezing the contract for good. + +To discuss this proposal, join the Discord and let your voice be heard. +[https://discord.com/channels/1226038272673841236/1306330694917554257](https://discord.com/channels/1226038272673841236/1306330694917554257) + +![](https://imagedelivery.net/HYEnlujCFMCgj6yA728xIw/e76eff8c-8a73-4395-5db0-4939b02e0e00/public) + +![](https://imagedelivery.net/HYEnlujCFMCgj6yA728xIw/0127d0d5-ec72-47cf-f882-fa3a63267100/public) + +## Raw Data + +- Proposal account: `5YA1NbUJWmGLorWtpTzBMfsMFLKa37oxb7pHwH7wSz9L` +- Proposal number: 2 +- DAO account: `7XoddQu6HtEeHZowzCEwKiFJg4zR3BXUqMygvwPwSB1D` +- Proposer: `proPaC9tVZEsmgDtNhx15e7nSpoojtPD3H9h4GqSqB2` +- Autocrat version: 0.3 +- Completed: 2024-11-22 +- Ended: 2024-11-22