Title: Update Discount Rate to 2.5%
Author: filipv
Date: 2022-06-01
Thesis
Update discount rate to 2.5%.
Motivation
Many systemic issues the DAO faces are related to token issuance. By keeping the discount rate so high for so long, the DAO has done two things:
- Reduced fee-resultant JBX issuance, and thereby
- Reduced reserved JBX issuance for contributors
As the discount rate dips downwards, the relative utility of issuance to project creators and DAO contributors will increase. This vested interest will contribute towards aligning the incentives for the entire community.
Risks
This may reduce the possibility of a “JBX moon”, but in my opinion increases JBX’s long-term prospects by aligning the community.
Timeline
We ought to reassess by FC#30, but no worries if not :^)
I think this number should tend towards zero for a while.
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