Cancelled

JBP-30: 🧃JBX Token Mechanics

Author

Anon

Cycle

11

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  • Problem:
    • Based on today's protocol token structure there is no way to control the amount of JBX tokens minted and the amount of funding added to the JBX treasury-> the upper limit does not exist. This causes:
    • Large and underutilized treasury
    • Un-necessary token dilution for he DAO and existing token holders
  • Proposal:
    • Stop JBX token emission till the launch of V2 and implementation of new token mechanics
    • Create an upper bound limit to the number of JBX tokens minted every cycle
  • Proposed Token Mechanics:

    • Initial ETH ratio

      • Liquid market exists - based on 72 hour average of trading pair
      • No liquid market - manually set by DAO members

    • In cycle ratio increase

      • Up to cycle funding target - Till the cycle funding target is met all ETH ratio will be maintained at the pre-set
      • Above cycle funding target - Every 2x increase in funding, the ETH ratio increases by XX% (variable that can be set by the DAO)

        • Numerical example:

          • Initial funding target: 10 ETH. Initial ratio: 1 eth to 100 JBX ETH
          • Up to 10 ETH - mint 1000 JBX
          • DAO elects for a 20% increase ratio
          • Next 10 ETH - mint based on a ratio of 0.012 JBX:ETH ratio
          • Next 20 ETH (double of total funding thus far) - mint based on a ratio of 0.0144 JBX:ETH ratio

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    • Project payments to JBX: included with the all types of funding

      • Projects are paying JBX for contract usage, in most cases (ETH) any project using ETH is not getting anything in return, in the case of JBX, the platform incentivizes projects by providing them with JBX tokens
      • Projects are paying JBX for contract usage, in most cases (ETH) any project using ETH is not getting anything in return, in the case of JBX, the platform incentivizes projects by providing them with JBX tokens
      • All tokens received by projects are subject to a 1Y lockup (can't sell)
  • What it creates:
    • Liquid market <> minting mechanics - the market will find an equilibrium between liquid markets and minting
    • Early contributors to the treasury and adopters of the protocol are rewarded not just between cycles, but also within cycle

Votes

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