IMPORTANT: Final chance to weigh in on Development/Community funding percentage

We are in need to decide the Development/Community funding percentage ASAP.

About a year ago, I started this thread to gauge sentiment for Zcoin development funding after block halving. As we approach the halving date, it is imperative to get a final decision in.

I am starting this new thread to do one final round of sentiment gathering.

The general sentiment from the previous thread seems to be okay for a renewed development fund of between 10-20% of the block reward to go to the core team.

To maintain the same level of funding as today, we would need 12% of the block reward (approximately 13k XZC a month).

Taking into consideration everyone’s feedback, I am proposing the following:

15% Dev Fund (2 year duration)
35% Znodes
50% Miners

Prior to the end of two years, another discussion is had so that the core team can be replaced if we aren’t doing a good job.

What does everyone think of this?

Why I’m proposing 15% is that given these tough times, with current levels of funding (which would be equivalent to 12%) and the price of Zcoin, it’s been really hard to expand our team of developers or to spend more with on community awareness or adoption efforts. Therefore a little extra and some breathing room would be good as I believe we do need additional developers to stay ahead in an increasingly competitive environment.

If the price of Zcoin increases and there is excess the core team can segregate off a separate fund can be started to be managed by trusted community members that are not related to the core team. This is in a way decentralizing and creating a culture of collective responsibility.

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I am happy with this breakdown of the block rewards after the halving. It’s always good to hold a little in reserve in case the ‘crypto winter’ drags on.

On this matter:

I think that it is important to define, at this stage:
a) at what XZC price the separate fund is set in motion (probably a function of the fiat cost of running the dev team)
b) How the community members will be elected to manage the fund (for example by a secret ballot implemented with tokens on the zcoin blockchain)
c) Who will be eligible to vote in the election (for example: znode owners, founders or maybe just anyone who knows how to operate a crypto wallet)
d) What would be the objective of the new fund when it came into being (for example increasing real world adoption of zcoin as a currency)
e) who will be eligible to stand for election (for example anyone that owns a Zcoin T shirt, anyone who has posted more than 2 comments in this forum, or anyone with a XZC wallet address)

I would say that the XZC core team should do a) & b) and that the community should weigh in their proposals for c), d) & e)

If things like this aren’t decided now then it will only lead to squabbling in the event that XZC has a massive price increase after the release of Lelantus - as we all hope it will :grinning:

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That is really good feedback @Thorfried and the exact kind of feedback we are seeking.

I think if the total amount that the core will receive is over 100k USD a month (even with the community pot taken out) then those funds can be separately allocated to the community pot.

I’m proposing that past the 100k USD, the community pot would not exceed 3% of the entire reward though as this is still a test and currently our community engagement is rather low (which is a trend we’re seeing in the entire industry at the moment). This would be a good test.

I have posted a suggested structure for it here to keep this thread on topic.

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15% is a bit stiff
what happens when price is 1 dollar tomorrow, will you want 30% of the block reward ?
10% dev fund is the maximum you can get away without being laughed at

Note that with halving we would need 12% to even match current levels of funding and we’re honestly running on a shoe string budget.

15% Dev Fund
35% Znodes
50% Miners
is great for me

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15% sounds reasonable to me, we have to take into account the zcoin halving is soon (within this year).

If the price of Zcoin increases and there is excess the core team can segregate off a separate fund can be started to be managed by trusted community members that are not related to the core team. This is in a way decentralizing and creating a culture of collective responsibility.

This is the tough part, how do we implement it. Thorfried brought up some good points.
100k USD and 3% parameters should be adjustable by voting in future too.

I like the concept of a 15% block reward to the Dev Fund, I would recommend setting a future date perhaps 2-3 years in the future for review and re calibration as needed. Additionally potentially getting a safeguard review process in place in the event of a massive price increase would be great so the Dev Fund isn’t 'Electric Coin’ing it so to speak on the off chance that the coin price has a massive spike :smile:

15% Dev Fund
35% Znodes
50% Miners

This is reasonable ,although Dev is high I think we need funding in this area and it make sense to have it at 15%. Also DIGITAL voting is needed at this critical time let’s push the agenda!

As per the meeting and the previous forum posts, the general consensus seems agreeable to a 15% Dev Fund for 2 years post halving.

50% miners and 35% Znodes seem to be accepted especially given the increased role of Znodes post chain-locks.

Anything above a USD100k/month will be placed in a separate ‘general’ fund that won’t be touched unless for rainy days / until the emergence of a separate community council.

A transparency report will be posted with a summary of expenses and income each month.

There will be one more month of community feedback with last feedback closing off on the 30 April 2020. If there are any further feedback on the above proposal please do weigh in before the deadline!

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I think we need the following:

15% Dev
40% Znode
45% Miners

You can’t cut Znode owners as some own 1/2 nodes, some own since ATH and with the growing number of nodes the payment keeps getting less and less. So as a Znode owner people keep getting less and less. Imagine after halving what the payment will look like. Znode owners have big skin in the game and many for years dare from break even. Now if someone owns 20,50, 100 MN they may not mine getting less % but with such a big number they will be ok but we are not here to look after whales but everyone.

Miners tend to keep switching between coins and many just mine it to sell it. The 5% extra from the Znode owners can cover for the electricity cost and they still will get a decent return.

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Note that 15% return per annum is considered quite high for a Znode. Past halving it would be more like 8% or so.

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I would agree but not at this price. Should the price increase by few X I think then it’s fare.

Ahh after I got to look up few things, It is ok to have temporary 15% dev fee for 2 years (there are a lot of upgrades that needs to be done) as long as it is temporary !

But there should be some permanent dev fee too, I would suggest 2.5% until the last having.