Proposal for Vote on Burning Newly Minted FLASH Tokens

[archive] 💡 Ideas & Discussions
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#1

I would like to propose that we have a vote on keeping either 500K or 1mil FLASH for the XIO index, and burning the remaining tokens (after Zachary has claimed his tokens)

Edit: for those who aren’t already aware, around 9 million tokens were minted on 31st March.

The reason to restrict this is to ensure that a conflict of interest does not tempt people into keeping enough FLASH that we damage the project.

Where is the conflict of interest?
We have a huge amount of FLASH minted. Any extra FLASH dilutes the value of your FLASH holdings, this is generally not good for holders. The more we keep the more we are diluted.
The FLASH we keep will be put into the XIO index. This is directly benefiting XIO to the detriment of FLASH.
A vote will be held and 100% of those voting will be XIO holders.
Less than 100% of voters will also be holding FLASH.
This creates an actual conflict of interest, because the dilution of FLASH adds value to XIO.
I understand that most people who hold XIO also hold FLASH, but that does not mean there is no conflict of interest. It just means you are inclined to vote on something that hurts FLASH less than you would if you were an XIO-only holder.

It’s important to recognise that the best case scenario for FLASH is a neutral outcome (all FLASH burned), whereas the WORST case scenario for XIO is a neutral outcome (all FLASH burned means no benefit to XIO), see how this creates a conflict?

It’s important to heavily restrict the options of how much FLASH should be kept, so that we reduce the potential impact of this conflict.

Even keeping 1mil FLASH will dilute your holdings by almost 10%. Ask yourself, would you be happy to donate 10% of your holdings directly the the XIO index? Because in effect this is what is happening.

Optics are important here. XIO should be a governance token but should not massively benefit to the detriment of the tokens it governs. This will not be attractive to newcomers.

Apologies for the rant, I feel very strongly about this. Would be interesting to hear others views.

7 Likes
#2

I agree. We should not dilute the flash protocal. And this is going to be in favour of xio as well. At the end of the day If flash protocal succeed it’s all good vibes for xio and blockzero projects in the crypto market.

But being flash first project and do terribly its gonna pass negative vibes in the market.

Let’s not dilute flash. And burn as much as can from those minted tokens.

Thanks

3 Likes
#3

I agree on burning the remaining Flash tokens. How do we vote? Just by commenting here? or is there a process to place a vote?

1 Like
#5

Xio holder could vote once voting proposal has been made. For now this thread is to put your thoughts across on the thread.

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#6

One thing we have to keep in mind is that all the future votes will be also made by XIO holders not flash holders. So the more flash we put into the index fund the more we align the interest of both parties.
I would agree to a 1million flash in the index fund and burning the rest. I would even be a a fan of putting much more flash into the index fund. Do we know how much flash total are we talking about?

I hold both flash and Xio btw.

3 Likes
#7

Agree to a certain extent. XIO will always have aligned interests regardless of this situation. Most XIO holders weren’t even aware this event was on the cards, so if the interests weren’t aligned enough without this, we have a much deeper problem.
Having said that, I’m happy with adding some to the pot.

But let’s be clear, a dilution of more than 10% will have a hugely negative impact on flash.
It is asking everyone to give up 10% or more of the value of their holdings.

3 Likes
#8

I do agree, having a large amount of FLASH minted can be an issue. I welcome criticism on this , but why not take that FLASH and put it into a community voted fund? Perhaps we do a community vote on a monthly or bi-monthly basis to stake the FLASH and put the yield towards a marketing/advertising campaign like the Tesla competition. The funds would strictly be used for these type of events, otherwise they’re locked up until the next vote. If we do that, we’re using it to give back to the community and attract new users, just a thought.

2 Likes
#9

It would be nice to be able to do this. But we can’t just print money and not expect to pay the price for that.

We should be making do with what we have. People will ask questions, and they won’t like the answers.

Flash will do very well without a huge influx of tokens. If we print, we pay.

3 Likes
#10

Correct me if I’m wrong, but we have about 500K FLASH that was minted? I don’t see a problem with burning it. And yes, I do agree there is no free lunch, we’re suffering from something similar to this on a very large scale with our fiat, I’ll leave it at that lol.

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#11

There was around 9 million flash minted today.

That’s a big lunch!

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#13

I couldn’t agree more mate!

#14

I’m surprised that this is the first time I’m hearing about this minting. Are you sure this is what they where minted for? This isn’t V1 migrating?

At the same time I feel like the index is really important for getting things going. :confused:

#15

This is not v1 migration.

We can’t simply print funds out of thin air and destroy the flagship project to get things going

1 Like
#16

I totally agree with burning the majority of the minted flash. I do think it is important to keep at least 1M for the XIO index fund. Development came from, and comes from, the xio at this time and the projects will work best when they are synergistic. That 1 million flash also will not be readily available and will likely sit in the index fund for some time. Total supply of flash will likely head towards 20million as more are minted and v1 stakers transition to v2 over time, thus 1m only represents a 5% dilution, which as an XIO and FLASH holder, I believe is reasonable.

1 Like
#18

We might need some additional flash to use for things like partnerships and marketing eg. The Tesla competition.

If we put some in the index and some goes to dash, do we need to set aside some for this too?

Or will the fpy match cover that?

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#19

FPY wallet has 1m flash of its own. Should be enough to stake a tesla

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#20

Id have to agree, a bit outrageous to add 10mil tokens or half the supply!

Who on earth thought this would be a good idea lol.

I say we burn 95% thus keeping only 500k flash tokens left.

4 Likes
#21

Yea I agree! I’ll be voting for 500K that’s for sure.

We already have 1mil flash that we can use and this is more than enough. Let’s not get greedy, it will hurt us more in the long term than it will benefit us in the short term.

#22

As an XIO holder and FLASH holder I would vote to burn the majority of the tokens. 500k

1 Like
#24

So I didn’t realize this from before, But those tokes weren’t arbitrarily minted like your Implying. Their his own rewards that Zack just never claimed, that was the flash his wallet earned from pooling XIO/ETH. In the same way that we all earned flash out the gate for holding/pooling XIO.

What is a little bit disconcerting is the fact that we were originally told that these were never going to be touched, and now all the sudden they were claimed. There should have most definitely been a vote before that, or at least a bit more clarity. But honestly dumping all of them into the index in my opinion is not a bad thing.