What percentage of Zachary Dash's $FLASH tokens that were to be donated to Blockzero Labs Index should be burned? #XIOfeedback

On March 31st, I claimed 9,970,317 $FLASH tokens that we earned relative to my $XIO holdings - the same process as everyone else.

This claim can be found here: https://etherscan.io/tx/0x85b81f49073e61cd7b8a3a034cfb1c544987bd298e74a6c2818616db8fabd5a1

The gameplan at the time was to retain a percentage of these $FLASH up to the largest amount of $FLASH claimed (752,375) and donate the remaining tokens (9,217,942) to Blockzero Labs to be used to collaterlize the Index.

(note: the exact smart contract and functionality of the Index have not been 100% finalized)

Instead of donating the 9,217,942 to the Blockzero Labs Index, the community made it known they would prefer to have a portion of these tokens burned. I agreed with the community sentiment that the decision should be put up to a vote.

Q: What percentage of the the 9,217,942 FLASH tokens that were to be donated to Blockzero Labs should be burned?

Option 1 | 0% = 0 FLASH
Option 2 | 25% = 2,304,485 FLASH
Option 3 | 50% = 4,608,971 FLASH
Option 4 | 75% = 6,913,456 FLASH
Option 5 | 100% = 9,217,942 FLASH

While there has been a good amount of suggestions on how to structure the poll/voting, I propose results will be calculated as follows.


Weighted Voting

Each Option will be weighted relative to how many total votes they receives. 1 XIO = 1 vote.
Here is an example.


EXAMPLE ONE

Option 1 = 100 Votes
Option 2 = 200 Votes
Option 3 = 300 Votes
Option 4 = 400 Votes
Option 5 = 500 Votes
Total votes = 1500 Votes

Option 1 = 0% * (100/1500) = 0
Option 2 = 25% * (200/1500) = 3.333%
Option 3 = 50% * (300/1500) = 10%
Option 4 = 75% * (400/1500) = 20%
Option 5 = 100% * (500/1500) = 33.3%

Total Sum of all percentages = 66.6%

The total amount of burned FLASH would be 6,145,294 (9,217,942 * 66.6%)


EXAMPLE TWO

Option 1 = 7,777 Votes
Option 2 = 0 Votes
Option 3 = 0 Votes
Option 4 = 3,333 Votes
Option 5 = 10,000 Votes
Total votes = 20,000 Votes

Option 1 = 0% * (7,777/20,000) = 0
Option 2 = 25% * (0/20,000) = 0%
Option 3 = 50% * (0/20,000) = 0%
Option 4 = 75% * (3,333/20,000) = 12.50%
Option 5 = 100% * (10,000/20.000) = 50%

Total Sum of all percentages = 62.50%

The total amount of burned FLASH would be 5,761,213.75 (9,217,942 * 62.5%)


While we would have preferred to make the voting results easier and more simple to calculate, we could not think of a more fair way to do this that provides everyone’s voice to be heard. If there is a better way, feel free to comment below.


#XIOfeedback

What option are you voting for and why?

How long should the snapshot vote be open for?

Should the wording of the proposal be changed?

Debates will be open for one week. Snapshot will be created Friday.

8 Likes

Personally, I would like to see a large majority of these tokens added to the index fund. I haven’t decided on what percentage but my initial thoughts were somewhere between 0-50% should be burned - I look forward to hearing the arguments for and against and will see if anyone can sway me in either direction :slight_smile:

I think somewhere between 1-2 weeks is fair. We could even keep this open until we know when the deployment of the index fund will happen if it’s not too far off :wink:

I really like the concept of the index fund where someone can burn 1% of XIO to redeem 1% of all the assets in the basket. I think that having a large number of FLASH in there will incentivise XIO holders to have the best interests of FLASH (or any other project in there) in mind whenever making decisions.

As it stands at the moment, I don’t think the two projects are financially aligned strongly. XIO holders (as the governance token) could easily decide to move towards another project and leave FLASH behind in terms of resources. Once the underlying value of XIO (as redeemable via index) is based on the performance of FLASH and other projects Blockzero creates, the financial interests between XIO and the projects become more financially aligned and I see this as only positive for both/all projects.

Personally, I would not want to see these additional tokens used for any other purpose apart from the index fund. I know the index fund concept is still very abstract at the moment so it’s too early to word like that but in the event we do not go ahead with this (for example), I’d like to see the tokens burned - so I guess it really depends on what these tokens will be used for. If we are voting to put into the index fund then I’d vote 0-25% burned but if it’s something else, I’d vote differently. So yeah, if possible, this could be worded better.

2 Likes
  1. I will be voting for 0% to be burned. I feel these Flash funds can be better utilised to grow the protocol and to add value to the Blockzero index rather than being burned. Having a large proportion of Flash available in the Flash reserves means we will not be restricted in running promotional campaigns to grow our protocol.
  2. The voting should be open for 1 week to allow everyone enough time to debate and come to a decision to vote.
  3. I am happy with the wording of the question.
1 Like
  1. I will be voting for 0% to be burned.
  • The only con I’ve heard so far from discussing this many times in telegram chats (of why people want them burned) is because of the optics of the total marketcap, that somehow being a lower marketcap is better for the project, which in my opinion is complete nonsense. If people only buy tokens because of the marketcap being below a certain number, it’s going to fill back up to that magic threshold anyway, like a toilet tank always refilling to a certain line. Then you’re right back at this situation of where the marketcap is at currently, with or without tokens burned. I’d rather we don’t burn any and utilize the tokens to either improve the index fund backing or use them for foundation capital to spend on growth and improvements of the FLASH protocol.

  • Also note that the higher % of the FLASH supply that is idle (not staked), the higher % the FPY is when you stake your Flash. The more FLASH we have in the index fund, the higher the FPY will be. This benefits EVERYONE who stakes.

  1. Snapshot vote should be open for at least 1 week, but as important as this is, and to make sure everyone has plenty of time to discuss and vote, 10 or 14 days might be better.

  2. Like @umarsa said, Blockzero and Flash are not aligned very strongly right now. The more FLASH there is in the index fund to back the $XIO token or is in the Foundation wallet for capital to spend on growth, the better.

1 Like

I agree with many of the above statements from @umarsa & @Steve.

#1 I will be voting for 0% burned.

Like I’ve mentioned in telegram and on the forums, I believe doing anything based off price or market cap is a flawed line of logic that will only do the community more harm then good.

#2 The snapshot should either start, or remain open until most people can retrieve their XIO holdings that may be locked up for the FLASH liquidity mining campaign. If the vote were to open tomorrow, then we should keep it open for 2 weeks, as this would give ample time for everyone to vote if their funds are currently locked.

#3 I’m personally a fan of adding all the funds to the index after Dash claims his tokens (752,375). The more funds we have in the index, the more opportunity we’ll have to foster more growth for the community and any additional projects down the road.

1 Like

I suggest that 10% of the Flash that go to the index fund should go to a separate warchest for business development and operations instead.

I´ll vote for 0%.
The way the poll works currently makes it rather binary. If you vote for anything else than 0% or 100% you´re effectively wasting some of your influencial power because the endresult will be somewhere in the middle anyways. So it comes down to which side you want to support more than the other.
Considering this, the poll should be changed to either a normal poll where the option with majority vote wins or a binary “hold” vs. “burn” vote with a weighted average result like proposed in OP.

2 Likes

I think 50% should be burned with the voting option example as stated, that way everyone with XIO will feel fairly treated. The remaining 50% of Flash tokens should be donated to the Index Fund.

A three week period of voting should be sufficient. That way people that do not read Telegram daily won’t be discounted. Three weeks is ample time as I’m sure there will be BlockZero updates to email that people will read.

I will go with option 3, and instead of burning them utilise them in index funds.

1-2 weeks is good enough for everyone to discuss and vote. Most of the time I change my mind while reading discussions, there’re are some amazing people here discussing stuff from very different perspective.

Wording is fine, but if in any case we don’t go through with this, it would be better to know what tokens will be used for.

I agree with the index fund, it makes more sense to increase the weight.

I agree with Umarsa’s comment:

And think 50% burn and 50% in the index fund would be healthy.

50% burn. 50% in the index fund. I agree with the overall sentiment that the XIO Index fund should have a large portion of BZ project tokens. This initial large deposit of FLASH will incentivize XIO holders to vote for resource allocation and development that is in the best interest of FLASH in the future.
50% burn is the largest I would vote for, - I think optics and marketing has been lacking severely for what is an amazing project. Having a lower token supply would give a the project a boost if advertised correctly that would drive interest at a time that it needs attention.

1 week. This would be enough time in my opinion.

The only addition that might add value would be to explain briefly what the benefit is to adding the tokens to the XIO Index.

Thanks!

I was going to vote 50% burn and 50% in the index fund, but after reading @umarsa and Steve’s comments I am leaning towards 0%.
However I do have a suggestion. Could we take 10-20% of the flash and designate it separately so that we can use it for marketing and further development? There are a lot of good suggestion on the forum about marketing. We need money for that.

How long should the snapshot vote be open for?
One week is fine by me.

Should the wording of the proposal be changed?
I am fine with the wording. I like the voting system. I feel like the final option will be the closest to the number most people want.

Also just fun math: If all flash is put into index fund (so 0% burn) then the minimum floor price for 1 XIO will be 0,36 flash. That is pretty cool. Once we add to that the UMA and AQUA Xio will have really solid ground :slight_smile:

Why? Circulating supply for XIO is 25179000 XIO and we would have 9,217,942 in the index fund. 9217942/25179000=0,36.

I like that a lot. This will be huge for XIO. So my vote would be 0% burn but also please let us put some money into flash fund.

4 Likes

I think the tokens will be of greater service added to the index fund than burned, so i would go for the lower tier 0 ~25%
1 week should be enough for everyone to have a say, i guess the ones who don’t vote on week 1, will hardly vote on week 2
Proposal looks fine

I’d vote for 0% burn, and put it all into the Blockzero Index. Based on two reasons:

  1. As explained by @Mindora:
  1. Burning is a one-off event, with no return. Putting them into the Index allows for more flexibility down the line in a DAO model. It also entertains some really interesting arbitrage that I’d like to see play out. I’m keen to see the Index and XIO spring forward, and I think by adding the tokens to the Index will maximize their position.

1 week, but can we be better at announcing these snapshots? I feel like I kinda miss some, or don’t know that they’ve been released. How about timing the snapshot posting for the same day as the next Behind The Block email, and then notify on every other channel (Telegram, Facebook, YouTube, etc).

Nah, I like it. Weighted-Averages are my favorite type of averages!

We still have the FPY match that we could use for this - something to keep in mind.

Agreed!

Interesting proposal. First of all, I have to thank Zach (and the BZ team) for being so open and straightforward.

  • I am yet not decided but I will cast a vote that will try to find the correct balance between preventing excesive inflation of tokens and that allows to have flash funds that can be used to help grow the protocol and give strength to the BZ index. I am more in favour of the latter, so I would vote something between 0 and 50% for sure.

  • One week should be more than enough to let everyone vote. We all have busy lives but I think it is quite easy to have a look at least once a week into what is going on into your own investment…

  • I am happy with the current wording of the proposal.

Good point. I forgot about that.

I think we should add 20% to vortex and 10% to foundation wallet (same that receive the match LP fee) This will give XIO more value what’s helps for growing the team and future developments and we have more room to create campaign/incentives with flash for more specific/tactic action. The extra 6,452,559 should be burned. (70%)

What option are you voting for and why?

I will be voting for option 1, i believe flash needs some more development and some of these token can be used for the growth of the project whether it be marketing, future development or an insuracne for flash.

How long should the snapshot vote be open for?

I believe 1 week is long enough for everyone to catch on and give their feedback. This is heavily brought up topic in telegram group so persons are looking out for this proposal.

Should the wording of the proposal be changed?

The wording is ok only if a person dont understand what it means to burn they might get confuse.

Please be aware that the vote is for how much tokens are to be burned. I note you said Flash needs more development and these tokens can be used for development hence you will vote for option 3. But with Option 3 you are burning 50% of the tokens. If you want Flash funds for future development then the only option to vote for is option 1 where you burn 0 Flash.

2 Likes

i seem to forget its a weighted average vote my bad thanks.