Quick disclaimer before we dive in that may not have been clear in the video: The XIO protocol guarantees that Stakers retain 100% of their original stake token balance. There is no fee of any kind to stake on XIO. You will always be able to withdraw the full amount of what you choose to stake. The XIO “Toll” mentioned in this video is only referring to the split of generated rewards between Citizens and the Treasury.
Hey everyone, welcome to the first ever post on the official XSI Forum! This is still new to us to we ask for your patience as we figure out how to use this open source software (Discourse) and as we create more discussion channels/topics to choose from. Huge shout out to @jorn for taking the lead on this project and recognized the need for more organized conversations. A few items we want to try here is allowing a full week to response (instead of 72 hours) and try to only have one large discussion per week.
Today we have a very important topic and question that is sure to impact the long term sustainability of the XIO Network and token. As always, we would love your feedback and input on the subject. If you would like to earn XIO Social credits on this topic, you can comment directly here for 3x the Credits, or on XIO’s Youtube/Twitter. Let’s dive in!
Realizing in the early days that XIO needed a scalable and sustainable token model, the XIO Treasury was created.
In short, the XIO Treasury is a decentralized index fund of assets that are only redeemable by the burning of XIO Tokens. Similar to YCombinator having equity in multiple different startups, the XIO Treasury holds ownership of decentralized assets to up-and-coming blockchain startups.
However, one unique characteristic of the Treasury: The only way to redeem tokens from the XIO Treasury is to burn XIO Tokens.
This model ensures that the XIO Token has a diversified and foundational basket of underlying collateral. Additionally, if the assets within the XIO Treasury appreciate more than the XIO Token itself, the XIO token is likely to offset newly minted tokens and become deflationary in nature.
The only way the XIO Treasury is able to acquire assets is through the XIO Toll. The XIO Toll is reward taken by the XIO Treasury when new altcoins are acquired. For example, if the XIO Toll percentage was at 50%:
- User stakes 100 XIO for 365 Days to earn LINK
- 10 New XIO Tokens are generated and swapped for 5 LINK
- 2.5 LINK would go to the Citizen
- 2.5 LINK would go the XIO Treasury
There are many pros and many cons to a low or high XIO Toll. Some of the ones we have identified so far (need your help dissecting and challenging these assumptions) are:
Pros of Low XIO Toll
- Higher potential interest per Citizen
- Staking decisions only affect the staker
Cons of Low XIO Toll
- XIO Treasury is not funded
- Every Citizen for themselves attitude
Less Sustainable Token Model
Pros of High XIO Toll
- Sustainable and Increasing XIO Treasury revenue
- Collective staking mindset
Cons of High XIO Toll
- No immediate gratification rewards
- Group decisions impact the individual
- Less individual stake interest per Citizen
This brings us to our #3XIOsocial question:
What percentage Toll should the XIO Treasury take at launch?
2:30: What is the XIO Treasury?
3:55: What is the formula to calculate XIO Treasury rewards?
4:44: What is the goal of the XIO Treasury?
5:50: What is the XIO Toll?
6:42: What are XIO Public Portals?
9:18: What percentage should the XIO Treasury take as a Toll?
9:45: Pros and Cons of 0% XIO Toll
11:54: Pros and Cons of a 100% XIO Toll
14:45 Launching the official forum for XIO Social!