Community Token
Last updated
Last updated
This is an early draft which will likely change
Currently, we are using an ERC721 token (NFT) to distribute ownership of the community and to vote on governance proposals. This is a temporary solution until we have an ERC20 governance token that will replace the original ERC721 token.
The community will use an ERC20 token to distribute ownership of the community. ERC20 tokens are better suited than NFTs because they can be split into smaller parts and traded on decentralized exchanges (DEX). They are fungible and can act both as a currency and as shares in the community.
The supply of the community tokens will be fixed to 1,000,000.
When the token is created, the whole supply will be distributed to the following parties. The exact percentages will be decided by the community.
70% to the community treasury
20% to the community members (NFT token owners)
10% to the core team
Everybody that adds value to the community shall be rewarded for that. This will be achieved by distributing tokens from the community treasury to members for valuable contributions to the community. There can be different ways to earn tokens that need to be defined by the community, but here are some examples:
In order to have tokens coming back to the community treasury, some of the proceeds from the projects will be converted from fiat or other crypto tokens to the community token and send to the treasury.
Making changes to the community website
Moderating the Discord server
Contributing machine learning and web3 learning materials
Bounties and challenges for work needed to be done for the community
Grants to fund proposals from the community members
Since no new tokens will be minted, there must be a mechanism to get tokens back into the community treasury. The community will have an income stream from the proceeds of all projects that it launches (by holding the project tokens). Part of this income stream will be converted to the community tokens and put back into the treasury.
Converting fiat or other cryptocurrencies to community tokens means that the community will buy these tokens on the market on a regular basis. Therefore, community members will be able to regularly sell their tokens as well to generate an income stream.
In order to make a token tradable on a decentralized exchange (DEX) like UniSwap or SushiSwap, somebody needs to provide liquidity by locking their tokens into a liquidity mining contract. The providers of the liquidity need to be rewarded for doing this - a predefined amount of tokens will be distributed to those providers over a predefined period of time.
Making the token tradeable is important in order to allow community members to sell some part of their tokens in order to receive fiat that they might need as an income source.
