This draft has been approved by all members of the SPS Foundation board unanimously.
Purpose
The purpose of this proposal is to prepare the SPS token for migration to the SPS Validator Network. After meeting with the devs and discussing the best ways to handle the migration, we've come up with what we feel is a solid gameplan that should set the DAO up for a successful migration and also enable the Treasurers to make adjustments as needed if subsequent proposals require them to do so.
The big change that this proposal will make is removing token minting, which has caused multiple issues for SPS such as supply discrepancies and some allocations being minted too quickly. It also makes the token extremely difficult to audit, which is why it took myself and multiple team members several months to do a thorough token audit earlier this year.
One thing that has been learned with newer projects is that it's better to have all of the tokens minted into their own "buckets" and then disperse them on a schedule according to the whitepaper. This removes the need to actively mint tokens and prevents potential discrepancies with token distribution schedules. This does not impact the circulating supply.
There is an additional consideration when looking to make this transition away from token minting. To do this, we need to also mint the "unallocated" token supply as well as the DAO's tokens that haven't been minted since April of 2023, which has put us over 100m tokens behind schedule. The token minting stopped when SPS began to transition to a HIVE first token instead of a BSC token.
While this proposal is meant primarily for housekeeping and to prepare for migration to the Validator Network, it's still important for the DAO to approve these decisions. Please note, if this proposal passes, it will not impact the circulating supply, it will give the DAO and treasurer's direct control over token distributions and it will make all token "buckets" easily auditable so that we always know how many more tokens are allocated for each type of distribution.
Proposal
If this proposal passes, the remaining SPS tokens that have not been minted will be minted into system accounts on the Validator network that will hold the remaining tokens in escrow that have not yet been distributed. These tokens will continue to be released on their current schedule. Any change to these schedules will require a separate DAO proposal.
The unallocated tokens as well as the remaining tokens that have been allocated for the SPS DAO will be minted into the DAO multisig account managed by the SPS Treasurers, @sps.dao. This minting will take place at the time of the token transition to the SPS Validator Network.
I like this very much and fully support it. Improving the method for distribution of the tokens by giving them their own buckets is super helpful. This should be very welcomed by all. Good work Clay.
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I don't see any reason to vote against this and since there are upsides, it's a yes from me.
Makes sense to me
Boiled down, are you saying we are gonna mint the remaining sps of the 3 billion and then kill the mint function?
basically
But wont this minting in advance increase risks of exploits? just my thinking is if they are not minted in advance they wont be exploitable rather the buckets will be there but minted gradually into their respective buckets according to the white paper.
It doesn't really change anything beyond the DAO tokens and unallocated being minted into the DAO's treasury multisig, which we've actually not been doing for like 1.5 years so the DAO is massively behind in SPS tokens. This plan actually puts the token distribution firmly in the hands of the DAO/Treasurers instead of having the company mint the tokens on our behalf.
ok i see thanks for the clarifications.
lovely, good to keep things in order and helps with transparency. Seems more of a formality but understand why it has to be voted on.
Huge YES for me. Glad to see things moving along nicely on our way to Validators going live soon. Thanks Clayboyn.
Seems like common sense to mint the balance of the tokens now and send them into the buckets where they need to go. Then we can simply iterate on the white paper SPS payment structures to ensure Ranked, Tournament, Land, and Validator SPS rewards are tweaked to the right levels and values to provide incentives to earn SPS well after the initial whitepaper period ends.
Sounds reasonable :-)
You can place or monitor SPS Stake Weighted votes for and against this proposal at the link below:
Link to this Pre-ProposalThank you for participating in SPS DAO Governance @clayboyn!
Updated At: 2024-12-28 21:31 UTC
seems like this game is being setup for exploit with this kind of proposal.
can you explain a bit more your reasoning please? I think this does the opposite