DAO’s Response to “A Phoenix Rises” proposal
Links: Telegram | Discord | Membership NFT
Upon release of the Phoenix Rises proposal by Marshall Hayner, the community has been very lively — passionate in both agreement and dissent. Please read the proposal.
https://drive.google.com/file/d/1huTxPeHRe1mo-YmRXZHA35eCXGDTSbIP/view
The problem: Metallicus doesn’t have the funds for the development they and the community want done. Chain needs more active developers and projects.
The solution: Inflate XPR by double (+14B) to provide 10B to Metallicus for core dev, 2B for existing community development projects like Snipcoins, Fishtank.ai, Soon.market, 1.5B for marketing, 500M for BPs, and accumulating XPR from fees to a war chest instead of burns.
I created The Community DAO for similar motives — I noticed that we needed more developers on Proton. More dapps, tools, data, api digested for the user. More resources for noobs, a repository of documentation to access at any time. (We have started building this repository in the Proton Resources section of our Discord). I started the Community DAO so the community can directly contribute then vote democratically on what they want to support, all while hyping up giveaways and the chain.
I think many people agreed with me — since we’ve organically raised over $900 since November for giveaways and community development. In the grand scheme of things, it’s not a lot of money, but we are young, and this is just the first quarter. Let’s deliver the quarter fully, then focus on even more growth for Q2. Regardless, $900 in a bear market for a project is decent, and it shows that others agree — we need more development on-chain. We need more community, marketing, dev incentives.
I personally think the proposal should include more grants to the community, more to BPs and community projects. We understand this need, and recognize this proposal could solve this problem.
From an investor perspective, it’s frightening to see the supply double. Of course it is not all circulating at once, and over three years. It’s possible even that it’s not all sold, and developers or project leads vest their XPR with their developers if all parties are bullish. As an investor, I’m worried about the negative price trend especially as other coins are pumping. Some have asked: why buy Proton? Solana quadrupled. As a token investor, is this the altcoin to buy for the next bull run?
As a result, I think the proposal should include farming and staking incentives for the token buyer who is looking to speculate. (As of now, there is a METAL-XMD farm at 115% APY and other METAL farms seemed to have received a boost). These people contribute their funds and matter to the ecosystem, even if not contributing to building dapps or community. I’d like to see the XPR/USDC farm double in APY to about 60%+, and the potential to see XPR bonus rewards for METAL farms. Currently, the price impact on BTC and ETC swaps are high. When METAL farms had very high APY, our price impact on BTC and ETH was really low because we had a lot of liquidity and that’s great for users and the chain, especially trying to get new people to use Proton. Buying BTC on Proton with low fees is HUGE.
I also want to mention that I’m seeing a lot of folks who are just upset with the way everything was handled — how quickly the proposal was announced and voted on. Some are disappointed in Marshall for being tough with some community members, like block producer, Aaron, for which Marshall has apologized. There are allegations of manipulation regarding bonuspool votes and protonmoon votes, alleging Metallicus moves BPs into voting power with their massive amount of XPR. I have no opinion on these things — I just want to note the community sentiment I am hearing, so community understands we may be hearing about these specific points for years.
Ultimately, I personally agree with the reasons for this proposal being proposed; they are the goals of the Community DAO in a way. But I wish some revisions were made to provide more support for the community and support for token buyers who may lose to inflation and selling in the near term. I hope investors are not driven away from Proton, and I truly hope if the proposal passes, we see a huge influx of Metallicus development, dapps, liquidity, users, and NFTs to our ecosystem in the years to come. That could be what leads us to be a top blockchain, truly.
Let us know what you think in The Community DAO Telegram.
The approval vote: https://www.protonscan.io/msig/msig/proposal
Note: Any opinion is that of the founder, Blake, not the entire DAO. The Community DAO has no XPR exposure at this time, except for XPR in the daoinvest account granted by Blake at founding. The Community DAO does not store any regular funds in XPR. Memberships sold in XPR are converted to USDC regularly.
