A Modest Proposal

[brianwalden]

At this point, Flare should scrap the ever-changing voting proposals and just announce that it's going to dump 100% of the airdrop at launch.

This works for both the people who are worried about taxes and the people who think a large supply is good. This works for Poloniex IOUs and Bitstamp IOUs (they can distribute 15% according to who holds the IOUs at launch and the remaining 85% according to the snapshot). The only one it really doesn't work for is Flare who wants an extended distribution to encourage participation.

Tons of people will dump, but those of us who think the project has potential will scoop up a million FLR for cheap. This also gives people from the LTC, XLM, and DOGE communities a way to buy a meaningful amount of FLR early on.

I wouldn't have suggested this from the start, but from where we are now it's looking like a pretty good option to me.

[Guest]

1 minute ago, brianwalden said:

At this point, Flare should scrap the ever-changing voting proposals and just announce that it's going to dump 100% of the airdrop at launch.

This works for both the people who are worried about taxes and the people who think a large supply is good. This works for Poloniex IOUs and Bitstamp IOUs (they can distribute 15% according to who holds the IOUs at launch and the remaining 85% according to the snapshot). The only one it really doesn't work for is Flare who wants an extended distribution to encourage participation.

Tons of people will dump, but those of us who think the project has potential will scoop up a million FLR for cheap. This also gives people from the LTC, XLM, and DOGE communities a way to buy a meaningful amount of FLR early on.

I wouldn't have suggested this from the start, but from where we are now it's looking like a pretty good option to me.

This is effectively Option 2 and I think there's many people who are unhappy with that. Also this still requires at least some existing IOU exchanges to fix things on their end so IOU folks still have that uncertainty. 15B total and Poloniex has to change things, 100B total and Bitrue has to change things. It's not just Bitrue and Poloniex. I think there is at least one other East Asia based exchange and another exchange in India that deals with IOUs. Perhaps there are other exchanges dealing with IOUs.

Frankly I don't want the decision to factor in those who traded IOUs. I know it sucks but it is a solvable problem by those same exchanges and there has been ample clarity that IOUs are pure gambling and not the real tokens. I don't want to put them down but I don't see why a network that's not even live should have to make decisions based on personal choices made by Exchanges and users on those exchanges, especially after repeated warnings that IOUs are not real tokens. 

Also, I don't see how we can characterize the 5 month delay as "Flare wants an extended distribution". If they said you have only one week to vote, would that be fair to all FLR holders ?

That brings me to what changed between day before yesterday and yesterday. 

Day before yesterday

Over three years, help out tax liability with burning a small amount of FLR to get the rest of the 85% air drop, but keep the amount of FLR so small that it is negligible for everyone. Most people who are actively chatting about it in Discord/Telegram/Twitter/xrpchat were aware of this state, as Hugo already mentioned this in an interview. This was going to be the default state.

Yesterday

A new possibility of reducing total tokens to 15B and airdropping 100% of that on day 1 + the subsequent airdrops delayed by 6 months.

I think they could have positioned this better and as I mentioned earlier, I would have preferred there to be just a yes/no vote on Option 2, with Option 1 being the default. I suspect (I could be wrong) that they were forced to offer Option 1 as different from the default option due to some potential legal liability. 

 

[NightJanitor]

4 hours ago, Ripley said:

I think they could have positioned this better and as I mentioned earlier, I would have preferred there to be just a yes/no vote on Option 2, with Option 1 being the default. I suspect (I could be wrong) that they were forced to offer Option 1 as different from the default option due to some potential legal liability.

 A lot of complaining on that other thread;  I think you're pretty close to the real answer... I'd have done it at like some tiny, ~0.1% initial, THEN vote/ratify further distribution, but that'd probably be insufficient and/or considered as being de minimis, maybe.

Either way, yes, I detect a tradeoff btwn short-term certainty and long-term certainty being made (and I like that option)...

(And that thinking - which has more to it, utliity-wise, than just tax minimization - though I don't know how many realize that - and, if this is done properly, then we don't even have to talk about the other utility it also may have.)

The rest of it is engineering or arguing over percentages, but, in general, I'm impressed w/this, as a first step.

Edited June 18, 2021 by NightJanitor
Spark(s) of Genius? (Madness or Method?) We'll see!

[Seoulite]

8 hours ago, Ripley said:

5B total and Poloniex has to change things, 100B total and Bitrue has to change things.

The bitrue IOUs are the same no matter what, because they were only ever playing with the first  15%, which is coming no matter what. Polo is a different story, and I’ve reduced my position there substantially.

[ftso_au]

Option 3 has been added as a votable option, retain existing distribution plan. 

https://flare.xyz/flare-token-distribution-governance/

Edited June 18, 2021 by FTSO_AU
as a votable option