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Sparrow

Administrator
Staff member
Title: The New PIVX Economic Model

Presented By: PIVX Core Team

Date: Wednesday May 25, 2022


Intro:

This proposal recommends changes to the PIVX Economic Model.

Summary:

The core team looked at the current PIVX Economic Model (rewards/treasury structure) from two different perspectives.

1) Masternode/Staking Rewards which are used to attract & retain investors.
2) The Treasury which is used to fund development, marketing and projects.

Research:

The PIVX Economic Model is 6+ years old and has remained the same during that time.
In this time Crypto industry has changed drastically:
ICOs, Premines, NFTs, Corporate Investment, Token Swaps etc.
Most significantly, it is no longer a place where high level Developers volunteer.
They now earn very significant salaries and are in extreme demand.
In order to compete, PIVX must change.

The crypto space also offers more ways than ever to generate a return on your holdings.

What is the PIVX current economic model:

Each treasury/governance cycle is 43,200 blocks
Currently each block is allocated:
1 PIV for the treasury
2 PIV for staking reward
3 PIV for masternode reward

There are 2 issues:
1) Short term the PIVX treasury only has a value of $8,640 USD (43200 piv x $0.20 USD) per month to pay for marketing/development/hosting/etc.
2) The ROI of PIVX is low compared to other coins and traditional investments.


New Economic Model:

The PIVX Core Team (Approx 30 members) has had extensive discussions on the changes required for PIVX to compete in the current and future crypto market.

After reviewing multiple scenarios, the consensus within the PIVX Core Team is that coin emission should increase significantly, and the rewards structure should change.

Consensus is to change rewards for Masternodes/Stakers/Treasury to:
10 PIV for the treasury
4 PIV for staking reward
6 PIV for masternode reward


Pros:

This increases funding for development where we currently have a great need, and it also includes funds for a marketing budget & non-core development (which I think should at least match development in coming years).

Please note: If the Masternode votes do not pass enough proposals to use the entire allocated treasury, the coins are not created.

Rewards are increased to attract and maintain investors.
Current average of 7.5% rewards (Stakers and MNs) increases to 15%.
Rewards become competitive within the industry.
Increased incentive for Staking. (Demand increases and the network becomes stronger.)
Increased incentive for new MNs to be purchased. (Demand increases and significant lock-in.)
Therefore, increased demand to offset increased supply.
Actual inflation increases from -2.9% (Deflation) to 0.2% (Inflation)
Total Actual inflation increase for holders is 3.2%. (After rewards received.)
Stakers and MNOs are protected from inflation with increased rewards.
Projects are ranked on their total market cap, not the current value of the coin.





Cons:

Coin supply increases more.
Actual coin supply inflation is approx 15%. (Assuming all Treasury funds are used.)


Consensus:

There currently is no method for the PIVX Community to vote to reach consensus while maintaining privacy. However, we can’t let this stop PIVX from growing while the PIVX DAO matures to include such functionality.

As such, we invite anyone to make their own proposal, and demonstrate support for it.


Deadline:

On June 13, 2022, absent a supported alternate proposal, the PIVX Core Team will assume consensus within the PIVX Community for this proposal and will proceed to implement these changes.
 

Sparrow

Administrator
Staff member
On June 13, 2022, absent a supported alternate proposal, the PIVX Core Team will assume consensus within the PIVX Community for this proposal and will proceed to implement these changes.

This proposal has now passed and the changes will be implemented into the code. Thanks to everyone for the great feedback and support.
 

JamesJ

New Pivian
On June 13, 2022, absent a supported alternate proposal, the PIVX Core Team will assume consensus within the PIVX Community for this proposal and will proceed to implement these changes.

This proposal has now passed and the changes will be implemented into the code. Thanks to everyone for the great feedback and support.
Is there an ETA for implementation? Just curious if this is expected to happen soon, or take days/weeks/months etc. Thanks!
 

Sparrow

Administrator
Staff member
Is there an ETA for implementation? Just curious if this is expected to happen soon, or take days/weeks/months etc. Thanks!
We are currently waiting for an ETA from development. Not sure exactly how long it will take. Stay tuned for updates.
 

Berensbach

New Pivian
This is my proposal subject to discussion. I hope it can still be taken into consideration

EN

Introduction:

PIVX has all the ideal technical characteristics to become the perfect currency, except for one, which is the stability of its value. Everyone has noticed that within the 5 cryptocurrencies with the highest market capitalization and transaction volume, two of them are stablecoins (USDT and USDC), whose virtue is precisely to have a stable value. Therefore, I think we should aim to make PIVX one of them.

How can we achieve this? Just as central banks do with their FIAT currencies, with MONETARY POLICY.

To control the value of PIV, we must abandon the idea of a pre-established fixed emission rate or with some arbitrary function (such as Bitcoin) and move on to a variable emission rate that adjusts to demand. We cannot control demand, but we can control supply.

Another feature currently desired for a stable cryptocurrency would be to abandon the dependence or the need that they must be backed by another stable asset such as the dollar, gold or any other commodity. It is worth mentioning that the dollar also has inherent inflation. Therefore, PIV should have to maintain its value based on itself. With this we also eliminate the problems of audits, government permits and external dependencies.

Governance Proposal: PIVX DAO acting as central bank

Since it is known that the result of a monetary policy is manifested in a period of 1.5 years and with the objective of maintaining the stability of the PIV value.

The PIVX DAO shall decide the change in the issuance rate every 1.5 years (every 788,400 Blocks).

Economic proposal

1.- Have a 0% inflation target for PIVX from a date chosen by the PIVX DAO. I propose to the DAO to use world GDP per capita or the WOCU index (XCU) (http://www.wocu.com/) as a reference value.

2.- Always maintain the proportions of the distribution of PIV rewards in the face of any change in the emission rate at the rate of:

Masternodes:Staking:Treasury 3:2:1

ES

Introducción:

PIVX tiene todas las características técnicas ideales para poder convertirse en la moneda perfecta, menos una, que es la estabilidad de su valor. Todos han notado que, dentro de las 5 criptomonedas de mayor capitalización de mercado y volumen de transacciones, dos de ellas, son monedas estables (USDT y USDC), cuya una virtud precisamente es tener un valor estable. Por lo tanto, considero que debemos apuntar a convertir a PIVX en una de ellas.

¿Cómo podemos lograr esto? Al igual que como lo hacen los bancos centrales con sus monedas FIAT, con POLITICA MONETARIA.

Para poder controlar el valor de PIV debemos abandonar la idea de una tasa de emisión fija o con alguna función arbitraria (cómo la de Bitcoin) preestablecida y pasar a una tasa de emisión variable que se ajuste a la demanda. Nosotros no podemos controlar la demanda, pero sí podemos controlar la oferta.

Otra característica deseada actualmente para una criptomoneda estable sería abandonar la dependencia o la necesidad que estas tienen de estar respaldadas por otro activo estable como el dólar, el oro o alguna otra mercancía cualquiera. Cabe mencionar que además el dólar tiene una inflación inherente. Por lo tanto, ésta debería tener que mantener su valor sustentada en sí misma. Con esto además eliminamos los problemas de auditorías, permisos gubernamentales y dependencias externas.

Propuesta de gobernanza: La DAO de PIVX actuando como banco central

Dado de que se sabe que el resultado de una política monetaria se manifiesta en un periodo de 1.5 años y con el objetivo de mantener la estabilidad del valor de PIV.

La DAO de PIVX deberá decidir el cambio en la tasa de emisión cada 1.5 años (every 788,400 Blocks).

Propuesta Económica

1.- Tener un objetivo de inflación 0% para PIVX a partir de una fecha elegida por la DAO de PIVX. Propongo a la DAO usar como referencia de valor el PIB per capita mundial o el índice WOCU (XCU) (http://www.wocu.com/).

2.- Mantener siempre las proporciones del reparto de las recompensas de PIV ante cualquier cambio en la tasa de emisión a la razón de:

Masternodes:Staking:Treasury 3:2:1
 

Sparrow

Administrator
Staff member
@Berensbach Thanks for your detailed proposal. The PIVX team is open to discussing new ideas. I would like this discussion to continue in PIVX discord under #rewards_structure_discussion so the entire community can contribute. Feel free to copy paste.
Thanks!
 
Last edited:

flow11

Pivian
Hello everyone I might be late but I just discovered the planned change in the coin emission model - I have written a counter-proposal to stop the slush fund June with 31000PIVX. Let's use that amount for promo instead. Thanks for reading! Due to the urgency of this task, I wasn't able to make a precise business plan for the promo options yet but I will do that when it's can be seen that the new coin emission model will be rejected, Thanks for reading
 

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