Sparrow
New Pivian
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.
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.
