In order to be registered as an official proposal, It must be registered as “discussion” so I just register by importing the below article. Refer to the Governance Guidelines
On February 25th, ~3.75% of the Radicle token supply available for interested parties within the Radicle community. It used Balancer 1 a decentralized exchange and leverages a mechanism called Liquidity Bootstrapping 8.
Over 1800 new token holders participated in the event, claiming over 50% of the RAD tokens put on Balancer at the beginning of the event. This event raised ~$25M in the Radicle Treasury, a smart contract controlled fully and transparently by Radicle token holders.
The proposal is to distribute all or part the remaining ~49% of tokens to the people who contributed to the LBP in proportion to their contribution or simply an equal share of 1/1800.
Early supporters of Radicle were able to become part of the community by buying the Rad token for $1.5 USD. LBP supporters paid between $10 and $30. LBP contributors support the project just as much as the early backers who were allowed to join in for just $1.5 and should be rewarded for it with a share of the unsold tokens. There are already more than enough tokens available in the treasury to be used for other purposes.
I mean, those who bought but could not afford to buy more because of the high price. 50% of the total pool was sold, strange, you don’t think so, but the project is promising. Those who bought on the LBP are clearly not speculators, these are the true holders.
If one of the early Radicle supporters has $ 100,000 and bought Radicle for $ 15,000 for $ 1.50, his confidence in Radicle is 15%. An LBP member with 1500 bought RAD for 1500 at $ 15, then his trust in Radicle is 100%, so I think it would be correct to divide it between LBP members.
I fully support the author’s suggestion. In the current situation, I see two options for development. 1. Burn the remaining tokens.
2. Distribute it among the auction participants.
It seems to me that to create a good aura and a positive background for the community and all participants of the auction, it will be right to choose the second option.
I bought 2000 $RAD at the LBP event. Although the price is a little bit higher than I expected, it’s still a transparent distribution.
This proposal will not bring any real benefit to Radicle’s future. It will just make some speculators get free chips and sell out ASAP. The current way, unpaused the liquidity pool and letting more adopters on board is a much better approach.
Reasoning & analysis (what is the case for the proposal? what are the pros and cons?)
Technical implementation (who will be writing the code? what is the scope required?)
Impact (how does this contribute to the long-term resilience, sustainability and/or growth of the Radicle network?)
Open questions (what else needs to be figured out?)
From the discussion in this thread and this one it seems that the main open questions are:
How/why a distribution to current LBP holders would benefit the project in the long-term and
How would the distribution be implemented (vesting contracts, long-term vs. short-term, etc.)
I suggest that one of the proposals’ “champions” (@dhejrdlf1 or @kit ?) draft the overview based on the comments in the two threads. Once this is created, let’s post it in a new topic with the label - [Structured Discussion ] - Title of Proposal to consolidate the conversations.
Once we have this, we can have a focused and structured discussion around the proposal and prepare it for a Snapshot and Formal Review!
Let me know if you have any questions. Happy to support
I support @dhejrdlf1 and @kit as well. Also thepleb’s point is relevant and makes sense.
The distribution should be the proportion to their token holdings, not 1/1800. This is just more a “fair” incentive to contributors because it gives a fair purchasing price decrease to everyone, meaning people having 1 RAD and people having 1000 RADs will have same impact on the purchasing price.
Also definitely agree on locking the distribution for 1 year. Those who didn’t exit after the price drop should be okay with that. It encourages new members to involve in the ecosystem and envision for long term success.
i would agree if its all allocated will be locked.
for now earlier participants has near 2% of RADs and they are selling them out. thats all you have to know about everyone’s behavior in participating in projects.