Hello,
This is Team ISKRA.
We have recently conducted successful governance voting for two proposals last May. Today, we have another matter that will be the subject of our third governance voting.
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About Iskra’s Third Governance Voting
To recap, Iskra’s governance involves the following stages:
- Stage 1 – Propose (Check + Proposal)
- Stage 2 – Vote
- Stage 3 – Execute
During the first stage (Propose), we decide on the agenda for platform operation, and this stage is further divided into “Check Stage” and “Proposal Stage”.
The Check Stage serves as a step to collect various opinions before formally creating an agenda to be proposed for the Proposal Stage.
Please note that the matters released during the Check Stage is only a draft and not yet an official proposal agenda. Therefore, Iskra KOLs reserve the right to modify the draft at any time.
How to Edit an Agenda
You can leave a comment through the voting feature in Snapshot. If you have a lot to share, you can also leave a link to your blog where you left your opinion. Let us know what you think through voting!
Draft Agenda Subject of the Third Governance Voting
This is a proposal to entirely restructure the token economy for P-NFT staking.
Background
- The current model of P-NFT staking rewards was designed during a crypto bull market to concentrate rewards in the early stage to sell out quickly. However, just after the private sales, we’ve witnessed the market quickly turning bearish, resulting in a sluggish crypto market.
- The current structure of P-NFT staking reward is such that the value of P-NFT decreases over time as P-NFT staking rewards are halved every year for 10 consecutive years.
- This structure inevitably causes the value of P-NFTs to decrease over time with its price driving up, making the sales of P-NFTs even more difficult.
- We plan to change the overall P-NFT composition and reward structure in a way that we can sell out all P-NFTs even in the current market conditions although the bear market were to continue as P-NFTs must be sold out to unlock those of the early stage buyers.
The restructuring of the P-NFT staking reward system consists of the following three (3) proposals. Except for the matters below, other existing structures shall remain.
Proposal #1: Total Number of P-NFT to be Minted to Change From 40,000 to 15,000
Details
Once the 10,000th P-NFT is sold, all P-NFTs will reserve the right to be un-staked, allowing for P-NFT transfer and secondary trading. Find more information about the un-staking scheme in the third proposal.
The following schemes will NOT change:
- The pricing model where $20 increases for every 10 units sold will be maintained.
- The conditions for P-NFT un-staking shall remain. The existing “linear reduction model” formula will continue to be used for P-NFT un-staking scheme.
[ id <= 29999*(last_id-5001)/24999 + 1 ] - For every 1,000 P-NFT sold, 100 units will be taken as a team reserve. (1,000 for team reserve)
- ‘Instant Unlock’ feature will remain. Even if you have not met the P-NFT un-staking conditions, you can still activate the ‘Instant Unlock’ feature after 18 months of P-NFT staking. If you choose to instantly unlock your P-NFT, 50% of the ISK rewards for the selected P-NFT will unlock immediately while burning the remaining 50%. Please refer to Governance Voting Proposals – Iskra News for more details.
Reason
We have drastically reduced the overall quantity for sales to set the final price and quantity that we expect to sell out.
With the overall P-NFT minted being reduced, the expected rewards from staking each P-NFT will increase.
As 2/3 of the 33,000 P-NFTs eligible for ISK rewards will be burned with the change, it will leave 11,000 P-NFTs eligible for rewards and the expected staking rewards for individual P-NFTs will triple given that all P-NFTs are sold out.
Proposal #2: P-NFT Staking Reward Distribution to Change From Halving for 10 years to Upward Distribution for the Next 5 Years
Details
The ISK distribution schedule for P-NFT staking changes from 9 years (9 years remaining from 10 years) to 5 years, and from a halving structure to upward rewarding that increases over the years.
As of September 2023, approximately 180 million ISK rewards remain, in which case the reward will change as follows (numbers may vary based on the amount of rewards remaining at the time of actual implementation).
Restart [Year 1] based on when the change becomes effective. The team will re-calculate and communicate five years of reward amount at the time of the execution.
The following schemes will NOT change:
- Staking is required for P-NFT rewards and the way rewards are distributed will not be changed.
- P-NFT staking rewards will remain at 400 million, 40% of entire ISKs minted.
Reason
- As the halving structure of P-NFT staking rewards makes it harder to sell P-NFTs over time, we are to change the staking reward scheme for selling P-NFTs with a reduced quantity.
- Our new proposal is structured to offer more rewards to those who stake P-NFTs longer. The longer you stake, the more rewards you will receive. This ensures incentives for those who join P-NFT purchase later and allows participants to earn more rewards the longer they stake.
Proposal #3: Delivering Clear Scheme for P-NFT Un-staking
Details
If you had passed a time when you can un-stake your staked P-NFT, you can either:
- Continue to stake your P-NFT and enjoy receiving rewards through continued staking; or
- Un-stake your P-NFT at any time, and the locked ISK held by the P-NFT shall become immediately unlocked and available for use.
- If you have multiple P-NFTs, you can un-stake respectively
- Even if you un-stake your P-NFT, if you still possess the P-NFT without transferring, you will still receive the same amount of CP.
- Upon un-staking P-NFT, you will NOT receive P-NFT staking rewards.
- P-NFT staking is available only once and cannot be re-staked after un-staking.
- Even without meeting the P-NFT un-staking conditions, you can activate the ‘Instant Unlock’ feature 18 months after P-NFT staking. In this case, 50% of the ISK rewards for the selected P-NFT will be burned with the remaining 50% will be unlocked immediately. Please see Governance Voting Proposals – Iskra News for more details.
Reason
We would like to clarify the conditions surrounding the P-NFT unlock scheme and conditions as this proposal will likely result in faster ISK reward unlocking.
P-NFTs will be eligible for un-staking based on the existing “linear reduction model” formula. As described in Proposal #1, all P-NFTs will reserve the right to un-stake once the 10,000th P-NFT is sold.
[ id <= 29999*(last_id-5001)/24999 + 1 ]
Once a P-NFT is un-staked, the rewards for that P-NFT will be added to the overall reward pool from then on. With more P-NFTs being un-staked, the rewards available for users who still have their P-NFTs staked or those of unsold P-NFTs will certainly increase as the reward pool will remain the same. This scheme is expected to encourage the sale of P-NFT even in the later stages and increase the expected return on long-term staking.
Reference: Pioneer NFTs: Serial Numbers and Provenance – Iskra News
Impact
Policies that have been previously gone through Governance Voting will remain unchanged.
- [Voting] 1. Conditional Instant Unlock Function in the P-NFT Lockup Mechanism
Snapshot - [Voting] 2. Using Locked ISK for Purchasing P-NFT Snapshot
Thank you.
Team ISKRA