[09/08] Proposal #3 voting result and execution plan

Update as of September 8, 2023

Iskra is pleased to share that Proposal #3 has passed the Voting Stage with the following results:

• Upvote: 100% (14M sISK)
• Downvote: 0%
• Abstain: 0%

As Proposal #3 has passed, we will proceed to working on its execution (detailed execution plan to follow).

Execution Plan

• P-NFT Contract will be upgraded reflecting the changes from Proposal 3 on September 26.
• The new scheme for P-NFT staking reward will be applied starting from September 29, 11:00:00 (UTC).
• According to the new scheme, P-NFT staking reward pool by year will be changed as follow:
  • Total remaining staking reward pool: 175,000,000 ISK

Proposal #3 [Passed]

The Restructuring of the P-NFT Staking Reward system consists of the following three proposals. Except for the matters below, the existing structure shall remain.

1. Total Number of P-NFT Minted Changes from 40,000 to 15,000

1.1. DETAILS

• • Total number of P-NFTs minted changes

• • • Current : 40,000 P-NFTs in total

• • • • Private : 4,000 units
      • Public : 26,000 units
      • Reserve : 10,000 units

• • • Change to : 15,000 P-NFTs in total

      • Private : 4,000 units
      • Public : 6,000 units
      • Reserve : 5,000 units

• • Once 10,000th P-NFT is sold, all P-NFTs will reserve the right to be unstaked, allowing for P-NFT transfer, including secondary trading. Find more information about unstaking scheme in the 3rd proposal.

The following schemes will NOT change:

1. 1. The pricing model where $20 increases for every 10 units sold will be maintained.
   2. The conditions for P-NFT unstaking shall remain. The existing “linear reduction model” formula will continue to be used for P-NFT unstaking scheme.
      id <= 29999*(last_id-5001)/24999 + 1
   3. For every 1,000 P-NFT sold, 100 units will be taken as a Team reserve. (1,000 for team reserve)
   4. ‘Instant Unlock’ feature will remain. Even if you have not met the P-NFT unstaking 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 with burning the rest 50%. Please refer to: Governance Voting Proposals – Iskra News

1.2. 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, leaving 11,000 P-NFTs eligible for rewards, the expected staking rewards for individual P-NFTs will triple given that all P-NFTs are sold out.

2. P-NFT Staking Reward Distribution Change: Halving for 10 Years → Upward Distribution for the Next 5 Years

2.1. DETAILS

• • ISK distribution schedule for P-NFT staking changes from 9 years (9 years remaining from 10 years) to 5 years

     

  • ISK distribution for P-NFT staking changes from a halving structure to upward rewarding, increasing over years.

    • As of September 2023, approximately 180 million ISK rewards remain, in which case the reward changing as follows (numbers may vary based on the amount of rewards remaining at the time of actual implementation)

      • Total reward pool for the 1st year : 26,000,000 ISK
      • Total reward pool for the 2nd year : 31,000,000 ISK
      • Total reward pool for the 3rd year : 36,000,000 ISK
      • Total reward pool for the 4th year : 41,000,000 ISK
      • Total reward pool for the 5th year : 46,000,000 ISK

    • Restart [Year 1] based on when the change becomes effective.

    • The team will recalculate and communicate five years of reward amount at the time of the execution.

The following schemes will NOT change:

1. 1. Staking is required for P-NFT rewards and the way rewards are distributed will not be changed.
   2. P-NFT staking rewards will remain at 400 million, 40% of entire ISKs minted.

2.2 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 even 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 joins P-NFT purchase later and allows participants to earn more rewards the longer they stake.

3. Delivering Clear Scheme for P-NFT Unstaking

3.1. DETAILS

• • If you had passed a time when you can unstake your staked P-NFT:
    • you can either continue to stake your P-NFT and enjoy receiving rewards through continued staking; or
    • unstake 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 unstake respectively.
  • Impact of unstaking P-NFT
    • [Check Stage (as-is)] If you still hold P-NFT, even after unstaking, you will continue to receive CP as before.
    • [Proposal Stage (to-be)] Unstaking a P-NFT will mint a new NFT (tentatively called as P-NFT v.2) that can be secondarily traded, and staking it will not result in ISK rewards, but CP rewards will be paid as before.
  • Upon unstaking P-NFT, you will NOT receive P-NFT staking rewards.
  • P-NFT staking is available only once and cannot be restaked after unstaking.
  • Even without meeting the P-NFT unstaking 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% becoming unlocked immediately. Please see Governance Voting Proposals – Iskra News for more details.

3.2. REASON

We would like to clarify the conditions surrounding P-NFT unlock scheme and conditions as this proposal will likely result in faster ISK reward unlocking.

P-NFTs will be eligible for unstaking based on the existing “linear reduction model” formula. As described in proposal #1, all P-NFTs will reserve the right to unstake once the 10,000th P-NFT is sold.

• • id <= 29999*(last_id-5001)/24999 + 1

Once a P-NFT is unstaked, the rewards for that P-NFT will be added to the overall reward pool from then on. With more P-NFTs being unstaked, 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. Such scheme is expected to encourage the sale of P-NFT even in the later stages and increase the expected return on long-term staking.

Why is P-NFT v.2 minted once the P-NFT is unstaked? We have changed the scheme to mint a new version of P-NFT (P-NFT v.2) once an original P-NFT is unstaked as it is a more proper way for development and implementation of the contract.

For more details on the Proposal #3, please check here.