[05/20] Iskra Governance: Voting Stage for Proposal #4

[Proposal] 4. Termination of P-NFT Sales, Change in P-NFT Quantity and Repurposing ISK Governance Staking Rewards

The proposals (please refer below) subject of Iskra’s Fourth Governance Voting have passed the “Proposal Stage” with 100% upvote and no changes.

We’ll proceed with the Voting Stage on May 22, 2024. This stage is open to all Iskra DAO members to participate.

Please proceed here if you wish to participate in the Voting Stage once it opens.

Proposal

1. Termination of P-NFT Sales and Change in P-NFT Quantity

• Setting a P-NFT sale cessation date
  • At the end of the sales period, all locked ISK distributed through P-NFT staking will be unlocked.
  • However, P-NFTs cannot be unstaked and sold on the market until the node is operational.
  • The sales end date will be announced within 30 days after the proposal is passed through Governance Voting.
• P-NFT quantity will be capped at 10,000 P-NFTs and the remainder will be burned.
  • Any unsold P-NFTs by the end of the sale cessation date will be burned.
  • The total number of P-NFTs will be capped at 10,000, consisting of P-NFTs sold by the end of the sale and reserve P-NFTs. Any remaining reserve P-NFTs will be burned.

2. Repurposing ISK Governance Staking Rewards

• Transfer the allocation of remaining Governance Staking rewards to ActFi reserve and change the Distribution Plan accordingly.
• Change Distribution Plan
  • Instead of paying out 10 million ISK per year for 20 years, the plan will be changed to pay out 20 million ISK annually for 10 years as follows.

• As is

• To-be
  • Prior to executing ActFi, we will offer the existing amount as a Staking reward.
  • Once ActFi is excuted, we will double the annual reward amount to 20 million ISK as the ActFi reward.

(Above is a draft assuming ActFi goes live in July 2025, and thus subject to change based on start date.)

Introduction

This is a proposal to change the Iskra tokenomics to revolutionize the Web3 gaming ecosystem with ISKRA 2.0. For more information on ISKRA 2.0, please refer to the blog below.

Evolutionary Solutions for Web3 Gaming Mass Adoption - Iskra News

Background

1. Termination of P-NFT Sales and Change in P-NFT Quantity

• Due to a lock-up period of P-NFT staking rewards, holders have faced restrictions on utilizing these rewards, even though sufficient rewards have been distributed.
• To address this, we propose the cessation of P-NFT sales and a corresponding policy adjustment. This change aims to convert P-NFT staking rewards into rewards based on node operations, aligning with our plans outlined in the Whitepaper.
• We are also proposing to reduce the quantity of P-NFTs through burning. Such measure is designed to enhance the value of the existing 15,000 P-NFTs and optimize utilization for higher efficiency.

2. Repurposing ISK Governance Staking Rewards

• We propose introducing ISKRA 2.0 Activity Finance (ActFi), with a new value calculation aimed at incentivizing users based on their activities. Please see above blog for more information on ActFi.
• To accomplish this initiative, we suggest adjusting the payout schedule and quantity of current ISK Governance Staking rewards to allocate funds for ActFi.

Impact

• With the launch of Iskra Chain, a blockchain tailored for games that utilize $ISK as a transaction fee, we are poised to transition from the Pioneer Stage, a phase for staking P-NFT to a Settler Stage, emphasizing S-NFT utilization.
  • When P-NFTs are unstaked from the P-NFT Staking Contract, all Pioneer NFTs get burned and Settler NFTs will be newly minted.
• Existing P-NFT staking rewards will continue to be paid until the node becomes operational following the P-NFT sale conclusion.

Go to vote

• https://snapshot.org/#/iskradao.eth