Governance Update : Proposal #16 -
@dymension
Context
▶︎ Price of
$DYM has been declining since its launch, something similar to most of new launched tokens.
▶︎ Community is upset, with many members having staked in hopes of a potential airdrop and now experiencing losses.
▶︎ Someone post a proposal onchain to stop staking rewards for vested token
Our Position
Enigma participated in the incentivized testnet as a validator and holds some locked DYM, but we are not a private investor for Dymension.
We are a "community-backed" validator and value free speech. We don’t rely on VC funding and have 27,000 delegators on our Dymension node, ranking third by number (if you exclude validators that promise airdrops.)
Given this, we care deeply about our community and will express what we believe is best for the long-term success of Dymension.
On Proposal 16
We need to discuss our thoughts on this proposal in two parts: form and content.
1/ On the Form
There is a need for better standards. Last cycle, governance was chaotic and this needs to change. People are watching us, and we can’t handle governance this way.
This proposal landed on-chain without a a single forum post or discussion. People only started thinking about it once it was already on-chain.
For this reason alone, I believe this proposal should not pass.
Proposals need to be well-argued. People need to consider them, work on them, and provide numbers. Every party should have the opportunities to present and argue for their vision.
2/ On the Content
The fact that VCs can stake and sell from block 1 is a real concern for us. Inflation hurts token prices, and we all know that the situation exist since years and remain.
The issues that locked token from of investors, developers, and founders can be staked and get liquid rewards is significant.
This is a real concern that talked many times for all Tendermint chains - inflation is causing selling pressure - and hurt retail investor that buy on open market
Is this public? Yes. Can we do better? Yes.
Are there other solutions?
The bigger picture involves launch of low float / high FDV tokens, which result in a terrible price action from launch and tend to decrease in value.
This is a widespread issue across the industry, not just in the Cosmos ecosystem. Even basic token suffer from this, even if they don't have any inflation.
A better standard needs to be found to minimize harm to communities and align the interests of VCs, builders, and communities.
Overall, no solution has been found yet, but we are in favor of the idea of adding specific vesting for staking rewards. We should precisely calculate the portion of inflation going to vested staked tokens, which ultimately concentrates the stake among insiders, with minimal risk. after launch since staking is the only option.
On the
$DYM Case
You don’t want to change the rules once the game has started.
Investor, builders, users come with certain investment conditions, and changing the rules afterward will damage Dym’s public image.
Builders won’t come if community governance can cancel them at any time. You play by the rules from the start.
To be clear - Rules can be changed, but there needs to be a force majeure event. In this case, nothing has changed. DYM only launched with perhaps too high FDV, similar to many tokens launched this year.
For the Future and the industries
We believe it’s important to think about better alignment between VCs, chains, and the community. We are open to discussing and advising any project that wants to launch with a new vesting model and will support it, but we can't support Prop16
Link :
Explorer :
mintscan.io/dymension/propos…
Forum :
forum.dymension.xyz/t/prop-1…