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PGP43: PHY>ASTRALIS Burn-and-Mint Program Allocation

  • Author(s): @arkitoure
  • Start Date: 2024-08-01
  • Category: Economic
  • Governance Role: Council
  • Original PGP Pull Request:
  • Tracking Issue:
  • Vote Requirements: Council/Community

Summary

This proposal seeks to merge the existing EcoSystem: Development and DAO: Rewards PHY allocations into a single Burn-and-Mint (B&M) Program allocation, totaling 600,000,000 PHY, which represents 20% of the total PHY supply. The purpose of this merger is to ensure the long-term sustainability of the B&M Program by providing sufficient resources while streamlining treasury management and avoiding redundancy within the existing treasury structure.

Impact

  • Why Now: The need to ensure the B&M Program has adequate resources is crucial as the network continues to grow. By merging these allocations, we can support the B&M Program without compromising other critical areas, thereby maintaining the balance and health of the ecosystem.

  • Opportunities: This proposal opens the door to a more efficient and focused allocation strategy, enabling the B&M Program to operate effectively and support the value of ASTRALIS through controlled scarcity.

  • Challenges: The primary challenge addressed by this proposal is the potential redundancy in existing treasury allocations. By merging these two accounts, we eliminate overlap and ensure that PHY resources are optimally distributed.

  • Future Vision: Success in this proposal will lead to a robust and sustainable B&M Program that supports long-term network growth, incentivizes participation, and maintains the value of both PHY and ASTRALIS.

Stakeholders

  • Affected Parties: This proposal directly impacts the DAO Council, node operators, and community members who hold or are involved with PHY and ASTRALIS. The broader community, including developers and ecosystem participants, will also be indirectly affected by the changes in resource allocation.

  • Engagement for Feedback: To gather input, we will reach out through the DAO’s communication channels, including social media, community forums, and a dedicated Q&A session. This ensures that all stakeholders have the opportunity to voice their opinions and provide feedback on the proposed changes.

Explanation

  • Concept Introduction: The B&M Program relies on burning PHY to mint ASTRALIS, maintaining a controlled supply and supporting the token’s value. The current treasury allocation structure includes overlapping accounts that could be streamlined to support this program more effectively.

  • Implementation Overview: This proposal involves merging the EcoSystem: Development and DAO: Rewards PHY allocations into a single B&M Program allocation. The combined allocation will be 600,000,000 PHY, representing 20% of the total PHY supply.

  • Practical Examples: Post-merger, the B&M Program will have a dedicated allocation of 600 million PHY. This allocation will support the minting of ASTRALIS and ensure the program can sustain itself over the long term, driving value and participation within the network.

  • Addressing Corner Cases: By keeping the Team: Community and Team: Core accounts intact, we ensure that development and community initiatives continue to be supported, avoiding any disruptions or shortfalls in those areas.

Pitfalls

  • Reasons for Hesitation: Some may hesitate to consolidate these funds due to concerns about future development needs. However, the existence of separate Team treasury accounts for community and core development mitigates this risk.

  • Potential Problems: A potential issue could arise if the B&M Program consumes PHY more quickly than anticipated, potentially leading to a shortage of resources for other initiatives. This can be monitored and addressed through regular reviews and adjustments.

Rationale

  • Optimal Design Justification: Merging these accounts allows us to efficiently allocate resources while avoiding redundancy. The proposed allocation of 600,000,000 PHY is sufficient to support the B&M Program and aligns with the DAO’s strategic goals.

  • Considered Alternatives: We considered leaving the allocations separate but determined that this would maintain unnecessary redundancy and complicate treasury management. Consolidating these funds into the B&M Program is the most efficient and effective approach.

  • Consequences of Inaction: Without this merger, the B&M Program may face resource constraints that limit its effectiveness, potentially undermining the network’s growth and the value of ASTRALIS. Inaction could also lead to continued inefficiency in treasury management.

Queries

  • Pre-Merge Resolutions: Before final approval, we will clarify the exact process for merging the accounts and ensure that all stakeholders understand the changes and their implications.

  • Post-Approval Developments: After the merge, we will monitor the B&M Program’s performance and make adjustments as necessary, particularly if network conditions or resource needs change.

  • Future Considerations: As the network grows, we may need to revisit the allocation strategy, particularly if new opportunities or challenges arise that require a different distribution of resources.

  • Dependencies and Timelines: The success of this proposal depends on timely approval and execution by the DAO Council. We anticipate implementing the merge within one month of approval to ensure a smooth transition.

Deployment

  • User Impact: This proposal primarily affects treasury management and does not directly impact end users. However, the successful implementation of the B&M Program will contribute to the overall health and growth of the network, indirectly benefiting all participants.

  • Documentation Updates: The treasury documentation will need to be updated to reflect the new allocation structure. We will also communicate the changes to the community through our usual channels.

  • Compatibility Considerations: The merge does not affect system compatibility or require changes to existing operations beyond the treasury structure.

  • Reversibility: If necessary, the merge can be reversed, although this would involve re-establishing the original treasury accounts and reallocating funds. However, this is not anticipated to be necessary.

  • Migration Strategy: The merge will be handled internally by the DAO Council, with a clear plan for transitioning the funds. There should be no disruption to ongoing operations or initiatives.

Metrics

  • Performance Indicators: The primary indicator of success will be the sustained operation and effectiveness of the B&M Program, measured by the value and scarcity of ASTRALIS.

  • Stability Metrics: We will monitor the availability of PHY in the B&M allocation to ensure long-term sustainability. A stable or increasing value of ASTRALIS will also be a key indicator.

  • Complexity Reduction: The merge should simplify treasury management, making it easier to track and allocate resources. We will assess this through internal reviews and feedback from the DAO Council.

  • User Acceptance: Community feedback will be collected post-implementation to gauge acceptance of the changes. Positive sentiment and understanding of the rationale behind the merge will be important metrics.

  • ETL Reporting Needs: We do not anticipate needing new ETL reports for this proposal, but we will ensure that existing financial tracking systems are updated to reflect the new allocation.