A Competitive Economic Framework for MultiversX: Toward Revenue and Reflexive Value Accrual

Governance
12

I would like to push some ideas to change the current proposal (to at least see some light at the end of a veeery long tunnel)

The key to economic sustainabilty is to earn more than you spend (or at least equal) and every economic entity’s goal should be to get there.

In our case is to burn more than we mint.

How to get there?

It will probably be a long process, but here how I see it possible (considering the team’s proposal and the needs for growth stated by the team):

Changes to the current proposal:

  1. Inflation rate and burns
  • 2M EGLD annual emmision = 6.9% (of the current supply) or 5.3% (of the current supply + RSI mints)
  • 50% base fee burn, 50% to builders

This translates to the network needing to generate 4M EGLD in fees to offset the inflation (compared to 28M EGLD needed under the current proposal)

  1. KPIs and accountability

(Needs improvements / better ideas)

The key indicator should be the amount of burned fees.

We should have annual targets of burned EGLD (voted through governance or DAO):

Example:

Year 1: 10k EGLD

Year 2: 15k EGLD

Year 3: 23k EGLD

Year 4: 35k EGLD

Year 5: 53k EGLD

And we should also have some kind of penalties (for the next year) if targets not achieved:

Example:

Who should be accountable for bringing adoption and usage? Maybe builders, DAO funding the builders, simple-stakers for being pasive? In this case:

  • 60% fees burn / 40% fees to builders
  • Ecosystem Growth Bulders: 15% (burn the remaining 5%)
  • Simple staking: 45% (burn the remaining 5%)

Hopefuly the main idea is easy to understand, kinda difficult to think deep enough through the details in a few days while the proposal took 2 years to be made, right? :blush: