@andrey I really enjoyed reading your super detailed answer, but unfortunately my question remained unanswered as What happens to the 5 million PRV earned by the fixed nodes in the first year?
That tokens will be used to support validators, liquidity providers, donated to the DAO.
- You probably saw that I am working on a program of incentivizing liquidity providers on pDEX. The idea is that users which provides liquidity for the PRV pairs on pDEX, beside trading fees will earn additional interest in PRV.
- For this program we plan to allocated 1M PRV for next 2 years.
I plan to finalize the program and share all conditions by the end of this week.
And this is the first incentives program. More upcoming.
I would like to describe why I raised concerns about this practice: Incognito isn’t trustless yet as blockchain projects usually do. Custodial risk affects the network, because a successfull hacker group could take control over 2/3 of the nodes with a single attack.
Also the distribution of the funds are not clarified. Investors think the core team will own 10% of the total circulating supply, but in reality they own +80% of the supply in the first year, which makes it possible to maintain a high ratio.
1 million PRV will make less than 10% of supply. If an average investor buys 5000 PRV, only 200 new members could invest in the next 2 years?
In my opinion most of the mined coins should be distributed publicly in a sale or sales over a period to provide liquidity & adoption that way. Currently PRV holders could not buy even 10k of PRV at fair price.
The regular crypto gathered from these sales could be used as a perfect way to fund new projects in the DAO, because people will not dump them on the PRV market.
Please open a public discussion about this topic, because these decisions have a significant part in the future success of Incognito. Neither an illiquid, poorly distributed or over-premined coin could stay alive in the long-term.
I bet @duy has a good strategy related to wider adoption & distribution, would be cool to hear him as well.
We’ve been working on this project for 2 years, so if we wanted to drum up hype or speculation around the project it would have already happened in 2018 - 2019. And we would be one of thousands of other “crypto” projects that do not offer any value.
We chose to focus on utility, on the fundamentals. Many decisions we make have a long term view, which we admit, sometimes sacrifices the short term outlook.
Over the past couple of weeks, we’ve gotten some similar questions about decentralization. We prepared a piece in response here: https://incognito.org/t/incognitos-pragmatic-approach-to-decentralization/1382
Let me know your thoughts.
The core team owns only pre-mined tokens, 80% of which are locked. PRV from fixed nodes are used to fund development projects from the core team as well as the community (see the DAO category on the site), fund initiatives (like pDEX mining or community rewards), pay server costs to run these fixed nodes, marketing and partnership activities, etc.
Over the first 12 months, the community will mine ≈ 3M PRV.
This is what will happen/is happening. The plan to maintain a steady flow of community funding for long-term projects, as well as to fund incentives programs for Validators, Liquidity providers, and finance other important initiatives designed to grow the project.
What does fair mean? Do you mean slippage? If so, we hope incentivizing liquidity providers will sort that problem out. The Incognito team does not control the PRV price.
Sure, that’s the point of incognito.org.
Andrey I really appreciate your effort to answer my questions, however you haven’t convinced me yet.
I don’t want to push this further, Incognito is indeed a great project and as I am a perfectionist I quickly find issues with anything anyway.
But as a power user, I like to know every small details on a project when I invest time & money.
We all hope distribution will be fair and transparent as it was proposed. That’s all.
I don’t want to try to convince you by nice words and promises, you probably heard and saw it from many projects.
Instead, I would try to convince you by real actions. Deliver first, then talk. It’s a bit longer way, but this is the way we choose.
Once we start the first initiative to incentivize liquidity providers, you will see it and will have a chance to try and verify it. I think it would be the best way to convince you
The software is some of the most polished I’ve seen in an early stage effort, hands down.
And I love having the forum in my wallet, so to speak.
Talk about a gold mine of valuable information regarding Incognito. Thank you for posing these questions @Jacob
Do any of you know of a post detailing the tokenomics of PRV?
Here’s the post:
PRV token information & economics (tokenomic)
Should the 20 Questions format work out, we’ll also do an explanation video that answers questions around it in the coming weeks.
Hey, @Jacob, I see you made a lot of questions and you got a lot of answers. Would you mind editing your post to copy and paste the answers you receive? It would make your post a lot more readable.
Using the Hide Details function inside the gear?