Hi everyone !
Today, I’ll present you some important information about how the FX network is operating.
I’m pretty sure only a few heard about the Community Spend Pool (CSP).
Ecosystem Genesis Fund (EGF):
You probably all heard already about the Ecosystem Genesis Fund (EGF), which the team funded with 75M $FX.
Well, first, the EGF is a team-funded pool : it was endowed with 75M FX, as described here and here.
==> ERC20 original address
Only the team can access this fund, has the private keys for it to be used and can dispatch it on programs such as FXDM (FX Decentralized Markting, endowed with 1M FX).
It’s now been transferred to some FxCore network addresses :
- FxCore address #1 : fx1pgmjd400qfkh6t2hu7gnme47wdj6adwwa2wkam with 21.2M $FX
- FxCore address #2 : fx1j59we8wnp72sna8fjdchpkf0s62m0q9va5yv03 with 13.7M $FX
- FxCore address #3 : fx19ukzjkag6n4lqgejfu33046qc036rw76thgsqv with 12M $FX
- FxCore address #4 : fx1mtsq7ta90r3xj35q5sq3tcudelkyhzlh8dufzp with 10M $FX
- FxCore address #5 : fx1wv2el7g92raz5jcv4fhsjvdcxl3hyqdd59repg with 9.9M $FX
This makes for a total of 65.8M $FX, and the rest seems to have already served other purposes.
Community Spend Pool:
But then, what is the Community Spend Pool ?
Well, all Cosmos SDK-based blockchains implement this smart-contract reserve, an automatically-funded pool. And FxCore, like PundiXChain, implements this mechanism like every other Cosmos blockchain.
And how is it endowed with any fund ?
Any transaction happening on the blockchain helps funding this pool (deposits from proposals land off in this pool as well!). When a validator is elected to validate a block, a block reward is produced by the network (minted based on inflation) and contains transaction fees, which are not fully going to the validator : only the commission-fee %age of it goes back to the validator self-bonded FX address. For example, if your validator has a 0% commission-fee, it will get nothing out of the block reward. If it has a 1% commission-fee, it’ll get only 1% of the block reward. The rest is going to the delegators as bonus, and to the community pool.
In FxCore, the community “tax” has been set to 40%, meaning 40% of block rewards are going back to the Community Spend Pool. This parameter can only be changed thru governance voting. This can be checked thru the following commands on any full-node:
fxcored query distribution params >>base_proposer_reward: "0.010000000000000000" >>bonus_proposer_reward: "0.040000000000000000" >>community_tax: "0.400000000000000000" >>withdraw_addr_enabled: true
Currently, the Community Spend Pool is endowed with 29M $FX !!! Noone can freely access this pool unless he has the capability to force a vote on governance. Thus, it shows how important it is to have a decentralized repartition of the delegations and wealth of the FX tokens. You can easily check the current amount on a full-node :
fxcored query distribution community-pool >>pool: >>- amount: "29010457399965915091501887.415426261645961669" >> denom: FX
You can also check the commission fees collected by any node. For example, here, it’s FrenchXCore’s all-time collected commission fees to date : 0.000000000000000000312 $FX (2-months old)
fxcored query distribution commission fxvaloper1z67rkadwrp2nf4zwxpktpqnw969plelyjj5alt >> commission: >> - amount: "0.312786536058659961" >> denom: FX
and this is Singapore’s all-time collected commission fees : 7k $FX (7-months old)
fxcored query distribution commission fxvaloper1a73plz6w7fc8ydlwxddanc7a239kk45jnl9xwj >> commission: >> - amount: "7037617607718634515248.577939228117021620" >> denom: FX
Coming back to the Community Spend Pool, what is important to understand is that we all contribute to endow it : inflation rate, our transaction fees, everything happening on the network !
And it’s gonna keep growing forever : more with inflation at the beginning, and more with transaction fees in the long-term.
It is paramount to not mix the EGF and the CSP ! EGF is the team’s fund setup for everyone, in the control of the team; and the CSP is ours’, under the control of decentralized governance !
Not using the CSP makes no sense : thus, it is paramount to understand the importance of governance, decentralization and USE of this fund. And it is also paramount to have enough power to be able to trigger it if the user wish to trigger it (reach the 40% quorum AND reach the 50% YES level).
And don’t hesitate to ask if you have any questions, or if you wanna bring corrections (noone’s perfect ! ).
Thanks for reading all that through !
---------This post is kindly brought to you by FrenchXCore validator---------