Hi everyone !
I was pretty busy yesterday and couldn’t take into account all discussed items.
As a reminder, I’d like to say the project is not 1 year old, but 3 years old actually (FunctionX initial contract → May 2019).
First, I’d like to remind everyone to stay calm. I didn’t publish this analysis for FUD (we’re quite a lot invested in this project, even if limited to 5% of our portfolio), but essentially to bring attention to things that would scare other investors. My aim is to make sure this project 100X in the future.
“Doing My Own Research” drove me to the conclusion the initial White Paper was not respected and I shared it (and not on Twitter) to have a thorough discussion with everyone. That, in no way, means the project is not interesting, but that governance needs better transparency in every way.
I sincerely think the FunctionX White Paper need to be re-baselined and all accounting needs to be as well, as suggested by @cop4200 or @Riz_Truth .
The accounting and traceability need to be more transparent : this is what DAO is all about (transparency, voting power, etc.)
One of the most important thing relates to how DAO works, and all recently submitted proposals demonstrated that, if the team does not support a project, the project could never reach quorum. This changed recently with the team delegating more voting power to public validators. This is still acceptable for now, but will not be anymore in years to come. Or at least, rules must be described as to how team delegations to public validators are managed : this cannot be arbitrary.
I don’t mind if the team’s funds are being staked, because a lot of it is delegated to public validators, but also because this is too late to not stake it : either it should have been burnt from the beginning, or it should be staked now to avoid inflation from making it less valuable.
I agree with @SCENE that rebalances can be needed for a project : however, either we talk about decentralization, DAO, etc. or we consider this project as a self-managed company. The essence here is that we all wish to have a word in that matter, even if it’s not the last word. And we expect the team to take those things into account.
Now, let’s see what would happen if funds were tranferred to the CSP:
- the EGF leftover funds (~65.76M $FX), EBT (~18.9M $FX), PCV (~30.8M $FX) and FXS (~14.4M $FX) transferred to the CSP [PME funds will still stay in the hands of the team only]
- 27 % (~129.86M $FX) would be removed from the current circulating $FX supply (~479.8M $FX), but still accessible through proposals and voting.
- Currently, the community pool is endowed with 32.95M $FX. That would make up for a total of 163M $FX available for proposals.
- The circulating supply would then be something like 350M $FX, of which 330M $FX would currently be staked. This would decrease drastically the inflation rate, thus the APY as well.
- The team would still own PME funds (58.9M $FX), delegate them to validators according to transparent rules (whether accepted or not by the community, but at least known) but still own a voting power of at least 16.8%.
- Public validators would have lesser delegated $FX in absolute, that would still be more representative of the real public voting power and a higher voting power though !
As you can see, there are clear pros and cons to all approaches, and this is what the team MUST DECIDE, through discussion on this forum, and not through an AMA-session that would not leave enough time to think and discuss about it.
But once again, the first thing to do is to put clear accounting on the table, re-baseline the funds, have a document describe all addresses, their respective fundings and what their use is intended for and how they are being spent. What about starting with this ?
A project is about trust, and I trust this project and the team but I feel like I need more (roadmap, expectations, delays), but trust can easily be lost over time.
We currently have a lot of denigrators on the web and I wouldn’t want to leave them an ounce of potential disinformation, because blockchain is all about TRUST.
Regards
@FrenchXCore
P.S.: For @zaccheah, @DavidK , @indra and all staff : I’d be happy to help writing, maintaining, proposing, animating any further discussion on the subject, along with the team.