White Paper Update - v0.407
I am still proofreading and editing the white paper update, but I wanted to create a post for the new concepts.
Here are the major content updates in the upcoming 0.407 release
TUIS is primarily designed to realign tokenomic incentive structure. TUIS, PBiP, and issuance tokenomics allow immutably fixed ratios for how increased market cap is distributed amongst the stakeholders. When adoption increases, a cryptocurrency's market cap increases. How that additional wealth is distributed amongst the issuing organization, token holders, and/or other relevant parties like miners, is decided by tokenomics. If the “company” has centralized token control, they can sell as many tokens as needed for operations at any time they need, but they can also crash the price at the expense of the investors and miners. If the max supply is not immutably fixed, the issuer can “print” as much supply as desired, and dump the ever devaluing tokens on unsuspecting buyers. Fixed-supply is only one way to immutably ensure distribution of equity with increased market cap, but it only works if token ownership is distributed and decentralized, and/or there are immutable limitations on how many “company” tokens can be sold.
Most cryptoassets award early adopters with deflationary tokenomics, similar to an increasing “share” price. With a fixed maximum supply, investors know the limits of how much the “company” can dilute the token price and distribute increased market cap towards themselves, away from investors. UNSK, for example, has a max supply and a 50/50 distribution, so investors know that post-ICO, at the very most, the “company” can only increase the circulating supply by 100%.
If market cap doubles, and circulating supply does not change, then token price doubles. If the circulating supply also doubled, then token price would stay the same. For UNSK, this would mean that all “company” tokens were sold and the circulating supply could never increase again. UNSK features a quarterly unlock period, so all “company” tokens could only be sold 9 months after ICO end.
TUIS further limits the time in which this would be possible, since the issuer can only access 10% circulating supply in a rolling 3 month time period. This means that a TUIS-compliant asset could only double the circulating supply through “company” token sales in about a 24 month time period. Additionally, Unsinkable assets are always redeemable for ICO price, and “company” token sales cannot occur below 120% ICO price. If the issuing organization of an Unsinkable asset sold 10% of the circulating supply at 20% profit (Market price – Unsinkable Buyback price), then they would net 2%*(market cap) as available funds. They could do that once quarterly, or spread it out over 3 months.
If any party is able to sell a percentage of the circulating supply equal to the percentage increase in market cap, they can take all those gains for themselves.
The Unsinkable Collective “Corporate” Structure
There will be 2 distinct governing bodies within The Unsinkable Ecosystem. The open source, community controlled elements will be decentralized and/or managed by the non-profit Unsinkable Foundation. The for-profit elements will be managed and owned by The Unsinkable “Company.”
Owned and controlled by The Unsinkable “Company”
The Unsinkable Token (UNSK)
All UNSK utility platforms
“Project X” Platform
UNSK is a utility token and cryptocurrency, not equity.
Owned and controlled by the non-profit Unsinkable Foundation and/or community-governed/decentralized
“Project X” Token (“PXT”)
The Unsinkable Exchange
The Unsinkable Foundation
A non-profit dedicated to crypto education, making crypto beginner-friendly, spreading TUIS, and assisting in the management of the decentralized aspects of The Unsinkable Project. The foundation needs a board of directors that may or may not include me. To be a legal non-profit entity the board of directors identities must be known. The foundation will be responsible for: producing and marketing educational crypto content issuing, marketing, and managing PXT managing and hosting the open-source HODL Wallet managing buyback funds for assets issued by other issuers utilizing Unsinkable.io services and Project X platform
The $200,000 soft cap was chosen semi-arbitrarily. This was chosen because of a need for $100,000 24h trade volume, 10x ICO/pre-ICO funding ratio, and need for usable funds.
$100,000 daily trade volume is needed for a coinmarketcap.com listing but that does not explicitly need to occur immediately after ICO. It will be helpful for raising awareness and interest in the token, increasing token price, and achieving listings. There are also other coin/token listings that do not have strict, arbitrarily-chosen 24h trade volume like livecoinwatch.
The major minimum needs of the pre-ICO and ICO crowdfunding are:
10x-50x ICO/pre-ICO funds raised (to ensure Unsinkable airdrop tokenomics)
SSC and Web Dev ($5,000 - $10,000)
Legal and ICO consulting ($5,000 - $20,000)
10x ICO/pre-ICO funding is the absolute worst allowable ratio. I would much prefer 20-25x, and 50x would be ideal.
XLM raised in pre-ICO is immediately available, but XLM from the UNSK ICO is only available if the owner immutably price-lock HODLs. Depending on XLM/USD price, the USD values of the pre-ICO hardcap, PICOUNSK, and the available funds ($) raised as XLM, change drastically.
So, UNSK softcap should really be 15-20x pre-ICO funds raised and $10,000-$30,000 available funds from PICOUNSK investors and UNSK HODLers.
The current softcap is intended to ensure minimum 10x funding ratio if we sell all 2.1M PICOUNSK. The "$200,000" softcap is intended to represent 700,000XLM (70,000*10). Due to the lack of participation so far, I am starting to worry we will not be able to achieve this much ICO contribution. Hopefully, once more functionality is built, this will change. However, if we limit PICOUNSK sales to half of what is "available," then the softcap can also be halved down to "$100,000." I would really prefer more than a 10x funding ratio, though, so perhaps the numbers should be adjusted to: PICOUNSK hardcap - 35,000 XLM (1.05M PICOUNSK) UNSK softcap - 525,000 XLM (15x) and $10,000 available funds.
The UNSK ICO will likely continue until these needs are met. If the "unofficial" end date of 1/1/19 is met before soft cap is reached, then it will be extended.
Ideally, we will see a BTC and overall crypto bullrun around the end of 2019 and UNSK can capitalize on that. If softcap has not been met by March 2019, the efficacy of TUIS and The Unsinkable Project will likely need to be re-assessed.
Social Curation Marketplace
Content, including educational content, ICO ratings, and additional resources will be curated by the community via voting, based on Reddit and Steemit. The actual mechanics for vote distribution are still under development. The system will likely be based on “Voting Points” which will translate into different quantities of votes for various Unsinkable.io features. More voting points will be provided to HODLers who make more funds usable to devs.
Currently under consideration are 3 options:
One time use votes, to get more you must HODL more – encourages more UNSK HODLing
Pay to vote – one vote costs 1 UNSK (or a USD or XLM value of UNSK) – encourages more UNSK trading
Voting Points distributed daily, you get more votes every day you HODL – provides maximum HODL value and encourages more site interaction which is useful for SEO
Voting mechanics are extremely complex and will require adjustment based on the community. Currently, Steemit has a serious problem with vote buying to promote garbage content.
HODL Points and Content Submission & Curation
Voting mechanics for chats and content will be designed to incentivize price-lock HODLing. HODL points will be used to proportionately award votes based on desired mechanics.
1 UNSK HODL Point provides 1 Voting Point. The amount of sway a single vote carries will depend on the content and active pool of voters
1 point for every UNSK price-lock HODLed for every 20% above current market price (linear increase, max 500%)
1 point for every UNSK time-lock HODLed for over a year, scaling up to over 2 points for over 2 years and down to 0 for less than 1 week. (exponential increase, max 5 years)
PICOUNSK HODLers will earn at least double voting points for HODLing
Points could provide votes daily or weekly, or be used as a single one-time vote. Allowing HODLers to vote every day would encourage site interaction but will likely result in more AWS costs. Pay to vote could also be implemented simultaneously.
The actual whitepaper release may not be until next week.