There is a large question mark around what will be done with unsold tokens. If they are simply burnt, then the ideal distribution won’t be met. Of course, this is a problem. There is the notion of distributing them to existing FHR (I’m one of them so that could be nice), but I don’t know if that’s the best way to incentivize network usage. At least, I don’t think it’s as good as what I’ll suggest below:
Let’s define a few network participants:
- Miners [Sentinels, bridges, archivists, diviners]
- dApps [phones with geo-dApps installed]
Then let’s define a deadline (we can more properly define this later):
June 1, 2019
Finally, let’s distribute:
All participants that enter the network prior to the due date receive unsold XYO tokens
For the miners, the tokens may only be used for staking for some amount of time. i.e. XYO (the company) could associate a public key to your IP Address for staking, without giving you the ability to dump on an exchange. After some period of time, or minimum network activity, the tokens are sent to the device owner to use as he/she pleases. The amount you receive for staking could be distributed by the amount of hash power you’ve brought to the table. After you receive your staking tokens, your mining abilities would be bolstered.
Similarly, the dApps may only use the tokens for network costs. This may be a little tougher to accomplish. But if there was some logic built into the tokens or the network that could say “if this token came from post-gamma distro, then it’s first destination must be back into the network (as payment)” … it would be like an XYO gift card.
The actual nature in which we enforce the logic of staking/spending could be hardened, but I think my idea is overall clear, and fairly powerful. Shoot, we don’t even have to enforce anything. They could just be rewards for being “Founding Network Participants” FNP, similar to FHR and let the device owners do as they please.
In my opinion, we accomplish the following:
- Distribution goal is met - all coins end up in the ecosystem and in the hands of people who both want to use the tokens and hodl them, but not sell them.
- The more the FNPs use the network and spread the word, the more valuable their reward will be when it’s distributed after the deadline.
- Network growth and usage is incentivized
- Tokens don’t get dumped.
Another approach would be for XYO to guarantee some amount of tokens to the first group of miners. The cost of building a miner (archivist, diviner, etc.) could be immediately offset. This would be GREAT incentive to get started.
We’re basically saying “hey, we’ve got some extra tokens here, and we only want to give them to people who provable participate (have miners, dApps, etc.)”