PRV Sink, and Voting Rights (Adding Value to the Pools)

If I understand the Tokenomics of PRV correctly, what it is currently lacking is a way to get rid of extra PRV and a way to add value to the liquidity pools. Without both of these things, it will be hard to continue to survive. Staking isn’t going to be the only thing we need.

I propose (Creating a monthly membership that a costs a decent amount of PRV)
What you get from this membership:

  • Voting Rights
  • Some sort consumable token (only created for members) [is tradeable with prv / adds value]
  • Hopefully even more perks in the future

[Voting Rights]
Users who payed the membership fee are able to vote on things in the incognito network. Since it costs money to enter we could reward voters with lottery tickets.
Lottery Tickets: These are consumable tokens only generated by voting. There could be a giant pool of money to fund the voters lottery. Lottery winners only win the interest made from the pool. They don’t win the full pool just a large percentage of the interest. Members would be able to sell their lottery tickets to other users instead of using them to enter the lottery. The more lottery tickets you use the higher your chance of wining. This incentivizes voting and could potentially add more value to the liquidity pool.

[Consumable Token]
I added the lottery token, but I feel like we need to continue to try to add more value to the pool. We should also reward members with another token that is only generated every time you buy membership. This token should be consumable so the value spent on the coin (in PRV) by purchasing membership, is locked into the liquidity pool.
Some Ideas:

  • A coin to store data on the network. You can spend it to save a specific amount of data on the network, anything you want. The more coins the more data.
  • A coin that can be used to store ethereum collectible assets in the pool. If people want to make their digital collectible assets private, they are going to need to use this coin to do so. This will also give the ability to create an asset marketplace.
  • Maybe even a Level up/Reward system. You get a coin every time you pay the membership fee. You can spend coins on leveling up your account, it costs exponentially more to get to the next level. Why would you want to be a high level? Idk, maybe you get more voting power the higher your level is, or you get more lottery tokens for every vote. Since the coin would be tradable, it will give reason to buy membership, and eventually add the value once consumed.
  • etc…

If the value of the consumable coin goes up, then more people will buy membership burning PRV coins to sell them. Which will lower the price of the consumables.

I couldn’t think of many. Hopefully you guys have better ideas. I was just brainstorming. I think having the membership system in place would be helpful to the network. I also think an interest lotto would be cool for members/voters.

A monthly member generated consumable token could add extra liquidity to the pools. It keeps the coin scarce which keeps the price high, adding liquidity when consumed and rewarding members when traded.

What are your thoughts on this?

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this is a really cool suggestion. we haven’t quite figured out all the details around voting yet, but the thought process so far is to design a general framework for deciding everything related to incognito. on the technical side, we have started parameterizing a bunch of network parameters – such as transaction fees, trading fees for specific market/pool, etc – so that they can be updated on-chain later.

it’s likely that we’ll start with a simple mechanism in which any PRV holder can lock up PRV for a period of time and get VOTE tokens back in return. VOTE token is basically a privacy coin so all votes are confidential. we’ll likely implement quadratic voting so that it will cost 1, 4, 9, 16, 25, 100, etc VOTE tokens for 1, 2, 3, 4, 5, 10 votes respectively.

the initial decision-making mechanism will likely be a simple quorum and majority margin setup. but we can also implement a focal point (or shelling scheme) to incentivize good votes and slash bad votes.

we are still researching into this. this won’t be launched until later this year or early next year. i think we have a lot of technical work to complete on privacy and sharding – before we can get to voting & governance.

as an experiment: now that we’ll launch pEthereum this month, i’m temping to just prototype an MVP as a bunch of Ethereum smart contracts first, and we can start casting votes (locking PRV and sending VOTE tokens) through the incognito-ethereum bridge.

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pEtherium looks like a good project that can help sustain incognito as a whole. So much potential. It will really merge the communities.

The ethereum bridge sounds crazy, does that mean we can have ethereum collectibles in incognito? (or is this a later possible advancement)
For example: https://www.tokensets.com/
They are ERC-20 tokens collateralized by a crypto portfolio. The portfolio can do automatic asset management and rebalancing. Can I have these assets inside my incognito?

yeah. the ethereum-incognito bridge v1 went live since late november last year. it has shielded over $2M worth of ETH and ERC20 already. you can view more info on etherscan.

also – bridge v2 (code name: portal) will go live in in a couple of months. it will add trustlessness to bitcoin, bnb, and a bunch of other coins. portal is one of the most exciting projects in q2. see video and the portal proposal.

we haven’t thought about collectibles (erc721) yet… do you think there is a demand for private ownership of erc721? i think it will make more sense once we add confidential asset, so the collectible types are confidential too. don’t quote me on this :smiley: we haven’t looked into erc721 at all. so i’m just speaking out loud.

i’m not familiar with tokensets. are they the same with set protocol, which started out as a basket of stablecoins? as long as they are a set of trustless solidity smart contracts, it’s likely that they will work with incognito through pEthereum instruction sets.

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Tokensets are indeed made with the set protocol. So I look forward to figuring that out.

As for (ERC-721) I definitely think there will be a demand because currently it would be hard to anonomize these types of assets. Adding a marketplace inside of incognito to trade these assets would also strengthen the prv economy. The problem I see however, is implementing this would definitely attract the wrong type of crowd. If your able to anonomize the sale of digital collectible assets, what if these collectibles have illegal content on them? This platform would be perfect for the buying and selling of illicit digital goods, with little to no risk. You may not want to be known as a platform for that. However, I feel like its inevitable, as the platform gets bigger, the more likely the illegal market will get a hold of it. Just like anything else.

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What do you think about voting based on liquidity providing? Instead of locking up PRV in the voting mechanism, you lock up PRV in the liquidity pools. The amount of influence your vote has could be determined by the length of time you have been providing, and the amount your providing.
This would add more liquidity to the network and give the people who are the most committed more votes.

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Hey @Revolve this is is something which is exactly in the air these days. I think it’s a good idea. Going to research how it could be implemented.

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