Hello! DIP21 has ended, and the voting result is now announced as follows:
Governance proposal content:
Based on DIP20, after a full discussion in community, we propose a re-distribution of risk-reserve (25% of protocol income): 15% of protocol income is still for risk reserve; the rest 10% of protocol income will be rewarded to Newdex, while Newdex will not receive any releasing BOX token (this counts up to 5.8% of total BOX)
Interpretation of the proposal：
DIP20 is on its way for execution and the reward for BOX staking will be canceled. This means Newdex will no longer be able to redeem and burn NDX by using the reward from BOX staking. Based on the original NDX burning model, if we continue to reward Newdex with 7.5% BOX token as it was, Newdex have to sell BOX in order to redeem and burn NDX.
The BOX selling from Newdex is neither good for BOX price nor making any use of those BOX tokens. For DIP21, the purpose is to make good use of BOX tokens. After a close communication with Newdex, we plan to reward Newdex for its funding and support in a new way, while we retrieve the BOX token right from Newdex, aiming to make good use of retrieved BOX tokens (about 5.8% of total BOX volume)
Based on the conclusions from Defibox Community and Newdex Community, we plan to redistribute the risk reserve to 2 parts: 15% is still for risk reserve; the rest 10% will be rewarded to Newdex (Newdex will use it for NDX burning), while Newdex will not receive any releasing BOX token.
Thus, the Defibox protocol income distribution will be: 75% will be used for encouraging EOS+BOX market making; 15% will be used for risk reserve; 10% will be rewarded to Newdex for its funding and support.
We are planning to put the retrieved BOX tokens into our new system - BSS (BOX Saving System), a system that encourages long-term BOX locking and stabilizes BOX price (See details in DIP22).
After the reformation, we are expecting a stronger and healthier Defibox system with a good EOS+BOX market making depth, a BOX saving System and Risk Reserve.
Time is ticking, one day in cryptocurrency world equals one year in mortal world, Defibox cannot stop.
The Consideration Logic for choosing 10% as reward to Newdex：
Consideration logic 1:
At present, about 3300 BOX are released every day, 7.5% corresponds to 247.5 BOX. According to the current price of 1.2 EOS/BOX, 247.5 BOX * 1.2 = 297 EOS, and the protocol income is about 1,000 EOS per day, then BOX value released to Newdex every day is equivalent to 29.7% of the protocol income, that is, before the end of the three-years BOX release to Newdex, 29.7% of the protocol income needs to be allocated to Newdex. Therefore, it is reasonable to exchange 5.8% of the BOX token rights with 10% of the protocol income perpetually.
Consideration logic 2:
Newdex has 5.8% BOX tokens, after the completion of BOX release, if the staking rewards remain, 5.8% BOX tokens will be staked to receive protocol income. The current total staking ratio in Defibox is about 60% , Newdex's BOX staking proportion takes up 9.67% (0.058/0.6). This means Newdex’s can continuously receive 9.67% of the protocol income by BOX staking, while still owning the BOX tokens. Thus, 10% of the perpetual protocol income exchanging for Newdex’s 5.8% of BOX token rights is a fair play.
- The proportion of the total votes of the proposal to the total BOX staking amount (abbreviation: proposal participation): 50.06%;
- The received votes of Option A (Agree) accounted for 99.19% of the total votes of the proposal;
The DIP21 has met the execution conditions. The Defibox Foundation will implement the proposal in accordance with Option A (agreed). The development of related features involved in the proposal will begin immediately. For the specific launch time and more information, please follow the official announcement.
Thank you for your support and attention to Defibox!
December 11, 2020