Tezos Foundation Staking Rewards

perfectparadox · January 25, 2021, 7:07pm

I’ve seen a few post about the TF holding too much power in terms of voting. I’ve seen ideas to burn or simply move the tokens to an undelegated account. I can’t say that I fully understand the implications of why or why not this should be done but I did want to propose an idea:

We all want TF to stay funded, I assume. What if the TF kept their stake at a certain percentage when it came to voting. IE 20% of the ecosystem. Anything above (gained from baking) could be sold directly to investment firms for a price slightly below market value. (5-10%) Directly on the market if there is not enough demand and those funds placed into grants.

This would encourage firms to list Tezos on their asset sheets as they are receiving a slight discount. Reduce the amount of centralization in the ecosystem, fund TF for future endeavors while still encouraging the TF to strengthen the chain and price (They are required to sell so the higher the price the better of course), and encourage investments firms to enter the market all while creating buzz from a marketing aspect. I don’t know how feasible this idea is, but wanted to get some feedback from you guys.

Milfont · January 25, 2021, 5:56pm

I perfectly understand (and agree with) Tezos Foundation’s effort to build and maintain a solid reputation. Nevertheless, in my humble opinion, TF could (besides fostering to raise the number of developers and courses) act just a little bit in marketing and also in something like what you mention in your post. I don’t see anything wrong in working to increase liquidity and market adoption. This is business. Other blockchain projects that don’t even get close to Tezos technically are more active in spreading the word towards adoption. Even with inferior products, their foundations/teams act fearlessly to make their products known/listed/used/adopted/seen. Creators, curators, core-devs, foundations should be openly proud of what they have built and act as evangelists. If we don’t, others will. Being blasé will not help at all.

perfectparadox · January 25, 2021, 6:17pm

I see you constantly spreading the word too. So thanks for that. I’m just trying to get some ideas out that might be beneficial to all sides. This still allows TF to have substantial voting power but also ensures that the community still matters. They can sell XTZ without scrutiny or the stigma of “The Foundation sells their Tez, It’s a scam!!” while funding development into the future. As the ICO funds keep growing the future longevity of the foundation does as well. This method is a couple of birds with one stone like marketing and public perception as well as utility and decentralization.

Milfont · January 25, 2021, 6:24pm

I totally agree with you. Indeed, I and others are helping to do the work of spreading the word, but our reach is limited and it is an herculeous effort for common people. So, a little institutional movement would be astonishing.

trolleps · January 25, 2021, 6:33pm

I agree with marketing and spreading the word but idk why you want TF (or anyone) to sell their tez. They have bitcoin or cash or whatever to spend on marketing. And hodl xtz

Milfont · January 25, 2021, 6:35pm

IF selling, could be just the tez earned as rewards.

perfectparadox · January 25, 2021, 6:52pm

I think part of it goes back to decentralization. The argument could be made that “Even though the TF isn’t currently baking… If they wanted to, they could just start baking to pass whatever protocol upgrade they wanted if it was contested!” I’m not sure why the community wants TF to hold so many Tez.

“The Tezos Foundation is a Swiss foundation, supervised by the Swiss Federal Foundation Supervisory Authority. Our purpose is the promotion of the Tezos protocol through grants and other capital deployment vehicles.”

Looking at the first line under “About us” is about benefiting the community, not just having stacks. I’ve never been big on the outcry for a ton of promotion before the chain is fully capable. The chain has just recently become more capable than any other chain so now I think the ideal goal is to develop on the superior chain. Other chains are constantly creating more coins to act as band-aids and clogging their network. Tezos is solving every problem of other chains with ease and will certainly be more scrutinized by users of those other chains.

What I’m trying to do is look at it through more than just my Tezos glasses. What can we do to maintain a stellar reputation, add funding to grants, and appease the community. Keep in mind that setting a percentage like 20% means that the number of Tez the foundation holds also increases as more users enter the Tezos Community.