Disclaimer: The Management Board has done extensive on-chain and off-chain analysis before putting forth this proposal to the community. The testers’ identities weren’t shared with the Management Board members but cross-checked by the Core team.
Decrease Beta and Gamma testers CVP allocation by 20.7% and total CVP supply by 2%. This represents a total decrease of 2,000,000 CVP slashed from 40 idle testers. Other testers will still have their tokens based on their on-chain contribution and off-chain activity (see details below). Therefore, if this proposal is approved then the new Beta and Gamma allocation will become 7,600,000 CVP. This amount can be changed in the future based on Governance proposals.
We propose to develop and launch a new vesting contract for tester’s allocation which will allow Management Board to manage allocations and distributions for individual testers.
Set-up allocation management rules and limit Management Board actions to: changing vesting rules of individual testers, burning unvested token of individual testers.
All allocation change proposals have to be verified and executed by the PowerPool Core team.
If you’re a tester and want to know where you stand, and how you can help, please message @powerpoolAdmin!
Powerpool had a controversial token distributed that allocated 15 million CVP, 15% of the total supply, to three tranches of testers (Alpha, Beta, Gamma). Each tranche was allocated 5 million CVP, 5% of the total supply, but with different unlock periods. Alpha testers’ allocation was unlocked on Powerpool’s launch. The distribution’s goal was to bring valuable players, with different skill sets, to help the protocol scale quickly. While many testers have provided immense value to the Powerpool ecosystem others have been idle on-chain and off-chain.
In Q4 2020 CVP Community voted in favor of implementing a 6 month lock on the Beta and Gamma allocations. Additionally, 350,000 CVP was forfeited to the Community treasury by 7 testers who didn’t complete testing tasks.
The time has now come to make another decisive decision for Powerpool’s future.
In accordance with the Management Board’s mission, to scale Powerpool in value, we are proposing the following.
The Management Board proposes to infinitely lock, or burn, 2,000,000 CVP from 40 idle Beta and Gamma testers. This represents 20.7% of the Beta and Gamma allocation and 2% of the total CVP supply. This was done by analyzing extensive off-chain and on-chain data. We then sorted Beta and Gamma testers into three groups based on their activity on-chain and off.
We propose to develop and launch a new vesting contract for tester’s allocation which will allow Management Board to manage allocations and distributions for individual testers. However, the current vesting contract will be frozen and token allocations will be migrated to the proposed vesting contract. It will take some time to develop and audit the new contract. Therefore, we’re proposing to delay the vesting start date until the new contract will be deployed. The current vesting begins April 1st, 2021.
We propose the following rules for management of testers’ allocations.
For every tester allocation the following decisions can be made by Management Board:
- Vesting period for tokens and votes (voting vesting) can be prolonged for any tester allocation with no limits on number of such extensions or their duration
- The remaining tokens (amount that is vested) can be transferred to a zero address what is equal to burning them
Contract management and team capabilities:
- The contract will be managed by the team multi-sig
- Team will verify every proposal for vesting prolonging/slashing from Management Board based on their own data (including off-chain contribution) before executing such a decision.
Provide the community with a fair and transparent distribution for testers’ allocation that reflects their commitment to building the Powerpool ecosystem. This will help create a more equitable ecosystem and align all stakeholders. Additionally, this will decrease the inflation schedule which will allow CVP to grow in value with the upcoming indices, business development, and product launches.
With on-chain activity analysis, Snapshot voting participation, and off-chain contributions we sorted Beta and Gamma testers into three groups. Off-chain contributions were confirmed by the Powerpool Core team. Off-chain contributions include: marketing, research, strategy, product design, and other valuable inputs for the project.
- Red: Testers to be slashed right now (no governance participation, no valuable off-chain contribution)
- Yellow: These testers are on the watchlist because they have contributed somehow by off-chain activities, but barely participated in governance.
- Green: Testers who showed both governance participation and off-chain contribution.
The red group includes 40 wallets, who voted only once/never or never made any substantial off-chain contribution. The Management board reserves the right to slash additional testers in the future or prolong vesting to selected wallets if necessary (see Part C of the proposal). The motivation here is to build an aligned and active community.
So, finally we propose to do the following
- Slash 40 testers wallets (burn their vested CVP tokens)*
- Delay vesting until external security audit for the new vesting contract is received
- Deploy new audited vesting contract with changeable individual vesting schedules
- Define new rules for managing testers’ allocations (Part C of the proposal)
*From the technical point of view the team will burn 9,600,000 CVP in the old contract by applying infinite vesting to all tokens (since it is the single opportunity to burn these tokens based on the code of the contract). All testers allocations that weren’t slashed (153) will have 50,000 CVP in the new vesting contract funded from team multi-sig. It means that 9,600,000 CVP will be burnt forever, and remaining 153 testers will still have their vested tokens.
Special thanks to @Zero for analyzing on-chain activity and PowerPool team for their consulting and off-chain data verification.
The Red Group (Wallets to be slashed):
Proposal 29 Part C amendment: Setting trial period for tester’s allocations changes.
After collecting an extensive feedback on Proposal 29 from a large group of active testers and while we agreed on Parts A and B of the proposal, we suggest to change the Part C to make it more precise and actionable
To ensure better goal-alignment between Testers, the Core Team, and the Management Board and the Community, all parties involved agree to limit the time changes in individual vesting of testers can be done to the first 4 months after vesting starts.
To do it, we propose to change Part C of Proposal 29 to:
“Set-up allocation management rules and limit Management Board actions to: changing vesting rules of individual testers, burning unvested token of individual testers.
All allocation change proposals have to be verified and executed by the PowerPool Core team. For every tester allocation, the mentioned actions can be made during the first 4 months after vesting starts."