《The LXP Product Solution Proposal》
First let’s clarify the requirements.
the builder can choose to take USD or LXP after making contributions.
when there is not enough USD in the LXDAO treasury, the builder can only take the bonds issued by LXDAO.
the earlier you contribute, the bigger the incentive you get.
the price of LXP is unstable.
Then introduce the product scheme.
We issue 2 types of token, one token is called LXU, which is a kind of bond, and the other token is called LXP, which is similar to a stock.
When the builder contributes, he can choose to take USDT from the community public fund, or he can choose to mint LXU. if the community public fund is temporarily out of USDT, the builder can only take LXU, 1LXU=1USDT. the builder can ask the community public fund for the same amount of USDT at any time in the future by destroying LXU.
LXP is issued in a “co-curve” way, only those who hold builder SBT can mint LXP by pledging LXU. the co-curve can realize that the more LXP is issued, the more LXU is needed to pledge for 1 LXP; the earlier we mint LXP, the less LXU is needed to pledge ; we can redeem the LXU at a high price later on for the LXP minted cheaply early on.
“when there is not enough USD in the LXDAO treasury” should be “If there is not many USDC budgets for the task or project”. Because the LXDAO treasury will have USDC, it doesn’t mean every project or contribution will get USDC. Also, LXP isn’t a bond. It is just proof of contribution.
“the price of LXP is unstable.” is inaccurate. “The tokens (and their value) airdropped or exchanged for LXP are uncertain yet, so hard to say how many tokens will be swapped in the future. Rules will be out in the next few months”.
Interesting idea for creating LXU, but it might be more complex to explain maybe.
LXU is interesting, but It is a little hard for me to understand completely. What’s the relation between LXU and LXP? Why the more LXP is issued, the more LXU is needed to pledge for 1 LXP? How? Could you give more examples?
LXP is proof of your contribution (your total contribution to LXDAO will be USDC you get from LXDAO + LXP), and it’s SBT so you cannot transfer and sell, so LXP has no price.
This is exactly the effect brought by the “bonding curve”, which is designed with the idea of supply and demand: LXP prices are higher when there is more market demand for LXP, and lower when there is less market demand for LXP. In the bonding curve model, the price discovery of tokens does not require much liquidity capital, which is suitable for project cold starts.
We want to give Tokens (DAO Tokens or Stablecoins) to DAO Members who contributed to the DAO. But at the moment, we do not have DAO Tokens and enough Stablecoins to pay for all contributions.
Even without many tokens, contributions are welcomed by the DAO. If there are grants for specific projects, we will pay with the Stablecoins and/or LXP. If there are no grants, we can only use LXP to record contributions for the buidlers.
Later, with LXDAO financing, we will have some Stablecoins, and we can give a choice to the buidlers to claim Stablecoins or LXP as rewards. If you need money, choose Stablecoins. If you believe in the future of LXDAO, choose LXP. For rewarding early contributors and LXDAO believers, we can design an algorithm to airdrop more DAO tokens for LXP holders than Stablecoins claimers.
LXDAO Tokens, the name might be LXT or LXC. And after LXDAO Tokens come out, LXP will be converted or airdropped and stop using anymore.
@Marcus Your point and bruce’s seem to be different.
In your opinion, one contribution=both U and LXP; But bruce think that one contribution=one of U and LXP.
I agree with @Bruce_LXDAO 's viewpoint more than yours.
Considing the LXP(or LXT in future) is priced by the Capital Markets, not DAO builders, so it is possible to issue LXP without the “bonding curve”. So I withdraw my proposal.