Discussion about the Donation matching - Letter to the Freicoin Foundation

[Arcurus 291]

Dear Jitmon, maaku and all other Foundation members,

with the current Freicoin price so low and with handling the Bounty for the Mobile Wallet, we reached already more then 450.000 Donated Freicoins in just some days  

With currently 25% matching as maaku said this would be little more then 100.000 FRC or 0.5 BTC = 150 Euro.

 

How should we proceed?

Should we stop donating, until next month is reached?

Or will the foundation with the currently very low Freicoin value increase  the given out amount per month?

The current 100 K Freicoin limit was in a time where the Freicoin value was 20 times higher than now.

 

Will the Donated Freicoins at least counted to the next month if they are not fully matched?

 

What do you recommend?

 

All the good,

Arcurus

[Fabrizio 156]

Hmm, I dont see it necessary to stop the donations I'd think the Freicoin Foundation will find a suitable and fair solution for this, possibly match the donations that go over the limit at later time?

 

I think the 100k limit is pretty alright, since I dont like to compare the value to fiats 100k is pretty big percentage of the total supply of the coins.

[Arcurus 291]

Hmm, I dont see it necessary to stop the donations I'd think the Freicoin Foundation will find a suitable and fair solution for this, possibly match the donations that go over the limit at later time?

 

I think the 100k limit is pretty alright, since I dont like to compare the value to fiats 100k is pretty big percentage of the total supply of the coins.

Hi Fab,

yea, you are right, we should not stop the donations, I also think after the talk yesterday, that the Freicoin Foundation will find a suitable and fair solution so we should proceed. 

 

But with the maximum of 100K I don't agree:

 

The goal of the foundation was:

 

Q: When, in the future, will all the coins have been distributed?

A: About 3 years after the project launched (December 2012), which means sometimes in 2015 or 2016.

(see http://freico.in/faq/ )

 

Currently no significant amount of Freicoin is distributed, that means we still have theoretically* to distribute.

round about 3,3 Million  Freicoins per month if we want still reach the goal in the end of 2016.

(100 Million * 80% (foundation part) / 24 Month (maybe little bit less with demurrage)

 

 

Currently still each month round about 2.16 Million Freicoins per month* are newly distributed to the Foundation.

(500 (foundation part per block)* 6 (target blocks per hour) *24 (hours) *30 (days))

 

We should at least aim to distribute these coins.

 

 

So my suggestion would be that we increase the given coin amount maximum to 2 Million Freicoins and on the same time increase the coin matching to the agreed 100% matching.

 

Also I would suggest instead of enforcing some limit per organisation we should require transparency from organisations / projects that got a significant amount of Freicoins from the matching. So that the Freicoin community can have a look if they agree or not agree with the use of the matched Freicoins. That will be a lot more effective for fraud detection then the current used cycling detection. 

 

We should create our own block-explorer that displays the donations per project and see to which other project they have been transferred after that.

That would make fraud attempts a lot easier to detect.

 

 

The main reason to create the foundation was to find and experiment with alternative less power consuming issuing methods then mining.

So that we can distribute the dumurrage (or a part of the demurrage) with such an alternative issuing mechanism.

That would be round about 416K Freicoins per Month (5% from 100 Million / 12month)

Lets say we want at least distribute 50% alternatively. That still would be 208K Freicoins per Month.

 

 

-------------------------------------------------

*I don't know yet if we should still aim for the goal of distributing all coins until end of 2016, because currently all the demurrage is going to miners, so we would have no coins at all to distribute after 2016.

 

So I suggest to start with 2 Million Freicoins per Month with 100% matching, and after an certain time span (lets say one year) when we have more experience, we can adopt the matching.

 

Alternatively another maybe better solution would be to dynamically adapt the issued coins per month like for example:

Issued coins per month = Total coins of Foundation / 24 months** (that means also after 2016 the foundation would still have some funds)

That would currently also be round about 2 Million Freicoins per month.

 

If maybe in future the Freicoin Foundation is fully decentralized to something like a Freirebublic and new coins come in through demurrage, we could reduce the time period slowly to one month, that means instant payout of the demur-raged coins.

 

Also we should look into it it if we want to call it purely donation matching. For some projects like the Freieconomy (freipay, freiming, basic income and so on) project it would make  more sense to call it voting with Freicoins, donations could be still one part of it. 

 

 

All the good,

Arcurus

 

* In comparison currently each month round about 0.7 Million Freicoins per month are distributed through mining.

(162 (miner part per block)* 6 (target blocks per hour) *24 (hours) *30 (days))

[Bicknellski 247]

When December 21st 2015 hits the coin will be 3 years old and by the Foundations own rules they will have to destroy the 80% that was collected they can't keep anything as per their mandate beyond the deadline. I think we are already at point given the limited amounts we could raise with matching to have any hope of recouping much of those funds. I would like to repatriate as much as possible as long as we have a clear plan on usage for those funds. 

 

What should we be doing in the interim?

[Arcurus 291]

for me its still not clear what the plans from the foundation are in the future.

[Arcurus 291]

As far as I understood maaku, the plan is to continue with the donation matching as long as the foundation has funds.

So we have still lot of funds to test alternatives distribution methods

The longer plan is then to make the coin issuing fully p2p.

The first step here would be to allow voting on the verification of the listed orgs and Feicoin projects that apply for donation matching.

I would recommend all that have some Freicoin related projects to register them at the foundation.

If you have already an known org you can just go ahead with registering.

If not, you can describe your project in this forum. Once you have support from the Freicoin community you can then register it with the foundation.

 

In the last meetings we have been talking also about using an trust level for each org, so that the payout could be more instant.

If the coins per month for an given org / project are below the trust level, the payout could be near instant. If not the payout must be approved manually.