[Draft] Universal dividend project

[Arcurus 331]

Hello Freicoiners,

currently we plan to make a Freicoin giveaway thorough using the Alliance Forum infrastructure. To speed up the registration without increasing much the danger of fraudulent accounts the following draft for an universal dividend project is invitation based and designed with three different registration levels.

The intention of the first level is, that people can easily join through an invitation so that people can get easily some experience with Freicoin.

The verification for the second level is more harder to get and receives the full dividend.

The third level is very hard to get. Its use case is mainly to limit abuse of accounts through requiring invitations.

This draft also includes the concept of giving interest on Freicoins hold for security. To encourage a fair distribution of Freicoins the maximal interest is limited per person. 

The intention behind giving interest on Freicoins hold in security is that each person has an incentive to hold some Freicoins and therefore the Freicoins are more evenly distributed among the Freicoiners. Also the interest on the security encourages not just to dump the Freicoins. The security itself encourages to stay honest.  

Please feel welcome to give your feedback!

Arcurus

 

Three factor verification:

- Applicant: Level 1: just name and email plus invitation from level 2 or higher

- Member: Level 2: SMS verification plus invitation from level 3 or higher

- Full Member: Level 3: Video chat, personal meeting or well known in the community

 

Invitations:

Level 2: Can make 10 invitations for level 1 accounts

Level 3: Can make 10 invitations for level 1 accounts plus can make 1 level 2 invitation for every 1000* Freicoin deposited (100 days universal dividend)

 

To be eligible to receive a universal dividend:

- must be active, or must have shown through his actions his eligibility (Life time member) 

- Must be verified at least at 2 or higher

- Level 1 receives 1/10 of the universal dividend

 

Universal dividend:

1* coins per day Level1 

10* coins per day Level2 

100* coins (100 days of universal dividend level 1) for welcoming Level 1 

1000* coins (100 days of universal dividend level 2)  for welcoming Level 2 

0,1* extra coins for each 100 coins (36,525 % interest p. year) 

in total max 5* coins per day for level 1 

in total max 50* coins per day for level 2

* the exact number depends on how much active level 2 or above accounts are there.

Therefore the exact dividend per day for level 2 or higher equals:

 (available funds / active level 2 or above members) / 2** / 5***

** 2 because each level 2 can have 10 level 1 account invitations. with level 1 getting 10% of the universal dividend of level 2

*** 5 because 20% is given as direct dividend 80% as interest for the Freicoins hold as security

 

Information required for Level 1:

Email, Full Name

Must agree to the Freicoin mission statement.

 

Information required for level 2:

Level 1 + Birth year, birth city, picture, verification information like telephone number

Text field, why he should be eligible for Universal dividend.

Text field what he can give for the movement.

 

Information required for Level 3:

Same as Level 2

 

[Arcurus 331]

To get started here a simple solution:

100 coins if you signup with email and have an invitation

1000 coins if you sign up and verify with handy (no invitation required)

1 coin per day for email sign ups

10 coins per day for handy signups.

Invitations we give out.

 

 

[Rik8119 242]

I found this idea also on another project (circles) that brought up the idea to use the tier2 Kraken accounts to prevent the siblings problem. They need a bank account, an address and a name to verify that you are you. As they did already an airdrop with stellar, they are familiar with the idea. I offered the same thing for solidar to c-cex exchange, their main argument was that the coin was valued too low to make sense of an airdrop. Not quite an argument as we have seen that alcoins can rise 3000% a day in price. But of course this problem is solveable. Though we can - and should - start with freiexhange, the userbase increase we would gain with an older exchange would be "tremendous" ;-).

And i would change the giveaway to this:

100 coins if you signup with email and have an invitation

200 coins if you sign up and verify with handy (no invitation required)

10 coin per month if you sign up once a month with email

20 coin per month if you sign up once a month with mobile

Invitations have to be reviewed, so as long as we have no clear agenda to why we are doing this imho it's not a necessity.

Rik

[Arcurus 331]

To use Invitation is just an idea to make sure, that the number of double accounts cannot increase drastically. Maybe it's enough for the beginning to start with phone verification.

With the amount of coins: I would prefer to give out the coins on a daily basis. The welcoming coins in my proposal is equal to 100 days. 

[Arcurus 331]

With 5% coins to distribute we have 5 Mille/12 >= 400.000 coins to distribute each month.

If we aim for 100 participants at the beginning for the universal dividend with 10 coins per day we have 30*100 * 10 = 30.000 coins per month.

This would be less then 10% of the demurrage. Therefore currently i would not aim for less than 10 coins per day to start with, so that we distribute a significant amount of the demurraged coins per month.

[Rik8119 242]

I am not against it, I just would prefer to give a thousand people 10 coins than 10 people 1000 coins. To point it: I wanna spread the coins as far as possible but if we can't reach more than 100 then well it may be the way, what do the others think?

[Bicknellski 276]

or... 1 penny each to a million or 0.10 cents each to a thousand. Value is minimal... distribution of valueless coins seems trivial at the moment.

 

I love the idea. Just impractical when there would be zero demand for pennies and you can't spend those pennies anywhere.

 

 

[Arcurus 331]

If we have 100 people we can remove the coin per day slowly.

The goal should be to bring a big part of the demurraged coins back in circulation other than mining.

To Bick from nothing comes nothing, somewhere we must start.

Therefore i suggested to give some interest on coins limited per person. With that people could start borrowing each other to get the interest. This will also help that the coins are not just dumped.

Initially we could use BTCs to give the coins some value. If we do it right, and we can share the vision with the people and give some incentive to hold some Freicoins, we could get it started this way.

 

[Arcurus 331]

For me it would be important to reach the following state:

at least 80% of the demurrage is redistributed other than mining (or the equal amount of foundation coins)

80% of the demurraged coins is round about 300K per month.

per day this is round about 10K

With 1000 persons this is 10 coins per day.

If we aim for 100 people to have it running this would be 100 coins per day.

I think 10 coins per day is a good starting point if we aim for 1000 people. If we have less we can increase it, if we have more we can decrease it.

 

If we want to encourage holding some coins and supporting projects we could split the 10 coins up the following way for example:

1 coins per day per person we could use for universal dividend

4 coins per day per person for interest on coins (limited per person)

1 coins per day per person for supporting projects

4 coins per day per person for interest on coins (limited per person) for supporting projects

 

So the question is, should we aim for 100 people first, or for 1000 people?

And should we give interest on coins or not?

[Rik8119 242]

100 may be more realistic. To the interest: I don't fully understand for what exactly it is payed, in principle I would keep it as simple as possible. 1 coin power day for a project sound interesting..

[Arcurus 331]

the interest is paid for just holding some coins. 

¨0,1* extra coins for each 100 coins (36,525 % interest p. year in total not more than 40 coins per day per person)¨

 

Above (in the beginning) it is written why having interest could be good.

If you don't like interest, you could call it also security that must be hold to get the full universal dividend.

 

As summary, why giving interest / requiring a security could be good:

- each person has an incentive to hold some Freicoins and therefore the Freicoins are more evenly distributed (the max interest per person is limited)

- the interest on the security encourages not just to dump Freicoins

- the security itself encourages to stay honest (in case someone cheats the security could be taken)

- it gives economic incentives to find double accounts

- it helps to start a borrowing market, because people who have lots of Freicoins can borrow to newcomers so that they can get their full dividend

- it establishes an economic incentive for lenders to find honest accounts and therefore helps to reduce double accounts.

 

Alternative we could do it also the following way (aiming for 100 people)

100 coins per person per day universal dividend.

50% is reserved for common good projects

For each received coin 500 coins must be hold as security. 

1000 coins for sign up.

The good thing is is balances automatically:

If more people are active, the coins per day are reduced, therefore the needed security is reduced, therefore more coins come onto the market.

If less people are active, the coins per day are increased, therefore the needed security to get the full dividend is increased, therefore more coins are needed.

 

 

 

 

[fedde 311]

Hi all

I have reviewed abit on the forum software this morning. If people check their profile, and then click edit, you can now add a FRC address to your profile.

If we want to do a forum giveaway i code something that can process that in the background. It can be looked at like a faucet. This can be a ok way to attract more forum users.

I think i can extend it also with tipping some frc on new posts, replies etc etc based on the reputation buttons and new post settings, but i can not promise anything. 

[Rik8119 242]

Thats great news! Is there a way we can help?

[fedde 311]

We just need to figure out what ratio/amount/how often/what to tip, then i can make this happend the next few days.

Only those who set their FRC address under profile will be able to receive donations. 

Maby do it dynamic. Fixed amount to distribute every week. 1000 freicoins / addresses registered. Will give initial users alot. Maby we can put in some X , where that is a ratio based on how many addresses registered, set some min and max variables to make sure everybody get's equal.

For information about the giveaway, i can create a rss feed, like the news forum i tested earlier to autmatic generate a report that will be posted there every time a distribution is made.

 

[fedde 311]

Ok, that took me 15 minutes to prepare and get the addresses out.

What i need now is what formula we are going to use.

How much | When (daily/weekly)| ratio? | etc etc

After that i will adjust things to run it correctly and get a feed into a forum here to make the payouts transparent. For payout list, do we want it with usernames or just the addresses?

[Skaro 129]

Well in the ideas written above, there seems to be a consensus (sort of) on 1000 FRC for signing up. I signed up.

 

Now that the system is materializing here in the forum, maybe the ideas may change. I think it a good idea to support spending FRCs in places other than the exchange too, since now FRC looks profitable to miners. For sustainability, we need places to spend FRC. The 'market' section of the forum is a good place, that could perhaps be advertised directly on the exchange too.

 

 

[Skaro 129]

I like the rss feed. Fanfare promotes impulsive spending. :-)

[fedde 311]

Yeah. The forum would basicly act as a faucet.  Only we put in some more more hocus pocus ????

[Arcurus 331]

i would suggest:

- 1000 FRC for signup

- 10 FRC per day

both number will be reduced when more sign up. 

- weekly or monthly report with frc address and account name

 

Verification:

- required to receive the frc is a small two three sentence intro text,

further requirements: a link to a post of a social media account to verify the ownership. The account should have name and picture

 

Optionally we could also give some interest on the FRC limited per user, to encourage holding of some coins.

Because the FRC interest is limited per is still helps to create a more equal distribution

 

 

 

[fedde 311]

Quote

i would suggest:

- 1000 FRC for signup

- 10 FRC per day

both number will be reduced when more sign up. 

- weekly or monthly report with frc address and account name

This is ok. Fixed values.On signup it can be processed once a user har registered on forum, one the 1k is paid out, we flag him so it does not happend again.

Quote

Verification:

- required to receive the frc is a small two three sentence intro text,

further requirements: a link to a post of a social media account to verify the ownership. The account should have name and picture

Will see if can figure out how to add a vertification here. I have seen it on other forums.

Hope you have some social account Arc

 

[fedde 311]

Btw, i openend another thread here to move forward with this forum thingie, can we spam there instead ?

 

[Bicknellski 276]

Yes this is good Arc. The demurrage should be involved in paying for things like that though... wish we could get more such things going so there are multiple areas giving out FRC so it is a different version of an kria "faucet" 

16 hours ago, Arcurus said:

i would suggest:

- 1000 FRC for signup

- 10 FRC per day

both number will be reduced when more sign up. 

- weekly or monthly report with frc address and account name

 

Verification:

- required to receive the frc is a small two three sentence intro text,

further requirements: a link to a post of a social media account to verify the ownership. The account should have name and picture

 

Optionally we could also give some interest on the FRC limited per user, to encourage holding of some coins.

Because the FRC interest is limited per is still helps to create a more equal distribution

 

 

 

 

[Arcurus 331]

11 hours ago, fedde said:

Hope you have some social account Arc

 

lol, most of them i deleted, some i recreated, but i kept my diaspora account

What is about just using a list where be put in the forum name of who is verified? 

[Arcurus 331]

1 hour ago, Bicknellski said:

Yes this is good Arc. The demurrage should be involved in paying for things like that though... wish we could get more such things going so there are multiple areas giving out FRC so it is a different version of an kria "faucet" 

ideally it would be great if we could use the demurrage for that.

practically currently we could use the foundation / alliance coins to get started.

if the foundation still happens to be inactive we could use riks changes and port them to Freicoin. That of course would be the last resort if we don't get life signs from the foundation.

[fedde 311]

To use foundation coins, we just have to donate to alliance and hope they can get the foundation matchin in place by the end of the month.