NCFP 3 Development Incentives for the Nyzo Core Team: Past, Present and Future

Summary

The anonymous core team behind Nyzo developed a completely novel blockchain system that addresses many weaknesses of current blockchains and spent almost two years and more than 15,000 work hours doing so. While they hold ca. 610,000∩ coins from verifiers (full nodes) they operated on the network, they have never sold a single coin — on the contrary, they covered substantial ecosystem related and legal expenses out of their private funds. Recently, the core team decided to put the entire development fund, existing since the genesis block, under community control. Each withdrawal from that fund requiring the approval of at least 75% of all in-cycle verifiers. This so-called cycle account currently holds 77,120,398∩.

This proposal suggests a 1-time payment from the cycle account back to the developer account as a sign of the community’s appreciation of the core team’s sustained and strong investment in the Nyzo blockchain system, of the core team’s strong vision, and of their exceptional faith in the small but active Nyzo community.

A 1-time payment to the developer account will in fact get locked and released only slowly according to the previously established adoption-based release mechanism (even the above mentioned 610,000∩ are largely locked at the moment!).

The payment suggested in this NCFP will constitute a development incentive for the core team, rewarding past, ongoing and future achievements, based on actual project adoption expressed as organic transactions on the network.

Context

NCFP 2 addresses 1-time rewards for early external contributions to the Nyzo ecosystem. NCFP 3 addresses a payment to the core team which the system will in fact turn into a slow-release ongoing development incentive. I decided to abandon the previously mentioned NCFP 4 - ongoing development incentives for the core team - for the following reasons:

  • The current state of cycle account transactions makes getting a recurring payment right seem quite unlikely.
  • The locking mechanism put on the developer account actually does establish an ongoing release mechanism, and a pretty effective one too.
  • After close study of previous funding proposals by the dev team, my impression is that the team will be better incentivized by a potential future big reward based on actual success of the system than by a monthly rent. We seem to be in the lucky situation of having a core team that is in this for the long run, not for a short-time rent seeking.

Possible Rationale for an Amount

The act of creating something like Nyzo is in itself … invaluable. At the same time, the Nyzo core team set a precedence of being careful with project funds and of rewarding achievements based on real-world adoption. I personally suggest to reward the team with 7.7M Nyzo, or 10% of the funds that they gave up to the community. Again, to repeat, this amount will not become available to the team quickly, its full release could take years and would only happen if the project finds actual success in the form or real-world adoption and organic transactions.

Sources

7 Likes

Looks awesome @cryptic-monk thank you for putting this together!

Maybe future versions could lift the amount restriction for the rate limited dev account only, therefore making what remains easier to process?

Atm, it takes time and effort to vote. The client takes 10s of minutes to send one single transaction vote to the cycle. We’re talking of 77 votes there for dev account… does not seem practicable, or will span over years. Plus every transaction will need motivation and lobbying and reminders to pass. 77 of them?

A first vote tx could be both 100k max, and include vote for an uncapped amount for this account only.

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There are definitely some unsolved topics here. Working on contributing what I can to slowly get us there.

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         // These are the official Nyzo verifiers.
        id("b5fd3e8d789a5055-091e46db881f1b74-1b0ab6f8d65b21ae-88cc543dfd92173b"),  // Nyzo 0
        id("15fa0cd9b1619538-58d097090621a4de-24063449b66d4dac-2af90543389a9f89"),  // Nyzo 1
        id("4ddefde6a0c5abf7-8868f2c13803f934-c45a0f675f69fd75-0d6578046617eec5"),  // Nyzo 2
        id("1459eed3a8d3bbf1-d1faaf553f086033-6615d10e0ebd44b5-f8b5c94418457a43"),  // Nyzo 3
        id("684d8b1bfedb0bb3-19954ba3e330d825-77ed7ffa45fdf468-cfe01accac6db89d"),  // Nyzo 4
        id("e917bf3cf77b2c8e-100a3715500397ab-cb89f99963a174e1-3c5b4e11cbb72852"),  // Nyzo 5
        id("f83cf2e0e3abc5df-01bddd67fead3099-bff7efaf467010f5-3b654f293a9a9887"),  // Nyzo 6
        id("363a10a67dfac9a2-ac59dc7a1fd03e37-05665f01560d399c-78a367dc21ce94ce"),  // Nyzo 7
        id("de2fd26165e1b774-ce8da5365040fc60-be84a2167e1d62e7-f847b40fea05863a"),  // Nyzo 8
        id("92a5849feebbb2e1-fb64b6d93940bad3-6168ff0d4f984f1a-7b64dc6fedc0dae5"),  // Nyzo 9

As nyzoStrings:

Nyzo 0: id__8bo.fFTWDC1m2hX6UWxw6Vgs2IsWTCJyIFAcm3V.BytZgoahsDN5
Nyzo 1: id__81oY3dDPpqkWnd2o2gpyGdWB1Ah9KDTdI2IX1kcWDG~9zSnx2qrV
Nyzo 2: id__84Vv_vrxPrMVz6AQNjx3~jj4nx.EoUE.ugTCv0hD5~Z5p5hM3PFu
Nyzo 3: id__81hqZKeFSZMPSwHMmj-8p3dD5u4e3IT4KwzTQkgphoG3ZTTQRQpV
Nyzo 4: id__86ydzPM~UNLR6qmbF~cNU2mVZo_YhwVSrc_x6JQJsszua_S7524c
Nyzo 5: id__8eBoMRRVvQQe40FV5m03CYMbzwDqpY5SWjPsjy7bKQyi07~ubwHD
Nyzo 6: id__8fx–L3AH-ow0sVuq_YKc9D_.~~MhE0g.jKCjQBYDGz72811JoPW
Nyzo 7: id__83pY4aq.~JDzI5Etvy_gfAt5qC-1mxSXE7zAq.NyRGjeRKZ72xT5
Nyzo 8: id__8dWMSD5CWsuSRFUCdC10_62~ya8nwyTzX_y7K0_H1ppYBEsF1teA
Nyzo 9: id__89aCy9_LLZby~UiUUjC0LKdyrf-djXyf6EKBV6_KNdICIpCfGqK3

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Sent transactions:

1/n 100000 sig_g6jd99.y-ooPSTcAB~kb2N8VqfuP5xhZ44jUT7X_oD58GhyjS0uvZMm0MS0Bvu54Hmbge_eWfzA.5o49VVqw-xLu5CZ-
2/n 100000 sig_gfPeNiqmmJp.s9F-yEeb4PSyT6LqACqGXjUU2hBh8i_-T9eDC77Fx7N4UZZ0~79hFQU-cMXmqiAxnxppIZ1GC0.JHUTc

These transactions did not go through because they were submitted prior to NTTP-3. I will submit these again after NTTP-3 approval.