Swarm Network Proposal
Putting the community in control
Hey from Corn, TokenAddict, and two super brilliant devs. We’re making a proposal to the community to:
- Continue development: Swarm Network requires funding to continue development of core infrastructure required to facilitate tokenisation & regulatory compliant fundraising. A tokenisation app has been released but there is limited budget to iterate and build additional applications.
- A new path to rewards: There are seven months of unpaid masternode rewards, cost is: $14,000 to distribute backdated rewards and counting. Community members Corn and Token Addict have been generously donating to make that happen on several past reward distributions, but this is not sustainable. The rewards need to be brought up to date and a more modern way of incentivizing those who bring value to the Swarm Network created. This has to be brought to a conclusion, back-dated rewards made good, and a positive path forward developed. We have deployed the necessary contracts on xDai to mitigate this soon.
- Increase liquidity: There are new proven liquidity models that will meet our needs. AMM’s have opened the gate to all kinds of opportunities for high volume, super liquid pools. We plan to adopt those models for the Swarm Network ecosystem.
- Onchain governance: Onchain governance gives the community complete control of the treasury and system parameters.
Where do we go in 2021?
As long standing community members and SWM token holders, we as private individuals have invested much time and significant money from our own resources to develop an entirely new application that will allow fundraising using a modified version of the existing fundraising contract and associated contracts. This new class leading Dapp will also allow issuers to conduct self-service tokenization, fundraising, interact with all SRC20 contracts, management of back end functions such as transfer restrictions, KYA (know your asset) and even dividend distribution.
(1,2,& 3) operating a purely ‘stake to mint’ fee model for SWM is not immediately solving or assisting to resolve any of the current Swarm Networks need areas. No income for the treasury or any funding to address need areas is generated at any point, simply: Swarm is taken off the market on successful mints but again, there is no direct transfer of value back into the ecosystem, outside sporadic price impact.
The latest application which we have developed goes far beyond this, we need to continue that building-out, support ongoing costs and or continue to increase functionality. Our plan is to build treasury funds for new and exciting iterations and concurrently reward Swarm holders. Instead of staking Swarm, anyone who mints an SRC20 will pay the fee — that fee will be used to buy SWM off the market and distribute to SWM stakers and LP’s. This will supercharge the returns for those that are willing to stake and provide liquidity for SWM.
We are building an entirely new Swarm application to facilitate this in addition to the new Swarm Powered Dapp. This will ensure people who give the most are rewarded the most. No more running masternodes or having complex issues operating such infrastructure. Our new platform will make staking and providing liquidity to earn rewards simple, clean and rewarding!
A New Horizon — Community Development
We as private individuals have funded entirely the development of these new applications. Our plan is to continue to build out the solutions, distribute legacy rewards and facilitate the future rewards distribution to everyone who takes part in this exciting new ‘Swarm Powered’ ecosystem.
The proposal will move us to more modern tokenomics with liquidity incentives that will provide value to the Swarm ecosystem and supercharge the velocity of development and the Swarm token economy. A big part of this is to introduce SWG, Swarm Governance Token and additional liquidity pools that will drive higher volumes and greater TVL.
SWG will enable onchain governance and give complete control of system parameters and treasury to the community.
SWG is very simple. Liquidity providers to the pools earn SWG. The pool with the most weight is SWG/ETH. The pool with the least weight is direct SWM Stake because it is not an LP position. The SWG/ETH pool has the most weight for SWG because it also has the highest risk. SWM stake has the least risk.
80% of SWG goes to the token economy. 10% of SWG goes to the treasury where it will be fully controlled by SWG token holders. 10% of SWG goes to the developers.
80% of the fees that customers pay to use the Swarm app are distributed to the SWM pools equally. 20% of these fees go to the treasury. This replaces stake-to-mint.
Starting pools will be 5x their weight for the first 4 weeks. After 4 weeks, they will be:
- SWM Stake (Direct) — 1x (also receives $SWM fees)
- SWM/ETH LP (Balancer) — 2x (also receives $SWM fees)
- SWM/ETH LP (Uniswap) — 2x (also receives $SWM fees)
- SWG/SWM LP (Uniswap) — 2x (also receives $SWM fees)
- SWG/ETH LP (Uniswap) — 40x
We believe the solutions we have developed are class leading and with some key changes on how value is attracted and retained within the Swarm ecosystem we can build a long lasting and sustainable Swarm Network. One that is delivering value to the community and those who give back in return.
Anyone is free to build on top of the open source Swarm Network contracts as envisioned, we have done just that by developing these solutions. We trust the proposal is approved as outlined, that means we can continue to develop the Swarm Network, these changes if approved can be implemented and developed rapidly, creating even better and more exciting new applications and use cases for Swarm. This secures a strong development path for the ecosystem and a bright future.
