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Governance Proposal: Envisioning a More Decentralized Future v3

August 17, 2023

Here is the latest proposal for an upcoming Founder’s Node vote about the Node-based lifetime points system.

As we continue on the path of innovation and collaboration, we present the third revision of the proposed ‘Node-Based Cumulative Lifetime Points’ system. This update is the culmination of significant analysis, extensive community dialogue, and numerous insightful revisions that have shaped our approach to network decentralization.

We are excited to announce that the governance voting platform has been thoroughly audited by the independent security firm CertiK, adding another layer of confidence and integrity to our process. Moreover, we have deployed a transparent node voting tracking system to Discord, enhancing the transparency and engagement within our community.

Among the many contributors to our extensive discussions, AnthonyRa’s input stands out for its creativity and depth. While his proposals, such as locked pools to mint game-specific tokens, have generated lively debate and are indeed innovative, it is essential to recognize that the majority of these ideas fall outside the scope of the Node ecosystem. Although these suggestions may not be implemented within the context of a Founder’s Node vote, they represent the ingenuity of our community and the potential for decentralized development. Once GalaChain is accessible for other games, we envision these ideas can be explored and built upon in a decentralized manner.

The synergy between our community, governance mechanisms, and transparent processes underscores our commitment to a more secure, decentralized future. This third revision is a testament to what we can achieve through collaboration, openness, and a shared vision.

Modifications to the Previous Discussion Draft

The extensive engagement through countless hours of communication, emails, AMAs, and live streams has fostered an incredible atmosphere of creativity and collaboration within our community. Your valuable insights and innovative thinking have directly led to the realization of several substantial modifications to the last version of the proposal:

1.) Abstain: In response to community feedback, an “Abstain” option has been included in the voting process. This allows members to actively participate in the decision-making process without having to choose between the main options, acknowledging the complexity of the proposal and respecting individual preferences.

2.) Five Node Exemption: To encourage more equitable participation, the logarithmic function for bonus point assignment now begins after the operation of 5 nodes. This change ensures that smaller operators are not disadvantaged, fostering a more inclusive ecosystem that supports the decentralization goals of the network. It reflects our commitment to balance and fairness within the community.

3.) Logarithm Adjustment: After extensive community discussion and analysis, the logarithmic value has been revised to 7.7 instead of the previously suggested 6.5 (The DrWookie Variable). This adjustment further aligns with the broader incentivization structure and reduces the disparity between the lower tiers of node operators.

4.) Adjustment of the “Free Mint” Allowance: A new provision has been added to the proposal, modifying the previous free mint allowance to 20% from 5%. This allows operators to remove a portion of their $GALA without point deductions, enabling them to fund server costs or make necessary purchases. This change recognizes the operational expenses involved in maintaining Founder’s Nodes. Note: The will equate to 20% of the average daily emission per Founder’s Node for that day (totalDailyMint/50,000) that can be minted to GalaChain without any point deduction. However, this is a DAILY allowance and does not stack. This ensures that operators taking advantage of this are actively engaged and not “set it and forget it” operators.

Below you will find the full text of the mint proposal. Some of it is repetitive of what has already been stated, but is included in the official proposal text for completeness’ sake.

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Governance Proposal: Implementing a Node-Based Cumulative Lifetime Points Structure with New Logarithmic Function to Advance Decentralization

Introduction

This governance proposal presents an innovative bonus points structure based on the concept of “Node-Based Cumulative Lifetime Points.” This strategy focuses on the number of Nodes operated by a user, aiming to counteract platform centralization and foster decentralization within our ecosystem. With the proposed system, cumulative lifetime points accrue daily, directly correlating with your active participation in our community.

Proposal Details

We propose the adoption of a new logarithmic function, P = 7.7*log10(N), for the allocation of bonus points beyond 5 nodes. Here, N signifies the number of Nodes a user operates, and P denotes the points awarded. Here are the points for various Node counts (N) using this function, rounded to two decimal places:

Operating 1 Node: = 1 point
Operating 2 Node: = 2 points
Operating 3 Nodes: = 3 points
Operating 4 Nodes: = 4 point
Operating 5 Nodes: = 5 points
Operating 6 Node: 7.7*log10(6) ≈ 5.99 points
Operating 7 Node: 7.7*log10(7) ≈ 6.50 points
Operating 8 Node: 7.7*log10(8) ≈ 6.95 points
Operating 9 Node: 7.7*log10(9) ≈ 7.34 points
Operating 10 Nodes: 7.7*log10(10) ≈ 7.70 points
Operating 25 Nodes: 7.7*log10(25) ≈ 10.76 points
Operating 50 Nodes: 7.7*log10(50) ≈ 13.08 points
Operating 100 Nodes: 7.7*log10(100) ≈ 15.40 points
Operating 250 Nodes: 7.7*log10(250) ≈ 18.46 points
Operating 500 Nodes: 7.7*log10(500) ≈ 20.78 points
Operating 1000 Nodes: 7.7*log10(1000) ≈ 23.10 points
Operating 7000 Nodes: 7.7*log10(7000) ≈ 29.60 points

Using this updated logarithmic function, Node operation decentralization is encouraged while small operators are not as impacted.

These points will accrue in addition to the “base distribution” point which a node operator receives for operating their nodes. This means that:

A user operating one Founder’s Node will have:

Day 1: 1 base point and 1 bonus point (2 points total)
Day 2: 1 base point and 1+1 bonus points (3 points total)
Day 3: 1 base point and 1+1+1 bonus points (4 points total)
…etc

A user operating ten Founder’s Nodes will have:

Day 1: 10 base points and 7.7 bonus points (17.7 points total)
Day 2: 10 base points and 7.7+7.7 bonus points (25.4 points total)
Day 3: 10 base points and 7.7+7.7+7.7 bonus points (33.1 points total)
…etc

Please note, these values are approximate and may slightly differ due to rounding.

Cumulative lifetime points will be added to the distribution daily, rewarding consistent Node operators over time. However, these bonus points will be deducted when users mint their $GALA at a rate which aligns roughly with the rate of halving using the following schedule:

Tranche 1: 1 point per 1000 GALA minted to GalaChain
Tranche 2: 1 point per 500 GALA minted to GalaChain
Tranche 3: 1 point per 250 GALA minted to GalaChain
Tranche 4: 1 point per 125 GALA minted to GalaChain
Tranche 5: 1 point per 62.5 GALA minted to GalaChain

This mint fee in the form of bonus points creates a dynamic ecosystem where Founder’s Node operators ascend and descend through the distribution ranking based on their own behavior.

There will also be a daily “free mint” allowance. This will equate to 20% of the average daily emission per node for that day (totalDailyFNMint/50,000) that can be minted to GalaChain without any point deduction. However, this is a DAILY allowance and does not stack. This ensures that node operators taking advantage of this are actively engaged and not “set it and forget it” operators.

Note: It is not possible to go below your daily base distribution point total.

New Founder’s Nodes joining our ecosystem will begin with the lowest Node bonus point total from currently operational Nodes, providing a fair starting point and ensuring that they are not disadvantaged by having to catch up from zero. While this initially introduces an incentive to spread nodes around to “reset” bonus points following a mint, it will gradually trend downwards as more people mint and engage in the ecosystem. This is just to prevent it from becoming severely imbalanced.

Implementation Duration

If passed, this distribution will be in implementation for 12 months from the date it is put into effect. To ensure continuous community involvement, a new discussion will start after 9 months to evaluate the system’s effectiveness and decide whether it should continue, be adjusted, or be reverted. A subsequent proposal will be put forth after 10 months, and the community will vote on the next course of action. Please note that any changes to the system will likely take at least 60 days to implement.

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As with the previous revisions, the comprehensive feedback from the community has played an invaluable role in refining the ‘Node-Based Cumulative Lifetime Points’ system. As we progress with these amendments, we remain committed to fostering an inclusive, engaging, and vibrant community, constantly adapting to maximize decentralization.

As always, your feedback is invaluable. The next stages of this journey promise to be an exciting voyage towards a more decentralized, robust, and sustainable network. Let’s continue to shape the future of blockchain technology together.