TIP: 32
Title: Vesting Schedule for Telos Foundation Rewards Pool Tokens
Authors: EOS Detroit (Adam Zientarski, adam@eosdetroit.io, Rob Konsdorf, rob@eosdetroit.io)
Status: Defeated
Type: Protocol
Created: 2018-10-31
Voting: 2018-11-15 Yes - 6, No - 24, Abstain - 0
This proposal calls for the creation of a vesting schedule for Telos Foundation Rewards Pool tokens that were awarded to Telos Launch Group contributors.
Given the increase of 12 million TLOS in the expected token supply as a result of TIP: 0024 and the potential for token price instability at launch as a result of large sales of Telos Foundation Rewards Pool Tokens by Telos Launch Group contributors.
Less tradable tokens in circulation should also mean a higher initial token price for the network, which will help maintain financial sustainability for block producers and other network actors.
Beyond that, vesting schedules are standard operating procedure for founder's grants in traditional and token-based startups, and showcase a longer term commitment and alignment to the project. It sends a signal to the market that Telos contributors who received grants are not just attempting to loot and run.
A vesting schedule is commonplace in many startup business arrangements and aligns and ensures the interests of early contributors to continue to invest in the success of the Telos Blockchain Network long-term.
TFRP balances will be put into special accounts that have a custom unstaking period. This enables the TFRP balances to be used the same as any staked TLOS, while disallowing immediate liquid access to the tokens. An example of this today would be how Steem Power works; when SP is being "powered down", a portion of the balance becomes liquid periodically (every week), for 13 weeks total. Our recommendation is a 1 year unstaking period (52 weeks) that provides a 1/52 of the funds every week.
The total period to fully liquidate and the period by which a portion of the tokens become available are up for discussion.
This document is in the public domain