Governance Meeting Rundown (26 May 2021)

Since the last Governance Meeting, we have seen a number of proposals on-chain all related to source of funding for committees moving from the Secret Foundation to the Community Pool. So far, the Infrastructure, International Growth & BizDev committee proposals have all passed with over 80% votes in favour. The SecretSwap committee proposal is still within its voting period which is expected to reach its conclusion a couple hours after this thread was submitted.

Feel free to see the status of proposals at secret | secret | Governance Proposals & Results.

Leads of the Infrastructure & International Growth committees were both available and provided a short brief as to their plans going forward (the SecretSwap committee lead also gave his plans on what will happen should they pass):

  • Infrastructure committee (@moonstash): The focus shall be on the two major deliverables noted in the proposal of which documentation shall be the more immediate priority. Progress reports are expected to be published fortnightly.
  • International Growth committee (@JeremySchipper): Liaising with Brendan on creating a Secret Agents type programme with a focus on non-English language mediums. Initial steps will be to onboard individuals (aiming to onboard to both English and relevant non-English channels) before commencing the education phase.
  • SecretSwap committtee [not yet passed] (@Iowascero): He Has already been working with other existing committees including BizDev in relation to the Monero Bridge launch. Aside from that, he has been on a “bug hunt” (which is on GitHub) to help create visibility on the small issues that crop up when using SecretSwap to ensure that future iterations are more user friendly.

There was a significant amount of talk in relation to the dynamics between staking returns, inflation, foundation tax and community pool tax.

  • Inflation is currently at 15% (“upper bound”) and decreases towards 7% (“lower bound”) after the bonding rate is above 67% (“target bonding rate”).
  • Community pool tax is currently set at 2% and Foundation tax is currently set at 15%

Questions that were raised in respect of this:

  • Do people want to see inflation rates changed? If so, how would you like it changed and by what mechanism (changing the upper bound or moving the bonding rate)?
  • As roles are being moved and more clearly defined, should the community pool tax and/or foundation tax be moved?
  • In the event that adjustments should be made to the inflation rate and tax rates, should these be combined or should they be independent?
  • What are healthy levels of bonding rates for the ecosystem?

Anyone that has been mentioned, apologies for any mistakes I have made!

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Thanks for putting this together! I was unable to attend, and these notes were extremely valuable.

Appreciate it mate, glad they helped!

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Personally I think we should keep it how it is for the short-mid term. Cosmos/Atom is talking about raising inflation to make it more appealing to stakers and then other projects like eGLD have similar apy to Secret right now (15-17%) but I guess a lot of the staking rewards come from txn fees so idk if that’s relevant here.

I think it should still remain around 15% just to make it more rewarding for stakers/network security. Sienna is launching soon and Secret Swap is already out with super high apy on all the lp pairs so the average person is probably going to be more interested in LPing, rather than locking their funds for 21 days. In less words, there’s a lot of competition even here on the same chain. Liquidity is important for the defi ecosystem but there wouldn’t be a defi ecosystem without validators and stakers.

I think the inflation rate and tax rates are good for now. I really don’t think we need to cut it down for the community pool and especially not for the Foundation tax for this reason: look at Cardano. No working product and it’s top 10 by market cap. Same with eGLD; it’s not top 10 but it’s had a gnarly run and massive community growth so far. There’s stuff on testnet and staking is live, etc. but there’s not public mainnet working product right now - or at least no dApps anyway. Both of these projects were pretty much built on advertising and hype alone. Scrt is doing good but so far it has increased in value based on working products and community involvement - which is awesome. This is what we want obviously, rather than just an overhyped piece of vaporware.

The community is freaking amazing and the devs and everyone else involved in making Scrt work under the hood are awesome too. What we haven’t really had yet is a big marketing push or really any advertising. I think along with how much of the network and ecosystem are already working products, we should push for more marketing and more exchange listings, etc. This project is a game changer and I think we still have a long road ahead of us. A long road that could absolutely benefit from some community funding and Foundation spending, if I understand that right.

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