To our Syscoin Community, Holders, and Supporters,
Recently we celebrated Syscoin’s 7th birthday. We are one of the few mature projects that are still innovating and thriving. We are on the verge of releasing the first phase of the game-changing NEVM. This will combine the best of both worlds; Bitcoin-secured EVM smart contracts, along with a roadmap to unprecedented scaling using leading-edge innovations like rollups and Validium.
Through the dedication and smart work of all the teams and community members, Syscoin has achieved a lot on a relatively low budget. Especially compared to some projects in our market segment that hold billions in their treasuries. That said, we recognize this industry is evolving and maturing rapidly.
We have arrived at a point where, in our assessment, we have a few years to make it into the small group of blockchain projects that will serve the world. Our design and technology comprise one of the best platforms available. However, while key, that alone is not enough. We need to integrate with as many solid platforms, wallets, and tools as possible so Syscoin can be highly accessible. Most third-party providers ask large sums in terms of integration and service fees. That is their right, and good development work is indeed costly. Projects with substantial treasuries can easily pay those fees. For us, with our current governance model and SYS price, this is a significant challenge. In one example, to integrate our NEVM chain with one of the most used explorers would cost around 1 million USD. There are workarounds and we have explored them thoroughly, but in the end, we want to align with industry standards and be where the most active developers are.
As the Syscoin Foundation, our obligation is to benefit Syscoin as a project and platform. We believe the best way to move forward is to have a higher budget for development, marketing, and everything that is needed to become a highly utilized blockchain. The nature of Syscoin as a decentralized project means we need the votes and support of our masternode holders in order to raise governance funds for this.
We are presenting three different approaches to increase our budget in order to succeed as a project. These governance proposals will be submitted to the Syscoin masternode community for voting. We will also set up a temporary channel in Discord dedicated to discussing these specific proposals. This way, the entire community (not just masternode holders) can voice opinions and influence the outcome.
In short, these are the proposals:
Option One:
Combine the amount of governance that would have been paid out over the next 30 years, 28 million SYS, and pay it out across 3 years, with most of it being made available in the first year. After those 3 years, the monthly available amount would go back to 35K SYS for each superblock; the same point we would have reached after 30 years with current governance.
Option Two:
The same as Option One, but the first superblock will release an additional 32.4 million SYS. The foundation would propose for the whole amount and store it in a multi-sig wallet. This funding would only be used to sell Syscoin OTC to VCs and other corporate entities that can bring significant contributions to the growth and adoption of Syscoin.
Option Three:
The governance superblocks will begin with a high amount, starting at 10 million SYS and halving every 6 months: 10 > 5 > 2.5, etc. The sum total funds made available across time is higher than the other proposals. When needed, to onboard a VC or for a big development project, a proposal would be submitted up to the max of the superblock. In practice, these individual proposals would be far smaller in most cases. This gives more flexibility but also places more responsibility on masternode holders in terms of responsiveness, the performance of due diligence, and voting participation.
Option Four:
No funding changes. Governance remains as-is; 151k SYS reducing 5% each year.
The proposal with the most YES votes will be implemented to go live with the NEVM mainnet release.