Dear Noir Community,
a very important poll has been opened in our discord channel (discord.gg/J3qquSz ) and you are called to re-shape the future of this coin once again.
The reasons why we have decided to open this poll are mainly two:
- Generate a proper dev fund to be used for development, exchanges and marketing
2. Increase the coin life (as it is now, the max supply will be reached on March 2021)
The team has worked hard in the last few days to find out the best possible scenarios to be included in the poll. This discussion has already been introduced to our community via social media discord/telegram and we have received a lot of feedback from the community. Thanks to this feedback we have added and slightly modified our initial scenarios.
To also get a feeling of what parts of the community think about this important step for Noir, I opened a three day poll on Twitter with the aim to identify the direction in which the community wants to go, below is a screenshot of the poll with the results.
60% of people voted for the option to increase the supply by 25%–40%. This increase can guarantee a big dev fund for the team and at the same time the max supply will be reached several years later.
These three options did not give any detailed information about the scenarios but helped us and the community to think a bit more deeply about the possibilities available.
The purpose of this article is to properly describe the four scenarios given in the the poll, presenting pros and cons of each of them.
Here is a screenshot of the community poll:
Before starting with the description of all the above scenarios, let’s start with the current state.
The max supply of Noir is 21 800 000 Noir. At block 465250 (March/April 2019) there will be the halving of the rewards from the 12.5 to 6.25 Noir per block. After another year there will be the last halving from 6.25 to 3.125 Noir per block. Max supply will be then reached in March/April 2021.
The current block reward structure is: 65% Masternodes, 35% miners.
When the max supply is reached, masternode owners and miners will be rewarded with the fees generated from transactions.
Option A
This option is the conservative scenario.
The same max supply is kept and will be reached in May 2021.
In order to generate an adequate dev fund and keep the max supply unchanged, the block reward structure needs to be changed.
The block reward will be changed in order to have a constant inflation of 3% per year, that corresponds to 3.1 Noir/block.
The dev fund will be generated in about one month and a half by allocating another 20 Noir/block to the fund. This means that for 1 ½ month, the block reward will be 23.1 Noir/block with 20 Noir going to the dev fund and 3.1 Noir to masternodes and miners. By doing that a dev fund of 600 000 Noir is generated.
The block reward structure after that will stay the same: 65% masternodes, 35% miners. No further rewards will go to the dev fund.
Pros:
While max supply and halving dates are kept, we can also add 600 000 Noir to the dev fund.
Moreover the block reward structure will stay the same (65% masternodes, 35% miners).
Cons:
The potential issue with this scenario is that the dev fund (that is created in a small timeframe) might not be sufficient to pay for continued development, marketing and listing Noir on different exchanges during the next few years. This scenario does not solve one of the issues that is the reason of the poll: To avoid reaching the max supply in quite a short time frame.
The max supply will be reached almost at the same time as with no change, in May 2021.(edited)
After that masternodes and miners will be rewarded with fees coming from the transactions. However two years is not a very long time to think that crypto will reach a mass adoption level to generate such big fees to pay out masternodes and miners. Hence the risk is that once the max supply is reached, or even before, people will lose interest in the coin.
Option B
In this scenario the max supply is increased a bit less than 10% to 23 700 000 Noir.
Max supply will be reached in May 2025.
900 000 Noir are allocated to the dev fund by adding 30 Noir/block for the first 30 000 blocks, which is about 1 ½ month.
The block reward will be changed in order to have a constant inflation of 2% per year, that corresponds to 2.25 Noir/block.
The block reward structure will stay the same: 65% masternodes, 35% miners. No further rewards will go to the dev fund.
Pros:
While max supply is increased only by less than 10%, it is possible to add 900 000 Noir to the dev fund.
The max supply will be reached in May 2025 and the block reward structure will stay the same (65% masternodes, 35% miners).
Cons:
The potential issue with this scenario is that the dev fund might be not sufficient toto pay for continued development, marketing and listing Noir on different exchanges during the next few years.
Option C
In this scenario the max supply is increased about 40% to 30 500 000 Noir. Max supply will be reached in May 2030.
2 500 000 Noir will be allocated to dev fund by adding 10 Noir/block for the first 30 000 blocks, lasting about 1 ½ month (300 000 Noir) plus 20% of each block reward after that will go to the dev fund.
The block reward will be changed in order to have a constant inflation of 3% per year, that corresponds to 4.40 Noir/block.
The new block reward structure will be: 20% dev fund, 50% masternodes, 30% miners.
Pros:
The biggest advantages of this scenario are:
1. Max supply will be reached in May 2030
2. A big dev fund will be generated, 2 500 000 Noir
Cons:
The supply would be increased by 40%.
Option D
In this scenario there is no cap at all. The coin will have a constant (fixed to the current max supply) inflation of 2%, that corresponds to 2.0 Noir/block.
The dev fund will be generated by adding 20 Noir/block for the first 30 000 blocks, that means about 1 ½ month (600 000 Noir), after that 20% of each block reward will go to the dev fund.
The block reward will be changed in order to have a constant inflation of 2% per year, that corresponds to 2.0 Noir/block. This means that every year only 420 000 Noir will be added to the supply.
The new block reward structure will be: 20% dev fund, 50% masternodes, 30% miners.
Pros:
The biggest advantages of this scenarios are:
1. By removing the cap, we will not have to face the max supply issue anymore and keeping a low inflation Noir will have lower supply then many competitors over the next decades
2. Initial dev fund of 600 000 Noir + 20% of block reward forever
Cons:
No more cap, thus Noir will no longer be what people call a low cap coin.
If you have any further questions, please reach out to us on Discord (https://discordapp.com/invite/J3qquSz), Twitter (https://twitter.com/noircoin) or via mail (team@noirofficial.org).
HAPPY VOTING!
