Request for Comment: AVT Token Mechanics Evolution

The landscape of the Aventus Network (AvN) is evolving. In light of this, this document shall serve as a starting point for the Aventus Community to restructure the Aventus Token (AVT) mechanics. This initiative aims to enhance the utility, scalability and user engagement of the AvN ecosystem.

Drawing inspiration from successful implementations in ecosystems such as Ethereum and Polkadot, the proposal focuses on aligning AVT mechanics with the AvN’s long-term vision of being key in enterprise adoption of Web3.

Proposal Overview

The AVT mechanics evolution focuses on the following key areas:

• Removal of AVT Supply Inflation: The continuous inflation model, which was previously introduced following a successful AVT community vote, as part of the AvN joining the Polkadot ecosystem as a parachain, will be retired. No further token supply inflation shall occur, except for on a case-by-case basis determined by community governance proposals.
• AVT Transaction Burn Mechanism: A token burn mechanism, where every transaction must burn the equivalent of 0.01 USD in AVT, will be implemented. This acts as a spam filter for the network, making denial of service attacks economically infeasible. This also will lead to the removal of staking to earn transaction fees.
• Community Governance Proposals: Introducing community proposals will further democratize decision making processes, allowing token holders to propose AvN upgrades, changes and distribution of community treasury. Any proposal will require staking 100k AVT before submission. Staked AVT shall be restricted from transfer for one year following a submitted proposal that was approved by vote. This ensures a long term stake in the AvN, to see through the implications of the passed proposal.
• Transaction Processor Payments: Each transaction processor (of which there are 10) will be paid 1,000 USD in AVT per month to cover the energy cost of providing the service to the AvN. This will be paid directly from the community treasury. This amount can be amended in future as needed by community governance proposals.
• Community Management Payments: The community manager will be paid 1,000 USD in AVT per month to cover the cost of providing the service to the AvN. This will be paid directly from the community treasury. This amount can be amended in future as needed by community governance proposals.

Expected Outcomes

• Increased Network Security: Adequately incentivizing AvN transaction processors is expected to enhance network security and reduce the risk of malicious attacks, whilst remaining fully decentralized.
• Enhanced User Engagement: The proposed changes aim to increase user participation in AvN governance, fostering a more vibrant and engaged community, with enhanced decision making drawing on the intelligence of those with a stake in the outcome of the AvN.
• Improved Network Utility: The introduction of transaction fee burn is expected to significantly enhance the network’s utility for all users, by creating a simplified, clear predictable pricing model for enterprises and value distribution from enterprise usage across the AvN.

Implementation Plan

• Community Feedback and Revision: Solicit feedback from the community on the proposed changes and revise the proposal based on input received.
• Community Vote on the Refined Proposal: Once all feedback is taken on board a final version of this document will be presented to the AVT community for vote, approved or denied.
• Technical Development and Testing: Develop the necessary technical infrastructure to support the proposed changes and conduct thorough testing to ensure stability and security.
• Gradual Rollout: Implement the changes in phases, closely monitoring the impact on the network and making adjustments as necessary.
• Ongoing Evaluation and Adjustment: Continuously evaluate the effectiveness of the changes and remain open to further adjustments based on community feedback and network performance.

Constraints

When considering adjustments to the AVT model, it’s crucial to recognize and navigate the constraints that inherently come with such evolutions. For any feedback, please keep in mind the key constraints when it comes to the evolution of any token model:

Regulatory Constraints

• Compliance with Local and International Laws: Changes in token mechanics must comply with the regulatory frameworks of jurisdictions in which the tokens are distributed or traded. This includes securities laws, anti-money laundering (AML) regulations and Know Your Customer (KYC) requirements.
• Regulatory Approval: Certain changes, especially those affecting token classification (e.g., utility vs. security tokens), may require approval from regulatory bodies or might trigger re-evaluation of the token’s legal status.

Exchange Constraints

• Listing Requirements: Major cryptocurrency exchanges have specific criteria for listing tokens, which may include aspects of the token’s utility, governance and supply mechanisms. Changes in the token model must ensure continued compliance with these criteria to maintain or achieve listings.
• Integration with Exchange Platforms: Modifications in the token mechanics, such as changing the total supply, may require technical integration efforts from exchanges. This could become impossible to implement within a reasonable timeframe based on a third party exchange’s priorities and responsiveness.

Conclusion

This proposal outlines a strategic approach to restructuring AVT mechanics to better serve the AvN’s users and community. By enhancing the utility, scalability and security of the AvN, the goal is to position the AvN for long-term success and sustainability.

The community is invited to engage in a constructive dialogue regarding this proposal, as your feedback is invaluable in shaping the future of the AvN.