Recently, the development team of Freeos minted an allotment of POINTs into FREEOS to support development and the creation of liquidity pairs.
This was put on the Alcor Exchange at a sell order that was intentionally placed at a higher price than the previous weekly average—as to not undercut the community. The intention is for it to be used for development funds for the project — if, and only if there is demand for it. Some of the sales may also be used for supporting liquidity pairs, to provide the FREEOS token with a healthy, deeper market—benefiting all.
If the FREEOS is not sold, it will be withdrawn and used to support trading pairs on exchanges like Proton Swap.
To communicate clearly, and to be as transparent as possible, and to remind the Freeos community how the FreeDAO Foundation, and development team is compensated with FREEOS tokens, we’ve copied and pasted the following from our original AirClaim article, written in July, 2021.
- It (the AirClaim) includes the mechanism to mint POINTs for FreeDAO for a sustainable development revenue stream. This is important to reach the fully featured system and for FreeDAO to continue creating tools of collaboration and freedom.
On the last point, it is good to set the stage and be transparent on how FreeDAO receives its revenues, both in the AirClaim Phase and the Governance Phase.
To help ensure FreeDAO has revenue to sustain development in the early stage of the project, a decreasing multiplier is set in the AirClaim Phase.
The more participants join, the smaller the multiplier becomes — by thresholds — until it reaches the +7% of the mint that will be firmly set in the Governance Phase and ongoing.
NOTE: This is written “+7%”, because it represents calculating 7% of the existing mint, then minting this amount in addition to the original mint. This means it is not reducing the participants’ expected amount as FreeDAO is receiving an additional mint separately.
The multiplier exists to help ensure that, even if the AirClaim’s participant numbers are fewer than expected, FreeDAO has some FREEOS tokens it can use for funding (any sold will be through a slow release unlocking contract to further protect the FREEOS price).
During the AirClaim, the multiplier thresholds are as follows:
Once the AirClaim is over, no matter what the final threshold and multipliers were last set in the AirClaim, the Governance dApp multiplier immediately becomes fixed at +7% forevermore.
These figures, shown in the table, were the result of a careful balancing act of finding thresholds and multipliers that gave FreeDAO a modest, yet scrappy, development budget while being conscious and careful of the early circulating supply.
The intent of this is to provide a sustainable budget that has a low likelihood of starving the project. We are conscious of the problems that can result from projects being spoiled from ICO riches, as well as projects struggling due to underfunding. These figures have been balanced to try to walk a middle ground that keeps us fighting fresh — or “hungry and foolish”.
These funds fuel the further development of the Freeos Economic System — and provides funding for FreeDAO to launch fully as a pure DAO, with a unique governance structure (that we’ve covered in a 3-part series starting here).
