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Start of Freeos Democracy — Vote on the Locking Threshold

Some surprising, exciting and unexpected developments on the Freeos front.

We’re introducing a first step in the Freeos democratic system a little earlier than we had originally intended — introducing the vote on the locking threshold.

Just a reminder, the locking threshold is intended to help protect the price of FREEOS. Imagine if Bitcoin had that?!

You’ll have seen from reading our articles, and spending time in our community channels that we needed to hook up price oracles to make the locking threshold work.

While doing the work on building out the price oracles, we decided to also include the ability to vote on the locking threshold. Thus bringing the very first democratic feature to Freeos — even before the Governance Phase is underway.

How Your Vote Can Protect The Freeos Economy and FREEOS Token Price

Unlike the upcoming Governance Phase, the AirClaim has no built-in conditions to require a vote prior to claiming so this vote is purely optional — but can be a great feature for those in the Freeos community who would like to attempt to protect the price.

Let’s dig into how to vote, and how this feature — in tandem with the community vote — may have some early protections on the FREEOS token price.

Preview of the new voting feature.

As mentioned in our Tokenomics article — Part 2, the Locking Threshold can be thought of as a “line in the sand” where the community starts to hold (HODL) a portion of their weekly earned POINTs — preventing some POINTs from being minted into FREEOS tokens that might be sold.

You can almost think of it as a vote to HODL at a certain point (pun semi-intended).

This restricts supply of the FREEOS tokens entering the open market, which may have a positive — or at least protective — effect on the price.

Now the locking threshold vote is designed merely as a protective system. It doesn’t magically create any demand for the FREEOS token — which is what typically improves the price.

Building Liquidity

Demand for FREEOS may come through various use cases, like the NFT auctions, and other future products & services. Or it may come in the form of the current AirClaim holding requirements, which will be needed by any newcomers to the AirClaim (which we expect once we ease up staking requirements for KYC’d participants as our very next focus).

Once the Governance Phase kicks in, the Mint Fee will be an additional, protocol-level source of demand for the FREEOS token.

Benefiting from Volatility

If savvy traders start to look into the Freeos system to see the potential for dynamic periods of supply and demand, such traders may wish to ride these levels of potential fluctuations and purchase FREEOS tokens in the hope that the community has the tools, and alignment to improve the token price over time.

These traders may also put some buying pressure on the FREEOS tokens, if such traders start to appear, bringing volume and liquidity.

Who knows? Maybe the community will vote in a way that encourages a bit of volatility just to attract traders? Maybe traders and the community will be trying to outwit each other? Lots of interesting dynamics and interplay could develop just from a simple locking threshold vote.

How the Voting Works

Voting can be done once a week, to the Vote page and moving the slider to the amount you want as the locking threshold.

Voting can be done once a week. Visit the vote page and move the slider to the amount you want as the lockhing threshold.

Alternatively, you can manually enter your amount if the slider isn’t giving you enough precision.

Once you have decided on the amount you want the Locking Threshold to be, then press “Submit Vote”. Sign your transaction with the WebAuth wallet and you’re good to go.

Next week, come back for your claim and vote again to have your say in the next week’s locking threshold.

Smart-Contract Rules

Of course, there’s some rules under the hood if you’d like to know what makes the system work.

  1. The minimum price anyone can vote on is $0.0167. This is the base locking threshold in the system that represents the lowest value it can be.
  2. If the current price is less than $0.0167 then the maximum upper limit (that can be voted on) is double the base locking threshold price of $0.0167 (eg. $0.0334)
  3. If the current price is greater or equal to $0.0167, then the maximum upper limit is simply double the current price. For example, if the current price of 1 FREEOS is $0.03, then the maximum locking threshold that can be voted on would be $0.06.
  4. 1 vote per week, per participant.
  5. All of the votes are averaged (the mean) to represent the new locking threshold for the new week (iteration).

TL;DR: The max you can vote weekly is double the current price in good times, and $0.0334 in bad times.

Simple Vote, Many Scenarios

So we established that voting on the locking threshold is like the community drawing a line in the sand where they are agreeing to be willing to have some of their earned POINTs temporarily locked.

It is almost like the community is having a say on where they think the fair value of FREEOS should be.

From this simple vote, there are many ways the situation can develop as illustrated in these theoretical examples.

NOTE: None of these examples are advice on how to vote, or on whether these scenarios would play out. Definitely not Financial Advice!

Example #1 — Sell Pressure: Does the community feel there’s too much sell-pressure at the moment? That there’s too many people undercutting the FREEOS token value by selling at a low price, therefore undermining everyone else?

Perhaps this is a case for voting the locking threshold higher. Then the low price people are selling at will put a throttle on how many new FREEOS tokens can be minted and sold in the next weeks — drying up the supply.

Example #2 — Trading Buy Pressure: Does the community believe that voting on a higher locking threshold would signal to traders that FREEOS should be valued higher? But they want to allow traders the ability to load up at earlier prices?

Perhaps the community will slowly raise the locking threshold each week by degrees, allowing savvy traders to purchase early when the supply is not so restricted, knowing that each week the supply will become more restricted. This pattern gives traders something to rely upon, helping them feel confident about their FREEOS tokens purchased.

Example #3 — Claimant Control: The community realises that there could be many more people coming into the system due to staking requirements being lowered for KYC’d participants. But these new people will need a bit of FREEOS to make up for lost weeks to reach the current holding requirements.

Perhaps the community will maximise the locking threshold to be protective of the newcomers who might not fully understand how the system works. But the community might also mint some FREEOS tokens this week, while the locking threshold is low, as a way to sell to these newcomers.

Example #4 — Minting Spree: The community establishes a healthy price, and wants to sell to make some earnings. They have become more confident in their abilities to steward the economy, and may even want to buy back if their sell causes the price to dip far below the locking threshold.

Perhaps the community will vote for a lower locking threshold for a few weeks to ensure the current price is above the locking threshold to unlock POINTs in order to mint the POINTs into FREEOS tokens to sell. If the price drops, then perhaps some of the community will repurchase FREEOS at the lower price point, feeling confident that they may raise the price back up again over time using the strategies they learned along the way.

Example #5 — Market Maturation: The community wishes to protect the early Freeos economy for quite some time while exchanges, markets, use-cases and additional features emerge.

Perhaps the community would consistently vote to keep the locking threshold the highest it could be and only start easing off when it is clear the economy and market is maturing to a point where the brakes can be released.

Ready to Experiment?

Of course, what will happen will likely play out differently, although maybe similar patterns may be seen over time. The possibilities exist, however, for the community to create all sorts of interesting dynamics just from having a say in the locking threshold.

Think of what people can accomplish when working in unison — like the story of WallStreetBets who defied the entire financial industry. Whether agreeing with, or disagreeing with their principles, this group showed that a group acting in unison for a common financial goal could achieve what they were aiming for.

This group accomplished this with just simple trading tools — similar tools that are available to any cryptocurrency — FREEOS included. But now there are even more tools available. What might be accomplished over time?

As Freeos matures, more tools will be available, with more nuance. More markets, and liquidity will appear as well. The participants of Freeos will become more familiar with the system and the results — having tried multiple iterations in a variety of market conditions.

Bigger than Bitcoin?

Believing in Freeos is believing in the power of people to accomplish great things when their incentives are aligned and the base systems are fair.

Just like with Bitcoin, the early days took enormous belief. But given time, more people joined, milestones were achieved, and eventually results that made Bitcoin a household name. The small ripples became a tsunami.

Enjoy these early days of the Freeos Movement. And let’s turn these small early waves into a raging tsunami that shows people can manage their own economy for their own best interests.

When to expect this feature? We will be rolling it out to start with Week 12 of the AirClaim, which starts at UTC 0:00. Check the countdown in the Freeos dApp for the most precise timing.

Best way to get the most timely announcements is through our official Freeos Announcements channel in Telegram. JOIN HERE!

Stay tuned for additional articles in this series where we will cover more of the many features and tokenomics of the Freeos Economic System.

In the meanwhile, feel free to ask any questions in our Telegram and Discord channels



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