Proposed WPS Fiat to EOS Conversion
This is in consideration for all proposals that have been tendered to the Emergency Committee
This proposal is the WPS working group’s response to the many questions we have received regarding the volatility of the EOS price. Any and all questions connected to this proposal should be directed to the Telegram WPS channel.
Concern: The volatility of the price of EOS in reference to fiat currencies (namely the USD) raises a flag for whether or not the funding of a project will be sufficient to see it through to proper completion, or conversely, cause the community to overpay for a good.
Remedy: All proposals will be made in USD. For the sake of converting a proposer’s native currency into USD, the conversion rate listed on https://xe.com will be used. To then convert the USD amount into EOS, https://coinmarketcap.com should be used to obtain an aggregated price-feed from the multitude of exchanges. A proposal should include the amount of EOS as calculated at the moment where a proposal is put forth to the community for consideration. It should also include a table which indicates the amount of EOS needed should the price fall 25%, 10%, as well as should the price increase 10%, and 25% (just for reference).
If approved, a Proposal’s team shall communicate and provide all receipts of exchange of EOS into Fiat to the Emergency Committee members. From there, the amount of Fiat can be “deducted” off of their total requested. Upon subsequent rounds of funding (if tranches of funding were part of the proposal) shall be adjusted (either up or down) as needed to keep a project’s funding on target. At the completion of a projects life cycle, any excess tokens which they may be in custody of shall be transferred back to the Emergency Committee.
All transfers of EOS paid out to a member working on behalf of a proposal who wishes to receive their payment in EOS rather than Fiat shall be deemed to be exchanged at the rate as provided by https://coinmarketcap.com at 00:00:00 UTC of the day following transfer. All payments made in this manner shall be first announced at least 7 days prior to being executed to avoid any manipulation by those involved.
I will include 3 scenarios to illustrate how this would all occur.
Worker Proposal X has requested 100,000 USD. At the time the proposal was presented to the community, the price of EOS was 10 USD, so the request was for 10,000 EOS tokens, to be paid out in 4 tranches of 25,000 USD (or 2,500 EOS) each. The proposal will include a table as such for reference:
The value EOS that has been received will be calculated upon the exchange of the tokens into fiat currency through an exchange (as evidenced by logs provided to the Emergency Committee).
Scenario 1: EOS Price Falls
At the date of the four tranche payments the price of EOS is as follows:
Tranche1: 9.75 USD
Tranche2: 9 USD
Tranche3: 9.50 USD
Tranche4: 8.25 USD
Payments would be as follows:
Tranche1: (25,000 / 9.75) = 2,564.1 EOS
Tranche2: (25,000 / 9) = 2,777.7 EOS
Tranche3: (25,000 / 9.50) = 2,631.5 EOS
Tranche4: (25,000 / 8.25) = 3,030.3 EOS
Total: 11,003.6 EOS
Scenario 2: EOS Price Rises
At the date of the four tranche payments the price of EOS is as follows:
Tranche1: 10.75 USD
Tranche2: 12 USD
Tranche3: 10 USD
Tranche4: 11.5 USD
Payments would be as follows:
Tranche1: (25,000 / 10.75) = 2,325.5 EOS
Tranche2: (25,000 / 12) = 2,083.3 EOS
Tranche3: (25,000 / 10) = 2,500 EOS
Tranche4: (25,000 / 11.5) = 2,173.9 EOS
Total: 9,082.7 EOS
Scenario 3: EOS Price Fluctuates and Team Does Not Immediately Exchange Into Fiat
At the date of the four tranche payments the price of EOS is as follows:
Tranche1: 10.75 USD
Tranche2: 11 USD ← In this tranche, the team only cashed out their tokens two weeks later, and the price at that time was 12 USD
Tranche3: 9 USD
Tranche4: 10.75 USD
Payments would be as follows:
Tranche1: (25,000 / 10.75) = 2,325.5 EOS
Tranche2: (25,000 / 11) = 2,272.7 EOS but since they cashed out at 12 USD, they “should have” only received 2,083.3 EOS (meaning they have a surplus of 189.4 EOS)
Tranche3: (25,000 / 9) = 2,777.7 EOS minus their surplus of 189.4 EOS for a transfer of 2,588.3 EOS
Tranche4: (25,000 / 10.75) = 2,325.5 EOS
Total: 9,512 EOS
