Quick disclaimer before we dive in that may not have been clear in the video: Rewatching this video back, we believe the term “toll” or “fee” represents what is actually happening here. The Citizen is not paying anything out of pocket. A more accurate depiction of “Toll” is as a subsidized and shared revenue stream that is generated in addition to XIO Rewards.
Today we have a very important topic and question that is sure to impact the long term sustainability of the XIO Network and token. As always, we would love your feedback and input on the subject. If you would like to earn XIO Social credits on this topic, you can comment here on Youtube, on Twitter, or in our new official XSI forum: https://social.xio.network/t/xio-trea…
However, one unique characteristic of the Treasury: The only way to redeem tokens from the XIO Treasury is to burn XIO Tokens.
This model ensures that the XIO Token has a diversified and foundational basket of underlying collateral. Additionally, if the assets within the XIO Treasury appreciate more than the XIO Token itself, the XIO token is likely to offset newly minted tokens and become deflationary in nature.
The only way the XIO Treasury is able to acquire assets is through the XIO Toll. The XIO Toll is reward taken by the XIO Treasury when new altcoins are acquired. For example, if the XIO Toll percentage was at 50%:
1) User stakes 100 XIO for 365 Days to earn LINK
2) 10 New XIO Tokens are generated and swapped for 5 LINK
3) 2.5 LINK would go to the Citizen
4) 2.5 LINK would be shared by the XIO Treasury
There are many pros and many cons to a low or high XIO Toll. Some of the ones we have identified so far (need your help dissecting and challenging these assumptions) are:
Pros of Low XIO Toll
- Higher potential interest per Citizen
- Staking decisions only affect the staker
Cons of Low XIO Toll
- XIO Treasury is not funded
- Every Citizen for themselves attitude
- Less Sustainable Token Model
Pros of High XIO Toll
- Sustainable and Increasing XIO Treasury revenue
- Collective staking mindset
Cons of High XIO Toll
- No immediate gratification rewards
- Group decisions impact the individual
- Less individual stake interest per Citizen
This brings us to our #XIOsocial question: What percentage Toll should the XIO Treasury take at launch?
2:30: What is the XIO Treasury?
3:55: What is the formula to calculate XIO Treasury rewards?
4:44: What is the goal of the XIO Treasury?
5:50: What is the XIO Toll?
6:42: What are XIO Public Portals?
9:18: #XIOsocial: What percentage should the XIO Treasury take as a Toll?
9:45: Pros and Cons of 0% XIO Toll
11:54: Pros and Cons of a 100% XIO Toll
14:45 Launching the official forum for XIO Social!