Currently there are two GAB’s under review.
- Grant of SWM tokens to SWARM foundation for 2019H2 Budget
- SWM network policy - modified issuance staking by Swarm council exception.
The staking model remains as previously approved, but swarm council have the right to allow exceptions to aide with the onboarding of clients to the network.
In the instances where a exception is agreed, the reduction from the network policy staking model will be absorbed by the private entity who completed/provided the onboarding process.
A company wants to complete a tokenisation with a value of $100,000,000.00. The network staking policy states this tokenisation process must lock up $100,000.00 in SWM.
If as part of the issuers engagement/proposal they require/negotiate a reduced stake lock up, and this exception is approved by the swarm council, this reduction in the SWM lockup from the network staking policy would be borne by the entity that provided the onboarding process.
This proposal and it’s impact On the current GAB’s
- The cost for works complete to date by Swarm Capital of $241,000.00 could be used by Swarm capital as a credit against a future reduction/exception in the staking model, if necessary and approved by the council.
In the example of a $100,000,000.00 tokenisation.
If swarm council agrees to a exception to the staking model of $50,000.00, as opposed to $100,000.00 as per the network policy. This would mean Swarm foundation have reduced the liability to Swarm Capital from $241,000.00 to $191,000.00. ($50,000.00 staking exception)
This process would allow Swarm Capital to progress with their dealings via council approval without reducing the utility of the swarm token or changing the network policy.
The exceptions process could be maintained on a trial basis with Swarm foundation having the benefit of reducing the liability owed to Swarm Capital, access to use future Swarm Capital developments or offset against other such benefits as deemed fit by the council and or GAB’s.
This would be a trial process which would incentivise all parties to maintain the existing network policy. This trial would also work towards finding a staking balance which may require a change in the network staking policy due to market dynamics, which can’t currently be fully assessed.