Swarm Network Policy for Issuance Staking


#1

Ballot Title:
Swarm Network Policy for Issuance Staking

Short Description:
This ballot is to define a first version of a Swarm Network Policy for Issuance Staking.

Long Description:
One of the key participants of the Swarm Network are those that use the Platform to issue digital securities. It is therefore in the Swarm network’s interest to create mechanisms, by which these beneficiaries of the network become vested and interested parties in it.

To support the Swarm Network and show commitment to the Swarm Platform, issuers of tokens on Swarm are required to stake an amount of SWM tokens against the value they tokenize on it. This has to happen, before the Platform triggers the minting and distribution of the corresponding SRC20 tokens. The staking requirement applies to all uses of the Swarm infrastructure, independent of whether the tokens are used for fundraising, existing assets, or even utility tokens. Staked tokens are ‘locked’ until the corresponding SRC20 tokens are no longer exist. They are unlocked whenever outstanding SRC20 tokens are redeemed and burned - up to the full staked amount. The material requirements of this policy are further described https://docs.swarm.fund/SwarmNetworkPolicy-IssuanceStaking.pdf

Currently, the SWM staking value is determined via smart contract at the moment when the SRC20 tokens are issued. These stakes are held in a wallet controlled by the token issuer and will be released when the SRC20 tokens are burned/redeemed. We suggest to include in this ballot, to permit the Swarm Council to change this “snapshot model” to a “watermark” model, where depending on the changing values of SWM and the SRC20’s Net Asset Values, the staking value can be continuously recalculated, which would then allow the token issuer adjust the staking amount accordingly on an ongoing basis.

Voting “yes” means supporting the Swarm Network Policy for Issuance Staking.
Voting “no” means not supporting the Swarm Network Policy for Issuance Staking.

The quorum is 21,356,402.44 SWM, equivalent to 25% of the SWM tokens in circulation when launching the ballot.

Vote here: https://voting.swarm.fund/

Discussion of this ballot should proceed below.


#2

One question I have had about issuer staking is whether the percentages apply to amounts in between the milestone USD amounts in the table. That is, if I am issuing $30M of tokens, am I staking based on $30M or on the $15M milestone in the table?


#3

good question, my hope would be based on $30m. In order to avoid confusion, the table may need to be adjusted, any actuaries out there?

one question I have is will there be a public address supporting the stake or is this something the masternodes will validate? Is there a way to validate the staking for the ART token?


#4

The main parameter is the stake % based on NAV, so in your example $30M * 0.40% = $120K that needs to be staked in SWM tokens

The staking for issuers will work similarly like the staking for masternodes, where the wallet signals its stake. But the dev team is working on the details of the smart contracts as we speak and will publish the details along the way.