Core proposal: product revenue utilization

The vote

In just 6 months, the Alchemist ecosystem has incubated several core products. MistX has already started generating revenue, and other/future products may also generate significant revenues.

Similar to the $mist inflation, 50% of the revenue from these products will be deposited directly into the Aludel to reward LPs within the ecosystem. This vote is to determine how the rest of these revenues are used.

The 3 voting options for utilization of product revenues are as follows:

Option A:

• 50% to Aludel rewards
• 50% profit share for active team members

Option B:

• 50% to Aludel rewards
• 40% profit share for active team members
• 10% to multisig

Option C:

• 50% to Aludel rewards
• 30% profit share for active team members
• 20% to multisig

Motivation

Inflation is currently set to 1% every 2 weeks, which is distributed as follows:

• 50% to Aludel reward pool
• 25% to $MIST community multisig
• 25% to $MIST treasury

The community multisig portion of inflation has so far funded the development of all current core products, as well as the building out of the ecosystem (community rewards, marketing, design, operations, etc). Future products will likely be funded in a similar manner with the aim of teams becoming self-reliant rather than depending on inflation to fund growth and operating costs.

Although the inflation rate is configurable, there is likely little appetite to reduce it in the foreseeable future due to its huge success in growing the community and attracting founder-level talent to build within the ecosystem. Incentivizing founders to build products that feed value back into the Aludel is critical for generating ongoing value to $mist LPs.

As a community-driven project, it is up to the $mist liquidity providers to determine the preferred structure. However, there are some important points to consider regarding the different options:

• Diverting some product revenues back to the multisig reduces the reliance on inflation and provides a flow-on effect for the funds to be utilized to develop more products and build out the ecosystem. However, it also lessens the multisig’s economic interest in MIST which may have longer-term incentive implications.
• Revenue distributed back to the multisig can be used to build a stablecoin fund without selling inflation-derived $mist from treasury/multisig
• If product teams are to retain the full 50% of product revenue, Alchemist is far more likely to attract and retain founder-level talent and to incentivize these founders to increase the profitability of their products. This in turn is likely to provide more value to the ecosystem and in turn higher revenues to be deposited into the aludel rewards program.
• A simpler revenue utilization structure is more conducive to scaling the size of the Alchemist ecosystem by reducing the operations and coordination overhead.

Voting Mechanics

Every crucible holder can vote once for either option A, B, or C.

Each vote will be weighted by the amount of subscribed LP.

The vote will run for 11 days and conclude at 12:00 UTC on September 12

As a core proposal, the decision of the community will be binding. This will help lead the way to incentivize future products to be incubated in the Alchemist ecosystem. We thank our community for their guidance and for joining us in the ongoing voyage to find the philosopher’s stone.