0% EPOCH Inflation: Moai Labs 2024 Partnership Proposal

The following is a Partnership Proposal from Moai Labs to Epoch Island. If approved, this agreement would aim to:

• Reduce EPOCH Inflation to 0%
• Reduce Epoch Island Development Expenses to $0
• Generate Aligned Revenue Incentives for Epoch Island DAO
• Secure Moai Labs Development Efforts through 2024

The remainder of the Proposal is outlined as follows:

1/ Who is Moai Labs? 2/ Context of Partnership Proposal 3/ Benefits for EPOCH, ISLAND, and Islanders 4/ Structure of Partnership Proposal 5/ Additional Insight and Perspective 6/ Closing Thoughts

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1/ Who is Moai Labs?

Moai Labs is an independent crypto development agency. Building together since 2019, Moai Labs has contributed to or advised multiple projects across various sectors of DeFi, NFTs, and governance. The team currently consists of:

• Zachary Dash (CEO/BD)
• Umar (CTO/Solidity/Backend)
• Steve (COO/Strategy/Treasury)
• Ben (UIUX/Frontend)
• Hwedini (Strategy/Content Editor)

Contributing to the development of Epoch Island since day one, Moai Labs has helped Epoch Island:

• Develop the foundational governance stack including Snapshot, oSnap, Safe, and vEPOCH integrations
• Recruit 35+ of the industry’s top investors, builders, and creators to join as Epoch Elders
• Develop the ITO Protocol that was used to facilitate the world’s first Initial Time Offering (selling out in 33 minutes) and raised funds for Epoch Island DAO treasury
• Develop the USDC Funding Stream that generated over $100k yield staked in first 24 hours
• Moderated and maintained Epoch Island social media channels including Twitter, Discord, Telegram, and Youtube
• Create and maintain the Epoch Island website
• Many, many more

As bullish believers in all things Epoch Island, Moai Labs has worked exclusively for EPOCH tokens and continues to acquire/accumulate tokens where possible.

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**2/ Context of Partnership Proposal **

To structure this proposal, we focused on finding a solution that offered both Islanders and Moai Labs the outcomes they care about most.

Here’s a recap of our analysis and observations:

Highest priorities of Islanders include:

• Lower the EPOCH inflation or emissions, especially at our current low market cap
• Use KPI and outcome-based compensation structure for Moai Labs (or anyone that makes proposals in the future)
• Attempt to increase our liquid budget (i.e. non-EPOCH denominated treasury) to be used for marketing-related initiatives and campaigns

As Moai Labs and our team members are large EPOCH holders ourselves, deeply incentivized by the success of Epoch Island, we 100% agree with the above goals and objectives. This has never been the question; it is only the path to achieving these objectives. In addition, this proposal has given Moai Labs the chance to take a step back and truly evaluate what our priorities are. It was a good and important time of reflection we would like to transparently share with you, so our efforts and motivations are never in question.

Highest priorities of Moai Labs include:

1. A $30k/month (“Moai Labs Baseline Compensation Runway”). Important to note, this compensation is the minimum amount of capital necessary to retain our current team (at below-market average compensation levels) and a break-even amount of capital. There’s no profit being made here. Only keeping the lights on.

2. Working in a positive environment with cool people where we feel our efforts are appreciated and valued. The number one reason employees leave companies is not because of compensation but because they do not feel appreciated. Moai Labs and the humans behind it are no different.

3. Building a badass product that pushes the boundaries of what’s possible, solves a real problem for real people, delights the humans who use it, and takes the crypto industry by storm.

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**3/ Benefits for Epoch Islander and EPOCH/ISLAND holders **

If the following Partnership Proposal is agreed upon, the following compromise and outcomes will be achieved.

A) Reduce Short/Medium-term Inflation to 0%

Moai Labs has dropped its compensation request for past work during Q2 of 2024 in the amount of 4.5M newly minted EPOCH tokens. This means we will see zero net new EPOCH tokens entering the market to cover Moai Labs 2024 development expenses.

B) KPI-Based Compensation

Instead, Moai Labs would be 100% compensated by the KPI and success of the EPOCH token hitting a 20X price increase. More on this later in the proposal.

C) ISLAND + Funding Streams + Dapp In-Motion

Moai Labs would continue to manage ISLAND, Funding Streams, our website, and the Dapp.

D) Budget Unlocked for Additional Marketing/Growth

By lowering development costs to $0, Epoch Islanders should have more flexibility to approve a budget specifically for marketing and growth-related campaigns.

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**4/ Structure of Partnership Proposal **

High Level: Moai Labs to front all costs and expenditures to focus on building a line of independent revenue-generating products. In return, Moai Labs to provide Epoch Island with 50% of any revenue generated after Moai Labs Baseline Compensation Runway is met.

Epoch Island to Receive:

• 50% of all revenue generated from all of Moai Labs developed products.
• Revenue is paid to Epoch Island after the Moai Labs Baseline Compensation Runway is met ($30,000/month). Grants and donations will be excluded from this calculation.
• Moai Labs to continuously manage Epoch Island Funding Streams Dapp
• Moai Labs to continuously manage the Epoch Island Website
• Moai Labs to continuously manage the facilitation of ISLAND tokens

Moai Labs to Receive:

• A KPI-based compensation of 4M EPOCH. These tokens will be unlocked if (and only if) EPOCH reaches a price of $0.25 (7-day moving average). The minted EPOCH tokens in this scenario would be vested over 90 days.
• Ability to utilize ISLAND to generate revenue, TVL, and activity for Moai Labs-built products and services (like Funding Streams).

If any of the items offered by Moai Labs are not honored, Epoch Island holds the right to void the 4M EPOCH KPI-based compensation. Conversely, Moai Labs retains the right to void the Partnership by renouncing its rights to the 4M EPOCH at any time. Revenue share will stop immediately if the partnership is voided.

This Partnership term will be valid until December 31st, 2024, and can be renewed upon the agreement of both parties.

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**5/ Additional Insights and Perspective **

Before responding, there are a few things we would like to encourage readers to consider.

50% Revenue Share

Before getting into a debate about what a “fair” revenue share is, remember Moai Labs is fronting 100% of the costs and expenditures for this. As such, Moai Labs is assuming 100% of the risk while giving up 50% of the potential rewards (i.e. revenue) to Epoch Island—resulting in a better risk-reward ratio for Epoch Island.

In practice, Moai Labs could very easily build out these products without offering any revenue share for Epoch Island. We are coming to this path forward because we believe in the mission, vision, and potential of Epoch Island.

For these reasons, 50% revenue share (after the $30k threshold is met) is the final and best offer we can justify for this partnership. It is worth noting, the first-choice proposal presented by Moai Labs was to direct 100% of all revenue to the Epoch Island Treasury. This was strongly rejected by the Islanders who responded.

$30k Threshold

Many people would likely agree, the success of Epoch Island is greatly dependent on Moai Labs.

Therefore, if Moai Labs can’t sustain itself, neither will Epoch Island. We hope this accurately explains why we have structured the Partnership Proposal in the way we have.

In this Partnership Proposal, as mentioned above Moai Labs is taking 100% of the financial risks. We must cover our baseline accordingly.

To Reiterate…

• Nothing is changing about the Epoch Island vision, mission, or token model
• Nothing is changing about EPOCH, ISLAND, or vEPOCH (except a lowering of inflation)
• This Partnership Proposal does not stop Epoch Island from pursuing additional streams of revenue or developments on other terms.
• This focus on revenue has always been in the roadmap and Pathway of Epoch Island.

Expectations

As always, there are tradeoffs in this Partnership Proposal and we want to get ahead of expectations.

Moai Labs will be less available on a daily/weekly basis. The only expectations of Moai Labs should be based on the services outlined above.

As of the start of Q2 2024, Moai Labs has not been compensated for any work of any kind. This means, all work as of April 1st 2024 and beyond is fully owned and operated by Moai Labs.

Energy usually spent on things like community updates, new product launches, social media content, and Dapp improvements may instead be focused on creating independent revenue-generating products.

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**6/ Closing Thoughts **

After much thought and reflection, we believe this Partnership Proposal can put Epoch Island into a stronger and more sustainable position in 2024 and beyond.

This agreement will allow Moai Labs to improve upon our skills to be better builders, communicators, and leaders for Epoch Island while reducing downward pressure and extend the runway as long as possible for both Moai Labs and Epoch Island.

If you have any questions or comments, please join the discussion on the Epoch Island discord server.