Should we approve the Island Upside proposal?

Overview:

• A new “ISLAND” KPI token will be created.
• 1x ISLAND token may be redeemed for up to 5,000 EPOCH tokens, depending on the KPI conversion price (EPOCH 30 day moving average price) at the time of the KPI expiry date (December 1st 2024).
• 50m EPOCH tokens will be minted to be used as collateral of ISLAND KPI tokens.
• 10k ISLAND tokens will be minted, each ISLAND redeemable for up to 5k EPOCH each.

KPI Conversion Price → redeemable EPOCH

• Less than $0.10 → 0 redeemable EPOCH
• $0.10 → 500k redeemable EPOCH (50 EPOCH per ISLAND)
• $0.15 → 750k redeemable EPOCH (75 EPOCH per ISLAND)
• $1.00 → 5m redeemable EPOCH (500 EPOCH per ISLAND)
• $2.00 → 10m redeemable EPOCH (1k EPOCH per ISLAND)
• $5.00 → 25m redeemable EPOCH (2.5k EPOCH per ISLAND)
• $9.00 → 45m redeemable EPOCH (4.5k EPOCH per ISLAND)
• $10.00+ → 50m redeemable EPOCH (5k EPOCH per ISLAND)

Island Value Calculator that simulates math outlined above: https://docs.google.com/spreadsheets/d/11jf7Wuzki1JJ5YdWA4l8C-E4mRNLRh1nE1BXOA0BgBI

Burned EPOCH:

• If KPI conversion price is less than $10, then less than 50m will be redeemable. The amount less than 50m will be burned. Example: If price is $2 then 10m is redeemable and 40m will be burned.

How to earn ISLAND:

• Stakers of USDC and ETH that generate yield for funding streams will be the primary way to earn ISLAND and will be how most or all of the ISLAND will be distributed.
• The following methods may or may not also qualify for some amounts of ISLAND: EPOCH LPs, vEPOCH holders, referral incentives, and marketing campaigns.
• Moai Labs will have full discretion on the final amounts and rates and methods to earn ISLAND. For example, the earlier you stake, the more ISLAND you could earn, but these multipliers have not been finalized yet. Moai Labs will work closely with the Epoch Island community on discord and be giving regular updates and asking for feedback in Friday Assemblies.

Vesting

• This proposal does not have vesting as a requirement of the redemption process of ISLAND tokens converting to EPOCH.
• Moai Labs is currently working with UMA to determine what choices are available to make vesting possible. An amendment to this proposal might be made in the future that would outline how to enforce vesting for ISLAND tokens. For efficiency of time and resources, Moai Labs will devote more effort to this issue if/after this proposal passes.

If this proposal is approved, follow up proposals will be made to facilitate the minting of the 50m tokens, anticipated to be in batches of 5m per week over 10 weeks.

As always, Islanders can create new proposals to be amendments to any proposal such as to change any part of this proposal’s math, terms, dates, or to cancel or end the ISLAND campaign early.

As always, we hope and expect to see questions on Discord about this proposal.