lewi.eth

TIP-4 - xESD Grant Proposal

Voting ended about 5 years agoSucceeded

Authors

@mjc716

Summary

xESD will be an ERC20 wrapper for the ESD DAO bonding process. Returns from DAO inflation will accrue to the value of the xESD token. xESD will be fully fungible and transferable and will serve as a layer of abstraction for a staking process that may be confusing or intimidating to some investors.

Value Proposition

Immediate liquidity: xESD will be freely traded on DEXes, offering a single transaction on- or off-ramp for ESD investors. xToken intends to heavily incentivize secondary liquidity of xAssets upon introduction of the XTK token (likely in Q1) and will dedicate a significant rewards allocation to xESD incentives.
Better Collateral: We're all agreed on the potential for ESD as stable, permissionless, truly decentralized collateral. The one missing ingredient is yield generation. There's really no reason for ESD depositors to forgo returns from DAO inflation. xToken is well into the process of building a simple lending protocol for xAssets, and xESD will of course be supported. Additionally, we would expect other lending protocols to support xESD as the project grows in size.
Tax Advantages: This value prop is domicile-specific, but for many investors, each DAO inflation distribution is a regular income taxable event. This represents hundreds of inefficient-rate taxable events for ESD stakers. In the case of xESD, rewards value accrues directly to the value of the token. Said another way, investors can elect when to invoke a taxable event (the sale of xESD) and, on a long enough time horizon, they may benefit from lower long-term rates. [[PLEASE do not take tax advice from our ESD grant proposal]]

Funding Request

In order to commission an audit, the following funds are required: ~15,000 ESD to 0x4c0C29539C463AF348f8Cba8c02D644a8d68C320

These funds will be paid once the contract is complete and we have an exact quote from the auditor. The final amount may be slightly different but we can cap it at 17,500

Further Questions

Feel free to DM me (mjc716) or tag me in public channels in the Discord. Thanks!

Off-Chain Vote

Yes, support xESD

30.94M 100%

0 0%

Download mobile app to vote

Timeline

Dec 16, 2020Proposal created

Dec 17, 2020Proposal vote started

Dec 19, 2020Proposal vote ended

Apr 29, 2024Proposal updated

Value Proposition

Immediate liquidity: xESD will be freely traded on DEXes, offering a single transaction on- or off-ramp for ESD investors. xToken intends to heavily incentivize secondary liquidity of xAssets upon introduction of the XTK token (likely in Q1) and will dedicate a significant rewards allocation to xESD incentives.

Better Collateral: We're all agreed on the potential for ESD as stable, permissionless, truly decentralized collateral. The one missing ingredient is yield generation. There's really no reason for ESD depositors to forgo returns from DAO inflation. xToken is well into the process of building a simple lending protocol for xAssets, and xESD will of course be supported. Additionally, we would expect other lending protocols to support xESD as the project grows in size.

Tax Advantages: This value prop is domicile-specific, but for many investors, each DAO inflation distribution is a regular income taxable event. This represents hundreds of inefficient-rate taxable events for ESD stakers. In the case of xESD, rewards value accrues directly to the value of the token. Said another way, investors can elect when to invoke a taxable event (the sale of xESD) and, on a long enough time horizon, they may benefit from lower long-term rates. [[PLEASE do not take tax advice from our ESD grant proposal]]