Swarm bonding curve community vote

Question:

Should the Swarm Network maintain or remove the bonding curve?

Summary:

The Swarm community is at a pivotal moment with an upcoming vote on the future of the bonding curve mechanism.

The Swarm Foundation invites the community to decide on the future of the bonding curve mechanism, as several community members expressed concerns about the current relevance of the Swarm bonding curve design. You can read more about the voting and the reasons behind it here.

What is the Bonding Curve?

The bonding curve is a mathematical function designed to automatically adjust the token price based on its supply, offering a transparent and predictable pricing mechanism. Initially deployed to enhance resilience against price manipulation and establish a fair distribution system that discourages inflation, the bonding curve ensures token availability for purchase regardless of market supply and demand (more info here).

However, after almost three years, it’s now time for the community of token holders to determine the direction they wish Swarm to pursue.

More information can be found at these links:

• Bonding curve description blogpost
• Voting announcement blogpost
• “Rethinking Bonding Curves” an expert debate. Watch the YouTube video, or read the summary here
• “Are Bonding Curves good or bad?” Twitter space with Web3 and DeFi experts, listen to it here

Voting options

• REMOVE:

Select this option if you want to remove the bonding curve. A majority vote for this option means that the bonding curve will be shut down.

• MAINTAIN:

Select this option if you want to keep the bonding curve in existence. A majority vote for this option means that the bonding curve will remain in place.

Voting timeline

• 28 February,12:00am UTC: snapshot taken for voting eligibility, at ethereum block 19322320 and gnosis block 32668301
• 28 March, 11:59 pm UTC: voting officially opens
• 25 April, 11:59 pm UTC: voting closes
• 4 May, 12:00 pm UTC: if the quorum is met and “REMOVE” won, the bonding curve will be shut down

Important implications on the vote

Please note that if the bonding curve gets voted down, the smart contract will be killed, and the BZZ and the DAI remaining in the smart contract will be lost. There will be no issuance of new tokens, the BZZ in circulation will remain, users will simply buy BZZ from CEXes and DEXes instead of from the bonding curve.

Important considerations

You have 28 days to cast your vote, so if you have any questions regarding the bonding curve or Swarm tokenomics, or if you are unsure about how to cast your vote, there is no need to rush. Please take the time to make an informed decision.

In the case of unforeseen black swan events that might detriment the integrity of the voting, the voting might be suspended.