TIP-9: Formalizing Core Contributors THALES token allocation and respective rules

id	Title	Status	Author	Description	Discussions to	Created
TIP-9	Formalizing Core Contributors THALES token allocation and respective rules	Vote Pending	Danijel (@Danijel), padzank (@padzank)		https://research.thales.io	2021-11-04

#Simple Summary

This TIP aims to formalize how a CC allocation vesting will work in detail and what are the rules for when a CC vesting can be interrupted

#Abstract

From the THALES tokenomics article, 20,000,000 THALES (20% of total supply) was set aside for core contributions. The vesting rules defined a 1 year cliff and then a 3 year linear unlock.

This TIP proposes a more detailed set of rules on how the vesting would work and when it can be altered, stopped and when a specific allocation can be returned to the treasury.

#Motivation

It is intuitively clear that bringing in capable and loyal CCs requires incentivizing them with a token allocation. The DeFi space never lacks opportunity, so to offset the opportunity cost, and for long term alignment sake, the token vesting needs to be ongoing and long term.

The initial plan of having the tokens allocated for a given CC never accounted for a scenario in which a CC stops being active and stops contributing to the protocol, but his allocation continues to be lineary vested.

This TIP proposes that Thales ProtocolDAO maintains control over the vesting contract and can stop the vesting of a CC that is no longer contributing to the protocol. The said CC would keep the allocation vested to date, but the remaining allocation is sent back to the treasury and available for reallocation to others/new CCs.

As we have previously announced a large portion of CC tokens were unintentionally locked in a contract:
https://thalesmarket.medium.com/a-part-of-thales-core-contributors-tokens-are-locked-and-its-implications-241fcec37888.

This ended up being a blessing in disguise as it allowed the Thales CCs to come up with a better mechanism of vesting that rewards ongoing loyalty. As Co-Founders carry the largest risk and responsibility to lift the brand new protocol off the grounds, a large percentage of the CCs allocated tokens was to be split by Thales co-founders, as the norm has it in DeFi. As of the time of writing this TIP, one of the co-founders Farmwell has not been contributing to the protocol to any extent and has been unresponsive to any form of communication for more than 2 months. There have been no responses to a single DM from any other CC or Strategic Partner. There is absolutely no certainty on whether the individual at question will come back and in which capacity. As such, the allocation that was planned to go to him, should be reallocated to other CCs that carry the burden of his absence.

#Relevant Specification and Rationale for TIP-9 can be found in the following page:

https://github.com/thales-markets/thales-improvement-proposals/blob/main/TIPs/TIP-9.md

#Are you in favor of this proposal?