Spinning off the Community Fund discussion of the Epoch Rewards discussion (Discussion on Celo Epoch Rewards - #15 by asa).
- ~7 million CELO in the fund (GovernanceProxy (0xD533Ca259b330c7A88f74E000a3FaEa2d63B7972) - Celo Explorer)
- 25% epoch rewards share translates to a absolute growth of ~5.5 million CELO per year
- Currently allocated: ~900k
There is a lot of CELO that is not being used. Why? How can we use the community fund better?
Not to be confused: There is the Community Fund Epoch Reward share, which is sent to the governance contract, and the Celo Community Fund (https://celocommunityfund.org/). Those are two different things, and the Celo Community Fund from @deepak, @Patrick, and @Dee has a current allocation of ~665k CELO from the governance contract.
As most of the funds are currently not being used, the utility of each additional CELO rewarded to the community fund is very low, and it comes at the cost of downscaling other epoch rewards: voter, validator rewards, and carbon offset.
Decreasing the community fund share from 25% to 5% would help to reduce that downscaling and mitigate the effects of it.
In absolute numbers this proposes to decrease the growth of the community fund from ~5.5 million to ~1 million CELO a year.
Growing the community and enabling posperity should remain one of the if not the highest priority, and I don’t see this proposal impacting this as there are still more than 6 million CELO waiting to be allocated and the intention to increase the funds once they could be used.
As soon as the community fund is growing at a faster rate, this epoch reward share should be increased again, and we still have the ~6 million CELO as buffer.
This CGP as part of all four proposed Epoch Rewards CGPs are proposed as a temporary solution which buys the community and the cLabs economic teams some time to come up with a better, more sustainable long-term Epoch Rewards mechanism.
- How can we use the community funds and put them to a good use?
- What arguments for and against reducing the Community Fund Epoch Rewards share do you see? Curious to hear other perspectives and maybe there is something that’s missing from the more general epoch rewards discussion so far.