Saigon Network Upgrade Firechat Recap

Viction

10 May 2024 • 8 min read

Viction recently hosted a highly anticipated Fireside Chat about the Saigon Network Upgrade on Discord with the participation of Thanh Le - Council Member of Viction Foundation and Daphne - core contributor of Viction.

This recap focused on learning more about the Saigon Network Upgrade proposal and addressing concerns/suggestions from community users.

Main proposals in the Saigon Network Upgrade

Opening the session, Thanh highlighted the importance of this proposal and proposed several key changes in the Saigon Network Upgrade:

Increase maximum supply of VIC tokens: From 100 million to 210 million over 16 years.
Increase Yearly Inflation to 4,000,000 $VIC, with a 4-year halving cycle.
Allocate tokens to the Ecosystem Development pool: 80 million VIC tokens. This pool would fund initiatives to attract partners and builders, potentially leading to more applications and use cases for VIC tokens within the ecosystem.
Allocate tokens for community incentives: 10 million VIC tokens. This aims to motivate community participation through programs like ambassador initiatives and startup grants. An engaged community can contribute to the growth and development of the Viction ecosystem.

To succeed, this proposal must reach a 10M $VIC Quorum and receive more than 50% of votes in favor of the proposal.

Details about the proposal can be found here

Why is the Viction Foundation proposing these changes?

The Viction Foundation is proposing changes to the VIC tokenomics with three main goals:

Security: By allocating more tokens to validators, the proposal aims to incentivize their participation in securing the Viction network. More validators strengthen the network's overall security.
Ecosystem Growth: A larger ecosystem development pool allows the Foundation to fund partnerships and initiatives that attract more partners, builders, and users to the Viction ecosystem. This broader ecosystem creates a network effect, potentially increasing the value proposition of VIC tokens.
Community Engagement: Allocating tokens for community activities like ambassador programs and startup grants aims to expand the Viction user base. A larger and more engaged community can contribute to the overall growth and development of the Viction ecosystem.

Comment on the suggestions via Viction forum

As part of Viction ongoing efforts to foster a connected and informed community, Thanh went through comments on Viction forum, providing insights, clarifications, and detailed responses to the community’s questions and feedback.

About the 40M VIC Unlocked from the bridge

Thanh responded to community concerns regarding the recent unlocking of 40 million VIC tokens, explaining the circumstances and strategic intent behind the decision. This action stemmed from a situation where a team attempted to liquidate a significant amount of these tokens on the FTX exchange. And it forms part of a broader strategy to secure and stabilize the network's growth trajectory.

Recently, a significant portion of VIC tokens, was liquidated on the FTX exchange and subsequently acquired by a new group of investors. This group now represents the largest single holder of VIC tokens within the network.

The unlocking of 40 million VIC tokens from the bridge was a tactical decision driven by the need to engage robust partners in the network's future. Thanh also reassured all stakeholders and community members that the unlocking process was handled with utmost transparency and in alignment with governance protocols. These tokens have been distributed to committed investors who support the long-term vision of the network. Furthermore, there is an ongoing dialogue with these stakeholders, who have expressed positive reception towards the inflation rate increase proposal.

"This strategic decision is pivotal for our ongoing efforts to ensure the network's stability and scalability," said Thanh. "Engaging investors who are not only financially invested but are also aligned with our growth strategies is crucial for the advancement of our ecosystem."

Viction remains committed to transparent operations and regular communication with its community to build a stronger and more resilient ecosystem. The annual unlocking of tokens will continue to be managed responsibly, with a focus on enhancing value for all network participants.

Addressing Inflation Proposal Concerns and VIC Token Holder Benefits

Thanh stated that in the past year, Viction Network has undergone transformational changes, including a major rebranding, the integration of significant gaming projects, the cultivation of a dynamic community, and the launch of Viction Network 2.0. These milestones underscore the network’s rapid evolution and readiness for expansive growth.

The proposed adjustment in the inflation rate is designed to secure the essential resources needed for Viction Network to realize its full potential. This strategic move will enable:

Enhanced Collaborations: By increasing funding allocations, Viction Network will engage in more extensive partnerships, further embedding itself in the global blockchain infrastructure.
Community-Centric Initiatives: A focus on community engagement will bolster user interaction and participation across the network.
Augmented Liquidity and Innovation: The initiative aims to attract DeFi projects, enriching the ecosystem with innovative solutions and products.
Transaction Fee Growth: An expanding user base and increased transaction volumes are anticipated to boost fee generation, directly benefiting all stakeholders within the network.
Ecosystem Enrichment: The proposal emphasizes ecosystem diversity with a range of engaging and valuable products, encouraging more frequent and varied transactions.
Innovative Network Integration: With Viction Network 2.0, appchain projects will have the capability to issue and airdrop tokens to VIC holders, enhancing both value and incentives within the ecosystem.

“We are at a pivotal moment where strategic investments in our network can significantly enhance the value proposition for all involved,” said Thanh. “Our proposed inflation rate adjustment is thoughtfully designed to ensure sustainable growth and robust value generation for VIC token holders.”

In response to concerns expressed by some community members regarding the potential impact on token prices following the implementation of recent proposals, Viction Network reaffirmed its commitment to its strategic plan and long-term vision.

Addressing Price Concerns and Long-Term Vision

Viction Network acknowledges the complexities of market dynamics and investor sentiments that influence token prices. While short-term fluctuations may occur, the network's focus remains steadfast on the robust execution and fulfillment of its strategic initiatives.

Viction Network is dedicated to effectively implementing the plans laid out in the proposal, with a significant allocation of resources, time, and effort. "We control our execution, and that is where our focus lies. Our commitment to these plans is unwavering, and we are fully equipped to navigate through these changes," said Thanh.

The enhancements proposed, along with the launch of Viction Network 2.0, are designed to solidify the foundation for sustained growth and success. Key factors reinforcing this confidence include:

Focus on Deliverables: A commitment to cultivating a thriving ecosystem with millions of active users and a variety of widely used products, is expected to increase token value significantly.
Recognition of Undervalued Potential: Despite a potential increase in supply, Viction's current market capitalization remains considerably low compared to other active blockchains, indicating substantial room for growth.
Community and Builders First: Prioritizing community engagement and the integration of talented builders and high-quality products are central to Viction's strategy. This focus is crucial for driving broader market recognition and long-term appreciation.

"We are poised to make substantial advances that emphasize the health of the ecosystem over transient price shifts. Our strategy is designed not just for immediate gains but for enduring success, ensuring Viction remains a leading force in the blockchain space," - Thanh.

VIC Token Utility Explained

The second question revolves around the future utility of the VIC token. Many users seem to focus solely on transaction fees and question the purpose of the token after the proposal is implemented.

The VIC token is set to extend beyond its current role, encompassing a wider range of uses within the Viction ecosystem. This expansion aims to solidify the token’s position as a cornerstone of the network’s operations and user interactions.

Community Currency:

Similar to cultural tokens or community currencies in other ecosystems, VIC tokens will be the backbone of transactions within Viction. Every user interaction, whether a basic transaction or a more complex one, will require VIC tokens.

Simplified Onboarding:

Currently, the basic protocol utilizes VIC tokens to create a smooth onboarding experience. This introduces the concept of fees while offering the possibility for developers to cover those fees on users' behalf, as already seen within the Viction ecosystem.

Enhanced User Experience:

From a user perspective, VIC tokens will function as a community currency. For actions such as trading assets on Viction, utilizing VIC tokens offers advantages and encourages wider adoption.

Improved Liquidity:

Recognizing the need for greater liquidity, Viction plans to introduce farming pools post-proposal, aimed at incentivizing participation and enhancing token liquidity. This step is crucial for enabling advanced features like lending protocols and perpetual swaps.

Building a Sustainable Ecosystem:

The overarching goal is to create numerous opportunities for users to earn and spend VIC tokens actively within the ecosystem, fostering a vibrant and self-sustaining environment.

“We are dedicated to continuously expanding the utility of VIC tokens, ensuring they play a pivotal role in the Viction ecosystem,” explained Thanh. “Our commitment goes beyond mere transaction fees; we aim to create a rich tapestry of interactions and benefits that enhance user experience and ecosystem health.”

Addressing Proposal Failure and Inflation Concerns

Plan B if Proposal Fails

One question the Viction team received is what happens if the proposal doesn't pass. In that scenario, Mr.Thanh suggested continuing to operate under our current budget and maintaining the existing token supply cap. However, the progress in growing the Viction ecosystem could not be aggressive without the ecosystem fund although the core initiatives and development efforts will remain unchanged.

The team understands concerns about the proposed inflation increase. While a no-inflation plan might seem ideal, securing the resources necessary for Viction's growth requires this proposal.

Ultimately, the success of Viction depends on a thriving community. Viction is committed to dedicating our resources and efforts, regardless of the proposal's outcome. However, a successful proposal will accelerate development and deliver even greater benefits to all stakeholders.

Addressing LUNA Inflation Comparisons

Viction Network acknowledges the community’s concerns stemming from comparisons with other blockchain projects like LUNA. "It's important to note that our strategic circumstances and the specifics of our proposal are fundamentally different from those seen in other ecosystems," Thanh added. Viction is focused on a tailored approach that aligns closely with its unique needs and long-term vision.

Why Now is the Right Time

The team has received a question regarding the timing of this proposal, specifically why it wasn't implemented alongside the previous acquisition.

Here's Thanh reasoning:

Preparation is Key: Viction believes a successful execution requires meticulous planning and research. There were significant information gaps regarding token holders and potential challenges that needed to be addressed before moving forward.
Perfection is the Goal: This proposal is considered highly beneficial to Viction holders, and the team wants to ensure flawless execution. Rushing the process could jeopardize its success.

Building a Strong Foundation:

Before the acquisition, the primary challenge was securing support from centralized exchanges. Implementing the rebranding proposal without this crucial foundation could have negatively impacted the long-term success of Viction.

The Right Time for Action:

With the necessary support now in place and a thriving community behind Viction, it was believed this was the perfect time to take the next step. Detailed Action Plan (if Proposal Passes)

The team has also addressed the next steps if the proposal is approved. Here's a breakdown of the initial plan:

Target Launch Date: The Saigon Network Upgrade proposal is slated to go live in July, with the first project launching in August.
Working Group Formation: Viction will establish working groups to facilitate efficient execution.
Community Building: A focus will be placed on scaling communities in local countries for broader reach.
Liquidity Mining Program: The Team plans to launch a liquidity mining program to incentivize user participation.
NFT Community Integration: Efforts will be made to attract NFT communities, artists, and founders to the Viction ecosystem.

This is a starting point, with a focus on careful and strategic investment to ensure long-term success.