Viction Community Call Recap: VIP #1 - The Need for Viction Future Initiatives
Viction recently hosted a highly anticipated Community Call about the Viction Improvement Proposal #1 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 VIP#1 and addressing concerns/suggestions from community users.
The Current Situation of Viction
The Problem: Lacking the Catalysts for Growth
The primary issue addressed was the insufficient staking rewards to incentivize masternode operators. Currently, the rewards do not cover the costs of running these nodes, posing a significant threat to network security. A dwindling number of masternodes could compromise the network's integrity.
Furthermore, the majority of $VIC is held by the public (inc. Masternodes) – with Viction Foundation and its Ecosystem Development Pool holding only a limited amount of $VIC. Given this dynamic, the Viction Foundation currently has limited ability going forward to incentivize ecosystem citizens to build use cases on Viction under $VIC’s current parameters.
The Solution: Increased Staking Rewards and Ecosystem Fund
VIP #1 proposes a two-pronged approach:
- Increase Staking Rewards: By significantly boosting staking rewards, the proposal aims to attract and retain more masternode operators, strengthening network security. The rewards will be distributed over 16 years with a halving cycle every four years.
- Establish an Ecosystem Fund: An 80 million $VIC fund will be allocated to foster ecosystem growth. This includes supporting Retrodrops program, builders & community initiatives, R&D, partnerships, future initiatives and business development. The fund will be managed by the foundation initially, with community governance to be implemented in the future.
Why This Matters
- Network Security: A robust network requires a sufficient number of masternodes. Increased staking rewards will incentivize more operators, safeguarding the network.
- Ecosystem Growth: The ecosystem fund will fuel innovation, attract new projects, and expand the Viction community.
- Token Holder Value: By increasing the staking rewards and fostering ecosystem growth, the proposal aims to enhance the value of $VIC tokens.
Next Steps: Community Voting
The community will decide the fate of VIP #1 through a voting process on the Viction governance platform. Voting will commence on July 21st and conclude on July 25th. To participate, holders must have a $VIC balance before the snapshot time on July 20th.
For more details on the proposal and the ecosystem fund allocation, please refer to the official proposal on the Viction forum.
This VIP represents a crucial step in Viction's development. It addresses a critical security issue while laying the groundwork for future growth. The community's participation in the voting process is essential in shaping the platform's future.
Link to the forum: https://forum.viction.xyz/t/viction-improvement-proposal-vip-1-the-need-for-viction-future-initiatives/2983
Answering the Questions from Community
What are the key differences between the Saigon Network Upgrade Proposal and VIP#1?
The initial proposal was met with community feedback highlighting a lack of specificity regarding its goals and the proposed allocation of funds. The motivations underpinning the changes were not clearly articulated, leading to uncertainty and questions from the community.
In contrast, the second proposal is positioned as a corrective measure, aiming to provide a more detailed and transparent roadmap. By offering a comprehensive breakdown of the 80 million $VIC allocation and providing a broader context of Viction's progress since the rebrand, the team intends to address the shortcomings of the first proposal.
Essentially, the first proposal laid the foundation for the changes, but it was the community's response that necessitated a more in-depth and informative follow-up. The second proposal is an attempt to bridge the communication gap and foster a deeper understanding of the project's direction among stakeholders.
What if Viction team buy VIC tokens from the open market like community members and stake via VicMaster, VicPool, and LiquidStaking for rewards instead of issuing new tokens?
While the sentiment behind this approach is commendable, it's important to consider the practical implications. Acquiring a substantial amount of VIC tokens from the open market could significantly impact token price and potentially create market instability.
Moreover, the primary goal of VIP #1 is to allocate funds for ecosystem development, community initiatives, and strategic partnerships. Purchasing tokens for staking purposes might divert resources from these critical areas.
It's essential to remember that the Viction team is deeply invested in the project's success. Our interests are aligned with the broader community. By issuing new tokens for ecosystem development, we can ensure a steady and predictable funding source without disrupting the market.
Ultimately, the focus of VIP #1 is to create a sustainable and thriving ecosystem that benefits all stakeholders.
Why is the total vote requirement for this proposal set at 5 million VIC, while previous proposals required 10 million? Could you please clarify the rationale behind this adjustment?
The decision to reduce the total vote requirement for VIP #1 from 10 million VIC to 5 million VIC stems from valuable feedback received from the community on previous proposals.
While a 10 million VIC threshold initially seemed ambitious and aligned with our vision for a robust governance system, it became evident that a more pragmatic approach was necessary. The relatively low level of active participation in last governance processes indicated that such a high bar could potentially hinder the progress of important proposals.
By lowering the threshold to 5 million VIC, we aim to strike a balance between maintaining a level of community consensus while also encouraging broader participation. This adjustment positions Viction's governance model more in line with industry standards and increases the likelihood of timely decision-making.
What are the key factors that community should consider when deciding whether to support this proposal?
When evaluating VIP #1, community members should focus on how the proposal directly impacts their involvement with Viction.
For builders and developers: The proposal offers increased funding opportunities through grants and support for integrations, which can be crucial for project growth.
For ambassadors: Enhanced incentives and expanded programs can provide greater recognition and rewards for your contributions to the community.
For stakers: The proposal addresses the critical issue of inadequate staking rewards by significantly increasing them, making staking a more attractive and profitable proposition.
For the broader community: The allocation of funds for ecosystem development benefits everyone by fostering innovation, attracting new users, and increasing the overall value of the Viction ecosystem.
Ultimately, the decision to support or oppose VIP #1 rests with the community. We encourage active participation in the governance process through voting and providing feedback. Your input is invaluable in shaping the future of Viction.
There is a suggestion to merge $VIC & $C98 so that only 1 token manages the Viction ecosystem with $C98 total token supply remaining. What do you think?
The suggestion to merge $VIC and $C98 into a single token is not aligned with the strategic vision for both projects. While there is overlap in terms of community and ecosystem, each token fulfills a distinct purpose and serves a unique audience.
- Preserving Brand Identity: Merging the tokens would dilute the brand identities of both Viction and NinetyEight, potentially confusing users and undermining the value propositions of each platform.
- Restricting Growth: Combining the tokens could limit the ability of each project to expand into new markets and attract diverse user bases.
- Tokenomics Implications: A merger would necessitate complex token migration and distribution processes, potentially leading to unforeseen challenges and disruptions.
Maintaining separate tokens allows Viction and NinetyEight to capitalize on their respective strengths while exploring synergistic opportunities. This approach fosters innovation, maximizes value for token holders, and ensures the long-term success of both ecosystems.
How can we manage and monitor the allocation of 80M $VIC to ensure it goes to the right projects and people? What's the roadmap for implementation, and how will progress be measured and shared?
To maintain the highest level of transparency and accountability, the Viction Foundation will implement a robust system for managing and monitoring the 80 million $VIC ecosystem fund.
Key components of this system tentatively include:
- Quarterly Financial Reports: Detailed reports outlining fund disbursements, project allocations, and expenditure breakdowns will be made publicly available. This approach mirrors the transparency practices of established foundations like the Ethereum Foundation.
- Dedicated Working Groups: Each working group responsible for specific ecosystem initiatives will be allocated a portion of the fund and tasked with reporting on their progress and expenditures.
- Community Oversight: The community will play a vital role in monitoring fund utilization through active participation in governance processes and by providing feedback on project performance.
By combining these elements, the Viction Foundation aims to foster trust, build confidence among stakeholders, and ensure that the ecosystem fund is used effectively to drive the growth and development of the Viction ecosystem.
There is a suggestion to adjust transaction fees from 0.25 gWEI to 5 gWEI because The current decline in the $VIC price requires a transaction fee adjustment to ensure sustainable revenue and stable operations. What do you think on that?
Before answering the question, Thanh appreciates the community's proactive approach to optimizing network economics. “While increasing transaction fees is a potential mechanism to generate revenue, we believe that prioritizing ecosystem growth and user acquisition is paramount at this stage.” - Thanh explained.
Prematurely implementing fee adjustments could hinder network adoption and stifle innovation. Viction focus remains on building a robust and thriving ecosystem capable of attracting a substantial user base. As the network matures and transaction volume increases, we will revisit the fee structure to explore potential adjustments that align with the network's long-term goals.
A thriving ecosystem with a large user base will naturally generate sufficient network revenue. By concentrating the efforts on community building and ecosystem development, Viction is laying the foundation for a sustainable and prosperous future for Viction.
Is there enough time to implement the plan when the cycle has already passed 2/3 of the time?
Thanh's perspective underscores a strategic, long-term approach to Viction's development. Rather than focusing solely on short-term market gains, the emphasis is on building a robust foundation for sustained growth.
By prioritizing ecosystem development and community building, Viction aims to position itself for enduring success. While the allure of capitalizing on current market conditions is undeniable, premature actions such as fee adjustments could potentially hinder the network's overall trajectory.
The speaker's confidence in Viction's potential is evident, as they express optimism about the platform's ability to thrive in future market cycles. However, they also acknowledge the significant effort required to reach this point.
Essentially, the strategy outlined is a calculated approach to balancing immediate opportunities with long-term sustainability. By investing in the fundamentals of the ecosystem, Viction is positioning itself for a strong competitive advantage in the future.
Did you research Tomochain carefully before NinetyEight bought Tomochain? Did you plan minting more VIC before this deal?
NinetyEight and TomoChain shared a history of collaboration, including early discussions about a potential shared token. Both teams were based in Vietnam, fostering a close working relationship.
Initially, leveraging the existing infrastructure and relationships with Ninety Eight seemed like a cost-effective strategy. However, as Viction's ambitions grew, it became clear that a larger financial commitment was necessary to support ecosystem development, grants, and the overall expansion of the network.
This realization led to the exploration of new funding mechanisms, ultimately resulting in the proposal to increase staking rewards and establish an ecosystem fund.
What is the time that the passed proposal will go LIVE and the fund management is transferred to the community?
A phased approach is being considered, with retroactive airdrops as a potential initial step to incentivize community participation. This gradual transition will allow the team to gather valuable insights and refine governance mechanisms before granting complete control to the community.
Transparency and open communication are central to this process. The team plans to share detailed updates on fund allocation, expenditure, and governance developments through various channels, including AMAs and blog posts. By maintaining an open dialogue with the community, the team aims to foster trust and ensure alignment with community expectations.
Essentially, Viction is committed to a deliberate and considered approach to decentralization, prioritizing community growth and development while establishing the necessary infrastructure for effective governance.
Conclusion
The recent community call provided a comprehensive overview of Viction Improvement Proposal #1. The proposal outlines a strategic approach to enhance network security through increased staking rewards and to foster ecosystem growth through a dedicated fund.
Viction is committed to transparency and community involvement. The implementation of the proposal will be executed in phases, with a strong emphasis on community input and governance. As the project evolves, the team will continue to prioritize open communication and collaboration with the Viction community.
The successful execution of VIP #1 is crucial for Viction’s continued growth and development. We encourage all stakeholders to carefully review the proposal and participate actively in the governance process.