Proposal - Increase Phore Development Fund.
This proposal has been submitted on behalf of the official Phore Blockchain team.
The value of this proposal will be 200PHR. The proposal will be considered passed if more than 50% of voters are in favour
The entire crypto industry was founded on the ideal of decentralization. It’s no coincidence the title of an article from ‘The Times’ (UK Newspaper) is etched into the source code for the genesis block of the Bitcoin blockchain forever; ‘The Times 03/Jan/2009 Chancellor on brink of second bailout for banks’.
Satoshi Nakamoto understood the value of greater decentralization as the world moves into a new era of finance and technology. This philosophy which started even before the very inception of Bitcoin seems to have been forgotten in a large number of more recent crypto projects. Some projects have premined massive amounts of their own tokens, and held ICOs and cashed out the proceeds into local fiat currencies, usually with no accountability for delivering what was promised to investors.
This is another form of centralization!
Just as Satoshi did 10 years ago, Phore recognizes the need for decentralization. We’ve remained completely true to this from our 100% fair distribution (Phore was airdropped in equal stakes in its original form as KryptKoin), through to our development budget system, which is governed by the community. This puts the trust dynamic the other way around–the Phore Blockchain team is accountable to the Phore community to deliver on the vision and milestones the community has approved, and the community decides on a regular basis whether or not to approve the team’s budget as those results are realized.
With all this being said, due to the fact that Phore has stood for decentralization above all else, our decentralized, community governed, funding-over-time model we have does have some disadvantages relative to projects who have deep pools of reserve funds from their premines and/or ICOs.
We still feel our decentralized and community governed budget process is superior. Many of these other projects have faltered in recent times, either making drastic cuts, or going out of business and leaving their communities with nothing to show for their ICO
or premine sale investments. Bear market or not - Phore has bucked the trend by continuing to grow and continuing to build out the Phore ecosystem and make the Phore roadmap a reality.
Although during the crypto bear market both the BTC and $USD values of the monthly Phore development budget has fallen, within the last 2 months alone we’ve welcomed three additional senior developers with a combined development experience of over 40 years! Our new developers include two full time and one part time resource. We have also made significant progress in our overall operation with the growth of both our Legal and Marketing teams.
Though Phore development has continued to thrive throughout this extended bear market, we have now reached the point where we need additional funding to continue operating and growing the Phore team, beyond what the 43,200 PHR monthly budget can support.
In order to fulfill our ambitions of making Phore into a platform that rivals the largest and best projects out there, the core team (development, marketing, operations, legal…etc) need further resources to function at a higher and more effective level.
The current development fund portion of the block reward is capped to a maximum of 1 PHR per block.
The team proposes we increase this maximum to 3 PHR per block.
This proposal allows us to operate on more of a level playing field with ICOs and pre-mined projects, whilst remaining true to our decentralized nature and continuing to have the budget subject to community approval every step of the way.
Since we are a community governed coin, we want the community to vote and decide what they feel is best for the long term success of Phore.
To assist with your decision, we have identified some potential pros and cons of the change proposal which we have outlined below. We welcome all comments, questions and feedback in the forum below as we make this decision together.
Further innovation - We’ve already given the Phore community examples of this by being the first PoS coin with Masternodes in the world to integrate SegWit, launching the Phore Marketplace Beta, and with the Synapse Sharding architecture (which is coming up for Beta testing - follow progress here : https://github.com/phoreproject/synapse). With a larger team there would be more innovation, and on a grander scale.
Faster development - Phore has already produced a working Beta version of our Decentralized Marketplace (full version coming soon), made continuous improvements to the core code and produced a fantastic user experience with our in-wallet Masternode setup and Proposal Voting features. With more developers on board these updates would be more frequent.
The ability to deliver more things concurrently - more developers give us the option to work on more things at once. This is important to the overall growth of the Phore ecosystem, as our decentralized applications are just as critical to the utility of Phore as the core wallet, and we feel the combination of blockchain technology, ready to use, user-friendly decentralized applications, and blockchain services are a crucial part of what makes Phore a compelling platform for users, developers, and businesses.
The ability to grow the team - Unlike the majority of others, Phore understands there is more to a cryptocurrency project than development and marketing. For example, Phore is one of very few projects out there to have an in house professional legal team. We recognise the regulatory landscape is changing and we want to stay ahead of the curve. As we continue to launch and enhance more products within the Phore platform and integrate Phore into more of the broader financial ecosystem, we will need additional resources to continue providing high quality support and operations as well as helping to ensure we can quickly respond to regulatory/legal issues and other developments across the industry.
The ability to make Phore more accessible (more / higher tier exchange listings + hardware wallet integrations…etc) - Although this extended bear market has significantly reduced the entire cryptocurrency market cap, exchanges are still quoting hefty $USD prices for listing, promotional/marketing token requirements, and sometimes other fees on an ongoing basis for wallet upgrades etc. Integrations with other products and platforms almost always require coding work and often have other expenses for hosting or integration by the teams working on integrating Phore into their products and platforms.
More Marketing - More demand, more users and more adoption of Phore. This snowballs as the community of Phore users grow, which leads to valuable free additional Marketing via ‘word of mouth’. We want everybody in this space to be aware of what we are doing and to also expand this into the everyday world.
Better quality Marketing options - With the current budget we’re extremely limited in terms of what the type of Marketing we can do. Our Head of Marketing (Jennifer) has over 25 years experience in professional marketing and has worked with many Fortune 100 companies. With an increased budget, not only can she reach larger and more focused audiences with more effective methods, she can also continue to develop and grow our in-house team, and provide incentives for decentralized community marketing initiatives.
Increased Liquidity - Phore’s vision is to be used globally and to be accessible to everyone–we want it to be easy to acquire, trade, sell, and hold in as many places as possible. Phore is in active discussions to be listed on much higher volume exchanges, and plans to expand the user base dramatically with the rollout of the final versions of the Phore Marketplace and the Synapse Sharding architecture. One of the key questions both individual and institutional investors ask about is liquidity–how easily can a large investment be bought or sold quickly without significantly moving the price. While we do not believe in a large increase in Phore’s supply would make sense, we do think a modest increase in supply could help alleviate some of these concerns. The proposed numbers involved are demonstrated further down on this page.
Increased Total Supply - While the point above argues the merits of a modest increase to the very small relative supply of Phore today, we should also consider potential risks.
There are multiple factors that affect supply given the PoS and transaction fee structure of Phore. All transaction fees, budget proposal fees, etc. are burned, reducing the total supply, and with the success of the marketplace, transaction volume could rise dramatically. The budget proposals would still each require community approval, and as such may not use all the available budget depending on what the community votes for and against.
Leaving out those reductions in supply though, we can project what the difference in total supply would be based on the increase in the development fund portion of the block rewards, assuming all of it is approved and used for continued Phore development:
(1PHR / Block Development Fund) Total Supply on:
Jan 22nd 2019 = 15,979,915 PHR
Jan 22nd 2020 = 18,847,252 PHR
Jan 22nd 2021 = 21,059,236 PHR
(3PHR / Block Development Fund) Total Supply on:
Jan 22nd 2019 = 15,995,015 PHR
Jan 22nd 2020 = 19,898,452 PHR
Jan 22nd 2021 = 23,161,636 PHR
Increased spending on Phore development - While we do believe the Phore ecosystem will benefit from accelerated development and resources to fund that development, it is certainly still a choice to keep the limit of development funds to the current 1 PHR per block maximum. Without this increase, the Phore team is still committed to doing as much as we can within the limitations that level of funding provides. Each member voting on this proposal may have a different view of how much and how fast they believe the Phore team should move towards building out the Phore platform including the new Synapse architecture, smart contract support, full launch of the Phore Marketplace, crowdfunding capabilities, and other planned Phore development.
As you can see from the projections above, the changes are not a particularly large increase, even over a lengthy time span. Phore would still have a much lower supply than the majority of other coins on the market.
It is important to understand that this request to increase the development fund is for the sole purpose of the progression of Phore’s development and vision, and will therefore benefit Phore holders directly. The Phore community will continue to direct and approve the funds via community governance proposals, the same way we have since Phore mainnet went live.
The team’s capabilities, dedication and pragmatism have taken us to a strong position where we are producing some truly groundbreaking technology which solves real world problems in both the eCommerce and communication industries.
We now need the community’s backing so that we can complete this vision and bring these developments to the world, so that we continue to scale, so that Phore can become a much more competitive platform and ecosystem within the industry.
With so little we’ve built so much. With additional funding, and your support, the sky’s the limit!