I’ve been thinking on the tokenomics and, in particular, the excellent work done by this community in the 4 part series, and while it all seems great, I cannot shake we need to take a step back (or at least I do) and go through a more base level exercise to better understand and map out the tokenomics design back to these users.
I don’t want to get caught up in ‘long-term’ vs ‘short-term’ holders, but more broadly I’d like us to define (a) who are the users of unslashed.finance and then work towards (b) what is their incentives to use/be-a-part-of (or not be a part of) USF.
Here are the ones I see
A. Cover Buyers.
These are the primary users, right? People or projects who need/want insurance. They literally buy policies and the system does not exist with out them. (At this point, they could care less about $USF)
B. Capital Providers.
These are users who provide capital that funds cover. They are equally critical to the app. Because of the current USF incentives, they do care (currently) about $USF, but they are also dumping it so they don’t actually ‘care’ about it and they probably don’t have to. Is it possible the system rewards could be enough? We don’t have to answer this today.
C. Liquidity Providers
These are only necessary for a secondary USF market. If there was no token, we would not need this group, but since there is, we do, at least, if we want to have liquidity (which we should). They may or may not care about $USF, but currently, without incentivizing it, there is no real reason to LP (?). I do not know this to be true.
D. USF Holders
These are (probably) traders. For now, it’s also voting rights in scattershot.
E. sUSF Holders / Stakers
While not built out today, this is (more of less?) the DAO. You more or may not have sUSF (or uUSF) to have voting rights (?), but the point is, they are USF holders who have gone an extra step to “lock” their USF into the system to be involved with it, to vote, and possibly have other benefits.
F. The Treasury
While not an actual user, value does accrue here so I think it’s important we consider it as a user of the system. It is a place where assets will live.
G. The Dev Team
While probably USF users, without them, we have nothing. Perhaps their payroll from raised funds is enough incentive for them, but they are obviously important to the project.
Once we have this list, I’d like to see us think through how any tokenomics incentives or punishes behavior for each user of the system.
Ultimately, I think (and again, I may be wrong) we would like for all users to care about USF in some form or fashion. Mapping this out will help us (or at least me!) understand the design we are going for.