Artem Brazhnikov / DCxPrague

Transcript

thanks Pablo I think it was a great presentation and now we can get to practice right so what I want to talk about a little bit is about the project we buil called octant uh a sustainable way for to reward uh to build uh to fund build reward and fund public goods uh with taken rewards and [Music] um donation-based public goods funding is not sustainable long term we have a number of initiatives right now like getcoin in the space that have been funding certain public goods successfully but if you're going to go and look there are so many projects and only small amount of project receive

like large donations and what actually have to happen for people to receive those public those funds uh people have to take money out of their pocket and fund public goods I think there's a number of use cases where donation based public goods funding works but I think if we want to get to long-term public goods funding we need to use Capital based uh public goods funding uh what is octant uh at Golden Foundation we created this mechanism where we are staking so staking 100,000 e which is approximately $200 million right now uh those rewards accumulated over time uh they are accumulated

approximately over a period of 3 months and what happens after that is a part of those rewards goes to octant it goes to the smart contracts of octant that they call Total Rewards and the reminder is transferred back back to the foundation those rewards are divided into Parts there are user rewards and match rewards so that's where it gets interesting and practical based on uh what Pablo is talking about so the match rewards go to and get donated to to fund public goods and user rewards goes to users uh they can just go and claim the rewards in the application but what they

can do as well is that they can apply self taxation to that so if they apply self taxation they can send a part of those rewards to the marching funds and uh to to the projects to fund public goods and they're going to be matched with the match rewards so if user donations are matched with the funds from much rewards that gives users a leverage and it gives them much more power to decide who to fund so in this scenario we are creating a system where where you have like a large player in the space and the large player decides to create a mechanism to have a capital based public goods funding mechanism uh

we have the match rewards which which is a pretty large amount of the rewards that already get sent to to fund public goods but what we are also doing is that we give users power to decide who to fund and how much because when you apply self taxation to the yield that you're eligible to claim uh the more you donate to fund public goods the more power you have and another important Point here is that we are building like an experiment in the governance and we want to make sure that people participate in it that's why there is a rule no action no reward meaning if you didn't come and didn't claim your reward during a certain period of time which is called like allocation period that runs for two

weeks then you don't receive any rewards and obviously you can just grab 100% of your rewards and go home nobody stopping you from doing that but if you actually donate a part of that you're going to get matched and you can really uh have a say in what you think public goods projects are important uh so yeah this is just like basically an anation that of what I just showed you uh and we just successfully finished our first allocation first Epoch and we distributed uh around half a million dollars to worth of eth to 19 public goods projects and there is some stats

of this so we had 24 projects five of them haven't reached the threshold and these are the top project they received the funding so the match rewards that I showed you before in this round were 230 E which is approximately 70% from all the total rewards and the individual rewards were around 100 e and people who chose to donate a part of those rewards they basically decided how to distribute the MCH rewards between 19 projects the the top receivers of prodal Guild rodkey hypers SS and Tor project so these are some of them you probably know protol

Guild contributes to the protocol layer and essential for ethereum sustainability um and there's also some other stats that we see that 23 and 5% of donations went to public goods from Individual rewards and round 76 went to the people wallets to be fair uh from those 23% a part of of the percentage was donated by people who had a large stake in those rewards and we call it like patn mode meaning you don't decide who to fund you just donated to m in fund um and yeah down there you can see like top projects by donor so you can

see the gitcoin for example they are mobilized their Community the most so they had like the top top amount of donations but because of the smaller donations they received the prodigal guilt uh was in the first place because they had like large amount of donations and and to visualize a little bit The Leverage that the people had when they were doing those donation is like 41x meaning the 5.5 these are individual donations not including this Patron mode and then they decided how to distribute almost 230 E um yeah so this is kind of the graph of

how this rewards were distributed and the red one is basically no auction no reward so people just N9 e no thank you I don't know why they decide not to claim it but the funds that did not claim they go back to the foundation um so yeah that's uh like the first part but the thing that we're mostly excited about right now since we like ran the first round we prove that that model like similar to impact saving actually works we can fund some public goods and we can expand this model extrapolate it and how do we actually like find all ethereum public

goods so if we think about like a nation nation state and that's what Pablo was talking about like ethereum Nation one of the functions of nation state is to fund public goods right uh some people just don't think about it because they assume that public goods exist but there is a machine that generates them and the Machine is usually rooted in fear right because there is certain r responsibility from people uh but mostly there is a fear if you're going to pay the taxes we're going to put you in jail and inforced by violence but what if we imagine the world where we make a social Norm to donate a percentage of St reward to public goods self taxation is rooted in resp responsibility it's uh execution

is enforced by decentralized computation it's a completely different world where you can choose to a part of your rewards to fund public goods and we have the blockchain the decentralized computation engine that is going to enforce that um so how we actually do this so we created this mechanism designed with octant that already sends a percentage of the yield to fund public goods the next steps forward is we want to experiment with different voting and allocation mechanisms because right now the allocation happens in a linear way uh we're going to experiment with quadratic voting identity voting Macy and other mechanisms to see how they

actually like influence the the public goods projects and how people vote and we also can experiment with multiple mching funds because right now this mechanism works with uh ethereum under golden Foundation but if you imagine that this the same model can be replicated with other tokens right not only with Golem token you basically create a similar mechanism where people can decide how to fund public goods in their ecosystem and ethereum in general which can also like possible to create one large like matching fund to find all eum public goods um yeah uh this is Octan you can go and

check it out if you're curious uh how much time we have four minutes so we are really curious to uh get some opinions from the audience uh wrote down some some questions feel free like to answer those if you have an opinion or if you have like another question I'm happy uh to to discuss that because I would really love to uh receive the feedback and understand what do you think about this sure income can be

automatic yeah it can can be automatic but then uh you you don't know who's going to start using this system right um I think the answer lies in the combination of those for example a certain mechanism can just cut 1% and it's going to be just enforced by blockchain and everybody going to go and see okay you don't need any violence yeah exactly like right but also in this experiment we want to see how people choose to donate right because you give people more flexibility and freedom somebody just doesn't want to uh send and yield to fund public goods and and somebody just wants to donate but what happens in this learning curve is we can understand what people actually donated

who what people care so then you can like look at the blockchain see who donated and how much and give them more power so basically this is like a free riter problem I have this like a a secret slide in the end the uh how do we solve the free writer problem you reward those who are not free writers you give them back uh you give them more voting power you reward with different like social rewards poops hypers and different things and you create this layer of people who actually care thank you yeah oh yeah yeah go for it uh yeah I guess the thing I'm curious about is is um depending on the jurisdiction of of where where the the donor accounts are

so if there's going to be automatic donations made to a charitable cause and you're in a some jurisdictions might give you a a tax discount on that so could have proportion of that donation go towards setting up entities or or charitable entities in all the different jurisdictions around the world that that provide that discount as an incentive um as well so then yeah yeah that that that that's amazing idea I mean we were discussing like different like tax questions in terms of when people choose to donate uh to public goods and how it relates to the legal questions but thanks for pointing that out yeah um no Dennis and you go ahead I was going to double tap on that you know

being able to get a tax credit for donating in public goods I think could actually be the solution there a kind of overlap with like people feel unfairly taxed in crypto with public goods with getting a tax rebate um so that could be a very very very viable solution yeah and I think also we are kind of can create a bad narrative for crypto in general right because a lot of people see crypto as just people who try to make money around like the bull cycle but there there aren't many people who actually want to create system for for the better future so yeah uh this is kind

of neither here nor there but if nobody else has a more relevant one I just wanted to say um I guess like what something I think about a lot is that particularly in America it feels like free riters get a lot of like there there's no social stigma against it right and in fact like that kind of hustle is almost respected in a hilarious kind of way and I'm sort of wondering how we might build systems that kind of encour like building inclusion and encourage people to contribute to their communities and have that be respected rather than maximizing your own personal extraction and having that be like what we idolize which is pretty weird yeah uh I completely agree with you and that's why I think like because we have the blockchain right we

can look back in the history and do data analysis and understand who is actually not fre writer then you can just uh get give more back to those people and also like going back to a couple of slides uh let's make it like a social Norm right like make make a social Norm donate to to public goods do the self taxation uh this is a responsible thing to do protocol layer doesn't appear in itself but lot most of the value is ACR on application layer yeah I think there's a lot of value to us building these social connections like genuinely I think that matters a great deal thank [Applause] you