Trybe team recently released links to a draft of the new whitepaper. In its token distribution section, it has a chart showing potential initial token distribution which I have shown below:
As you may see in the chart, the Trybe team plans to keep 20% of the tokens to themselves. The whitepaper also states that “Each year at the end of the beta phase there will be 10% inflation on Trybe.” I personally disagree with both of these allocations. Let me explain why:
Trybe team having control of 20% of the tokens would mean they will have a heavy grip on the platform. It would be too centralized if the team holds such high percentage of tokens. My proposal to improve this would be to allocate 10% more from the founder’s portion to the ICO. Meaning that the team should keep no more than 10% of the tokens.
The money will go towards the development of Trybe if it is allocated to the ICO (which will become 50% of the allocation after the 10% increase) but the tokens will go to the hands of the community. More tokens in the hands of the community equals to more decentralization.
As for inflation, 10% is totally unnecessary. It will scare many investors and suppress the price of the Trybe token. Many investors will not want to enter a token with such a high inflation rate. For token rewards and operational costs, I don’t believe Trybe needs 10% inflation for that.
A token with 10% inflation will be obviously less attractive to investors to hold for long term. Here’s my proposal to improve the inflation system:
- Decrease inflation from 10% to 5%.
- 50% of the inflation (half of the inflated tokens) will go towards Trybe’s operational costs.
- 40% of the inflation will go towards the rewards pool.
- 10% of the inflation will be for staking Trybe.
Trybe team should propose a model that is both sustainable and reasonably attractive to potential investors (that includes me as well). That is what I believe. That’s why I shared my thoughts on this. If you would like to share your opinion about this or disagree with me, then consider leaving a comment explaining that.
This post is about Trybe.one, a quality content focused medium like blogging website with its own token economy. It is planned to be built on the EOS mainnet. You will receive 100 Trybe Tokens (worth over 6$ at current market price) if you sign up now and add your eos account in your profile. Sign up to Trybe here (referral link).