Extension of Vesting Schedules and Introduction of Community-First Rights

Summary

Zero1 Labs is proposing a comprehensive community vote to extend vesting schedules, delay token releases, and introduce new community investment rights. This proposal aims to reduce token dilution and further strengthen our commitment to the current roadmap.

This proposal effectively removes nearly 82.3% of the planned supply from being vested in the first 12 months. We believe the below proposal to be both fair and a strong commitment of our team’s focus to building Zero1 to the community. 

Background

The initial vesting schedules and token release plans were designed to incentivize early participation and support the network's initial growth phase. However, given the current market conditions and the need to foster long-term commitment, we believe that extending these schedules and introducing new community opportunities will better serve the community and the project's overall goals.

Proposal Details

1. Extend Vestings 

We propose to extend the vesting schedules for the following groups:

• Validators: Extend the vesting period to 12 months to coincide with our validator bootstrapping program. 

• Core Contributors: Extend the vesting period by an additional 12 months.

• Foundation: Extend the vesting period by an additional 12 months.

• Advisors: Extend the vesting period by an additional 8 months.

Extend Vesting for Validators

We propose to extend the vesting schedule for validators until post-Cypher launch in 2025. This extension aims to align the incentives of validators with the long-term success of the network.

Community Rights of First Interest for Cypher Validator Nodes

We propose to grant the community the right of first interest for Cypher validator nodes. This initiative will empower our community members to participate more actively in the network's growth and benefit from its success.

Extend Team and Foundation Vesting by 12 Months

We propose to extend the vesting schedule for the team and foundation by an additional 12 months. This extension demonstrates our commitment to the project's long-term vision and ensures that the team's interests are aligned with those of the community.

2. Reduced Token Dilution

These changes will effectively remove 82.3% of the proposed supply out of circulation for the next 12-18 months. By reducing token dilution, we aim to create a more favorable market environment for all stakeholders.

Rationale

The proposed extensions and community investment rights aim to achieve the following objectives:

1. Long-Term Commitment: Encourage long-term involvement from validators, team members, and the community, ensuring sustained support for the network.

2. Market Stability: Mitigate the potential negative impact of large token releases on the market, promoting a more stable and predictable growth trajectory.

3. Community Empowerment: Enable community members to participate in early opportunities, fostering a sense of ownership and engagement.

Voting Process

This proposal requires a community vote to be implemented.

The voting period will begin on 13 June 2024, 2pm UTC and end on 18 June 2024, 2pm UTC. Community members staking $DEAI in Mainframe vaults will be eligible to vote.

Voting Options:

• For: Approve the extension of vesting schedules, delay of token release, and introduction of community rights for first interest.

• Against: Reject the proposal and maintain the current vesting schedules and token release plans.

Conclusion

Zero1 Labs values the opinions and feedback of our community. We believe that this proposal will better align our long-term goals with the interests of all $DEAI stakers and ensure the continued success of our project. We encourage all community members to participate in the voting process and share their views.