commit 65b51bc2a134645abab2ae420c9c02cc909da55e
parent 179e25adff67c0ff7dd5f710db478d80e9b68024
Author: nolash <dev@holbrook.no>
Date: Fri, 5 Feb 2021 09:22:54 +0100
Merge branch 'master' of gitlab.com:grassrootseconomics/sarafu-token
Diffstat:
| M | README.md | | | 52 | +++++++++++++++++++++++++++++++++++++++------------- |
1 file changed, 39 insertions(+), 13 deletions(-)
diff --git a/README.md b/README.md
@@ -1,26 +1,51 @@
# RedistributedDemurrageToken
+## Use Case
+* Network / Basic Income Token
+ * 100 Sarafu is distributed to anyone in Kenya after user validation by the owner of a faucet which mints new Sarafu.
+ * Validated users are those that validate their phone number in Kenya.
+ * A monthly Sarafu holding tax (demurrage) of 2% is deducted from users
+ * Each month (after a number of blocks) the total amount tax is distributed evenly out to _active_ users.
+ * any single transaction by a user is considered _active_ (heartbeat) (possibly add minimum size of heartbeat in constructor (TODO))
+ * This is meant to result in a disincentivization to hold (hodl) the Sarafu token and increase its usage as a medium of exchange rather than a store of value.
+ * This token can be added to liquidity pools with other ERC20 tokens and or Community Inclusion Currencies (CICs) - and thereby act as a central network token and connect various tokens and CICs together.
+
+
+## Variables
+
+* Inputs to Constructor (Set only once during contract deployment can't be changed )
+ * `Demurrage` aka Decay amount: A percentage of token supply that will be charged once per - aka `period` and evenly redistributed to _active_ users
+ * Demurrage Period (blocks)- aka `period`: The number of blocks (equivalent to a time frame) over which a new Holding Fee is applied and redistributed.
+ * Inflated Balance: The inflated balance of each user is stored for bookkeeping.
+ * Number of Decimals: Resolution on token (TODO) (Default 6)
+ * Minimum Activity Volume: (TODO) the minimum transaction amount to be considered active
+ * Sink Token Address: Rounding errors and if no one trades the tax goes to this address
+
+
## Ownership
* Contract creator is owner
-* Ownership can be transferred (also to ownership void contract)
+* Ownership can be transferred (also to ownership void contract "no more changes can be made")
## Mint
* Owner can add minters
- - A faucet contract would be a minter
+ - A faucet contract would be a minter and choose the amount of tokens to mint and distribute to new _validated_ users.
+ - The interface says the amount and is at the caller's discretion per contract call. _validation_ is outside of this contract.
* Minters can mint any amount
## Demurrage
-
-* Decay amount (ppm) and period (blocks) is set at deploy time.
- - Cannot be changed
-* Tax is applied when a **mint** or **transfer** is triggered for first time in new period;
+* Holding Tax (`demurrage`) is applied when a **mint** or **transfer** is triggered for first time/block in a new `period`; (it can also be triggered explicitly)
- Supply _stays the same_.
- - Updates `demurrageModiifer` which represents an exponential decay step.
+ - Updates `demurrageModifier` which represents the accumulated tax value and is an exponential decay step (of size `demurrage`) for each `period`
+ - `demurrageModifier = (1-demurrage)^period`
+ - e.g. a `demurrage` of 2% at a `period` of 0 would be give a `demurrageModifier= (1-0.02)^0 = 1-1 = 0`.
+ - e.g. a `demurrage` of 2% at a `period` of 1 would be give a `demurrageModifier = (1-0.02)^1 = 0.98`.
+ - e.g. a `demurrage` of 2% at a `period` of 2 would be give a `demurrageModifier = (1-0.02)^2 = 0.9604`.
* All client-facing values (_balance output_ , _transfer inputs_) are adjusted with `demurrageModifier`.
+ - e.g. `_balance output_ = user_balance - user_balance * demurrageModifier`
* Edge case: `approve` call, which may be called on either side of a period.
@@ -28,14 +53,15 @@
* One redistribution entry is added to storage for each period;
- When `mint` is triggered, the new totalsupply is stored to the entry
- - When `transfer` is triggered, and the account did not yet participate in the period, the entry's participant count is incremented.
+ - When `transfer` is triggered, and the account did not yet participate in the `period`, the entry's participant count is incremented.
* Account must have "participated" in a period to be redistribution beneficiary.
* Redistribution is applied when an account triggers a **transfer** for the first time in a new period;
- - Check if have participated in period.
- - Balance is increased by `(total supply at end of period * demurrage modifier ) / number of participants`
- - Participation field is zeroed out.
+ - Check if user has participated in `period`. (_active_ user heartbeat)
+ - Each _active_ user balance is increased by `(total supply at end of period * demurrageModifier ) / number_of_active_participants` via minting
+ - Participation field is zeroed out for that user.
* Fractions must be rounded down (TODO)
- - Remainder is "dust" and should be sent to a dedicated "sink" address (TODO)
+ - Remainder is "dust" and should be sent to a dedicated "sink" token address (TODO)
+ - If no one is _active_ all taxes go to the same sink address
## Data structures
@@ -48,7 +74,7 @@
- bits 000-055: period
- bits 056-215: supply
- bits 216-253: participant count
- - bits 254: Set if invidiual redistribution amounts are fractions (TODO)
+ - bits 254: Set if individual redistribution amounts are fractions (TODO)
- bits 255: Set if "dust" has been transferred to sink (TODO)
