[Proposal] SIP-X Enable SDL trading via Governance

Summary

If successful this vote will petition the multisig governance ( 0x3f8e527af4e0c6e763e8f368ac679c44c45626ae ) to trigger the function required to unlock transfer of the SDL governance token.

Background

The SDL governance token was originally locked so that holders could not trade it. This prevented any price discovery, but now the project is maturing and the initial mandatory 3 month lock period has ended as of a few days ago.

Motivation

Price discovery allows better allocation of capital to the Saddle pools and incentivized growth of the project. It also allows stakeholders to estimate the value of the project better.

Specification

If this SIP is passed the Governance mutlisig will execute the function “enableTransfer” on behalf of the DAO enabling anyone holding SDL to then transfer it.

For: Enables price discovery, the token will become fully unlocked in November anyway as anyone can unpause the transfers then.

Against: Limiting price discovery longer may lead to a fairer, more decentralized distribution of the token. The project may not be priced favourably in the current market climate.

Poll: No poll yet, awaiting discussion.

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Thrilled you brought this topic up for discussion!

The Saddle core contributor team is excited to begin the process for unlocking the SDL token to begin the price discovery process. This post comes at a great time because today I will be wrapping up the tokenomics proposal which will be presented to the team. Once we align internally today or Monday/Tuesday, our tokenomics roadmap will immediately be made public for the community at large to comment on + add suggestions to.

As you might know, currently the SDL token’s primary utility is governance. As such, the core team thinks it would be in everyone’s best interest to implement at least some of the our soon-to-be proposed tokenomics plan before a full unlock. The tentative tokenomics model will be a never-before-seen combination of Uniswap + Curve + DeFi Kingdoms + OlympusPro/Tokemak + some added twists for extra flair. This is all with the aim of moving away from the industry standard of inflationary, self-referential, and ponzi-like tokenomics models towards a more sustainable, and grounded tokenomics model.

We’re beyond excited to share this milestone proposal with the Saddle community in the coming days (ETA early week of 2/21). Engineering tentatively estimates a couple weeks for at least the first stages of this tokenomics stack to me implemented at which point we anticipate a stronger reception by the DeFi community at large when we unlock. Can’t wait to hear everyone’s thoughts next week!

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What will “price discovery” do for the project right now? Unlocking the token without a clear benefit seems short-sighted at best.

MTA has price discovery, BAL has price discovery. How is that growing trade volume for those projects?

EDIT: I’m also interested to hear more about this proposed token model from @CXGonzalez, just want to be clear that I believe the above needs to be asked, regardless. Without a clear win, IMO, it’s a loss.

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I think one added benefit is creating more discussion / attention for saddle as a whole, and getting some bag holders onboard. Right now the community is quiet af, and not much conversation going on at all. More messages in tg chat today about this topic than the month prior on any topic. Discord slightly more active but they just talking about anime.

A bit of “Devs do something” or “when moon” is better than radio silence imho.

There can also be benefits in launching with a low circ supply but I don’t think this is too important here. But kind of on a similar note, how fast is VC allocations vesting in relation to other e.g., team, or liq mining allocations.

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I do not think it is wise to allow the markets to determine the value of a token which us, the users of the protocol itself, do not fully understand the value of.

I will choose to align my vote with allowing the development team to have as much time as they need to create an ecosystem wherein everyone can win, and the market can freely decide with all of the facts, what the value of the token is. Rather than open speculation in a market where the only options are to buy, or sell.

As much as anyone, I would like SDL token to be a recognizable force in the markets, however, like any asset new to market, if it cannot deliver on it’s promises to a hype-filled audience, they will dump it for the next hot thing. /my opinion/ therefore we need to have somewhere for people to channel all their hype about the freshly unlocked tokens(aka money) they can suddenly use(aka spend/invest) /my opinions/

At the end of the day, if SDL is less attractive than just swapping to ETH, BTC, or stablecoins, then swapping is what users will do, and swapping is a sell on the order books and that equals downward price pressure, which equals SDL looking less like a good token to come earn. Therefore, we want the market to align with longterm hodl. How will we do that? Beats me. Christian has a proposal I have anticipation to read, but in the end what the dev’s build and deploy onchain will, regardless of nature or function, not be released in time for the market to determine SDL price fairly given the present information available to said market participants, and therefore I conclude it is unwise to unlock the token for trading at this time.

Christian I am dying to read that proposal :rofl:

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Going to align my vote with Rachel and CXGonzalez here; I understand that people want the ability to sell their tokens (as do we all, eventually) however I feel that the motives behind an early release are primarily to sell off tokens for those eager to offload their tokens and remove Saddle from their portfolio.

I vote to let the dev team have as much time as they need to build out solutions which add value to the Saddle token. I also want to propose that we launch / have launch ready for the time in ‘altcoin season’ to maximize token price at time of launch. I think that this will appease those who are looking to sell their tokens now (we are launching at a more appropriate time, they can sell then).

I do want to raise the question of whether there are any VC portions which are unlocked / will be unlocked at time of transfers being enabled, so that we can know if we’re about to see significant sell pressure.

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Agree with Apollo_Labs this is not a good time to issue a token.

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I personally feel that Saddle is at a stage where it’s identity is being better established within the community at large. As an organization Saddle is finding its footing rooted in friendly bcollaboration with major protocols-- as the number of protocols hoping to implement stableswap increases, and Saddle manages to keep that friction low, the organization will find itself in a unique position to guide and lead the future development of the technology.

When larger organizations have a vested interest in Saddles ability to maintain developmen on, and the security of, their codebase; we should also see their need to holding voting power in Saddle rise dramatically.

The way I see it there are positives to releasing the token sooner rather than later-- if only because it would serve to move the token from farmers and dumpers to those who are interested in hodling, at a lower price. This would potentially get bags in the hands of strong supporters, and at a good enough price that they may miss the chance to complain much.

But I’m my strongest opinion the negatives outweigh the positives. Price chatter and price news will trickle through the collective minds of internal and external communities-- potential users may be turned off if they come to the platform during a bear market, there’s a chance that the vision of the project will sit in the shadow of the tokens preformance, and worst of all there’s a certain amount of the protocols agency lost to price action [red reflects poorly on the team in news regardless of their personal impact]

I would have to vote nah, my dudes.

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I’m glad to hear some opinions on this, I mainly wanted to see where the design was going and now I’m willing to wait longer for a well drafted tokenomics to be thought up.

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I will support Rachel and Apollo. I also think that now is a very bad time to release any token to the market.

I think this will be a plus for the saddle community, because it will attract more liquidity, because they know what they get. Lp’s are now purely speculative.

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Can’t wait. Let’s make it happen.

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I don’t understand why “this is not a good time to launch a token”, is it because we’re in a bear market and every token is collapsing? I don’t think it’s a logical idea. The reason why MTA and BAL collapse is that they saw a tremendous price jump in the bull run, SDL hasn’t. Launching in bear market is good, it gives believers/investors an opportunity to buy or farm more tokens.

+I strongly disagree the idea “Limiting price discovery longer may lead to a fairer, more decentralized distribution of the token.” It’ll only lead unfair distribution to whales. Just look at the depositors of the protocol. Many protocols showed us that TVL has jumped after the token unlock. TVL has to jump in order to achieve more dedentralized distribution of the token.

I will vote FOR with no doubt.

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This way, whales know what they’re gonna get. Unlocking SDL will definitely help to achieve a decentralized, fairer distribution.

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the “this is not a good time to launch a token” sounds like they just trying to protect investors lol

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lets get poll happening

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Against - for now. Let’s have a discussion and debate about the coming tokenomics proposal before unlocking the token.

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just let us vote if we are really DAO.
I will vote FOR.

The benefits of unlocking a token for trading.

  1. The earlier the trading story starts, the more people will learn about the project.
  2. Many people who want to buy SDL will realise that desire.
  3. When it is clear how much profitability the pools have, there will be more liquidity providers who will make deposits in the pools and reduce slippage.
  4. More token holders → more project awareness-> more trust in the project-> more trading-> more commissions from trading.
  5. As long as cryptocurrency capitalisation is at high levels, SDL token will be valued by cryptocurrency community at its highest point
  6. The earlier the trading starts, the less tokens in circulation and the higher the price. This will attract more liquidity to the project and recognition.
    Cons:
  7. There is still a lot of work to be done on the project.

I think voting should be open at the very least.

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Once we align internally today or Monday/Tuesday, our tokenomics roadmap will immediately be made public for the community at large to comment on + add suggestions to.

Any news on the token design yet?