Tide project was started on January 7th, we wanted to closely integrate with Aquarius and lean heavily on AQUA token to give it utility it needs as well as offer an easy way to create trust.
There was clear synergy – AQUA is locked for voting and we need locked assets to establish trust for TTN participants, so voters would gain trust from their votes and get TIDE in the process and could participate in Liquidity pool to get more AQUA.
However In light of recent events, specifically proposal 22 it became clear that we will not be able to accomplish what we wanted to do with just AQUA.
Here are some of the reasons why we think that:
Lack of a clear roadmap from the Aquarius project means we do not know what they plan to do, it seems that they depend on governance proposals to make changes, which makes it completely unpredictable.
Governance proposals have been manipulated multiple times and we are not confident that the community has any say in the decision making and this issue may get worse in the future.
Adopting AQUA as primary Trust asset brings their distribution imbalances in to TTN there is a lot of AQUA that has not been purchased and instead received, via airdrops and distribution, this AQUA has been used to upvote proposals and it will also establish significant unearned trust vale for these wallets in TTN
We do not plan to completely leave Aquarius in the near future but we will be changing how rewards are distributed to align them more towards rewarding TTN participation.
Here are the main reasons why:
Since we no longer place such high emphasis on directing people to buy and lock AQUA token for trust, continuing to reward TIDE token for voting with AQUA forces users to buy it and that does not make much sense now, especially with our concern about inflation.
We want to reward those who help develop TTN and those who participate in the network.
Here are some of the core changes we are thinking about
We plan to reduce amount of TIDE distributed to AQUA pair voters. We do this gradually and the goal is to reduce the hourly distribution from 1000 per hour to 200 per hour overtime.
This will be phase one of the distribution change and we will reduce the amount sent per hour by 50 TIDE per day, so going from 1000 to 200 per day will take about 2 weeks at 50 per day.
This means daily distribution of the token will fall.
Stage two will start when we reach the end of stage one and we will begin rewarding some TIDE rewards to XLM/TIDE Liquidity Pool participants. The plan is to start with 50 TIDE per hour. We want to support liquidity providers.
TTN should launch during this time and some TIDE will be distributed to TTN participants. We are still working out the numbers for this.
By reducing distribution we will be able to keep our options open to create incentives as TTN develops.
So what is happening?
Amount of TIDE distributed per day will decrease while we launch TTN and identify incentive structure.
We will not accumulate TIDE, we just reduce distribution while we transition. The maximum distribution per day is 26,200 but we can do less.
There is plenty of supply already released to onboard people into TTN and this will also reward those who held the token.
This brings many benefits and gives us “ammunition” to increase supply once TTN adoption increases pace.
What happens to MOON?
I will be writing a full update for MOON token soon where I will go over how it will be used with TTN, to clearly establish its utility.
Hourly distribution of MOON token will follow TIDE for now to keep its balance, this means the same decline from 1000 to 200 but no extra rewards for LP for now.
Timeline for these changes
We will be taking comments and feedback on the changes described above for few days.
After we think about the feedback and possibly make adjustments week notice will be issued for implementation