My idea here is not to increase the masternodes number (although I think that would be beneficial for the FIRO price).
My idea is to pay most of the block reward to long-term investors who will hold onto their new Firos for a long time, rather than to people who quickly sell into the market for USD and drive the price down.
Very generally, long-term investors are the masternodes holders and all the others, for various reasons, tend to sell their Firos.
I think there are quite a few of us now that could probably have mod privileges to delete scammy posts etc.
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It would be good to have an âOpportunitiesâ link from the main site also to a job list section that CFC has already âgreen lightedâ projects in principle, so that itâs visible to devs that happen to research Firo etc.
Personally Iâm not a fan of the fact there is no âlockinâ period for master nodes, or some other incentive to reward nodes that stay online the longest.
So should we get Hashcloak to do an economics audit for a more educated opinion ?
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Depending on what the rest of the community feel, it may be a good idea if we can afford to.
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We have funds in MAGIC and it will not exceed 20k. Will define scope and deliverables soon.
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Sounds good. Maybe worth getting feedback on community ideas for nodenomics. Then have a poll to see if there are any clear trends that Hashcloak may like to pay particular attention to.
Your knowledge in terms of whats doable in terms of budgetary/technical limitations would be very helpful. Itâl be easier for everyone to discuss ideas of interest if we have a better idea of the constraints.
I vote for pure maintenance mode
Privacy coins are not in demand at the moment, save up some coins and wait/hope for better times.
25% dev is too high
Can we have a thread and some polls on these?
While they may not be implemented in the near future. It would be good to get community consensus, so the social contract is in place and there isnât too much controversy etc. down the road and the team can work towards implementing changes.
Personally Iâd like to see a gradual emission decline schedule with tail emission for sustainable security & dynamic block sizes for if Firo hits the big time and has to process many TXâs. Itâs not like we can say we have only 21 million coins anyway. Iâm also ok with speeding up the schedule a little, so the decline starts in September instead of a halving. This is what Monero definitely did right imo regarding addressing the issues with Bitcoin.
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Should it be three separate threads? I thought this was the thread for it 
Some of the questions I want answered are the long term sustainability of masternodes given the emission cycle and a good idea of how many masternodes we need to maintain a good amount of security.
Hello Everyone,
Mikerah from HashCloak here!
We are in the midst of working out the specific deliverables and timeline for this engagement so that the community can make a decision about whether they want us to do this work. As always, we love working with the Firo community.
In the midst of figuring out some of the deliverables, we have some questions about what would be the specific criteria to look for in order to help the Firo community make a decision about its tokenomics. Specifically, for each of the questions that @reuben outlined in the original post, what would be the criteria for a yes or no?
Right now, we have what we want to simulate and chart for each of the questions based on the responses of everyone in this thread. However, we are still missing some tasks related to what specific insights does the Firo community want with regards to this analysis.
Besides predicting future Firo prices using time series forecasting and using that info alongside our simulations, what would be quantifiable metrics that the Firo community wants to see that will lead us to be able to answer the 3 questions that @reuben outlined?
Please leave you responses below. We aim to have something more concrete by the end of the week to show everyone here.
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Here are my thoughts on the matter:
- I support extending the current tokenomics for another 2 years. This will allow the development team to continue working on key features like Spats (Spark Assets) that have the potential to significantly enhance Firoâs utility and attract more liquidity into the ecosystem.
If the majority of the community feels that slightly increasing the share for development and community funds would be beneficial, Iâm open to that as well. Itâs crucial that we ensure the core team has sufficient resources to keep delivering on the roadmap.
- Firoâs future direction I agree that Firo is at a critical juncture. We have a window of opportunity to make Firo a top privacy coin and payment system. Spats in particular could be a game-changer by enabling tokenized assets and DeFi capabilities on our blockchain.
Another interesting avenue to explore is whether Firo could pivot to become an Ethereum L2, or spin off a separate project for that purpose. With Ethereumâs high gas fees, there is demand for scalable L2s with strong privacy. Firoâs tech like could potentially be leveraged here.
- Regarding tail emission, I think @reuben makes a good point that most projects are moving in this direction, as relying purely on transaction fees is risky for long-term security. Perhaps we could look at implementing a small tail emission a few halvings down the road.
Alternatively, just follow Bitcoin on that matter. Anyway, itâs not a big topic right now IMO. Furthermore, for various reasons 
Firo already went over the initially defined maximum coin emission, so itâs not an even number anymore.
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Just a note that if we go into maintenance mode we would lose the existing talent we built up with the team which are honestly being paid below market rate ATM but remain cause they enjoy working for the project and the flexibility it affords them. Plus many of them I have helped over the years during some tough times so thereâs a friendship and loyalty there.
If we let them go, itâs unlikely to get them back and finding people with both the coding and maths background to do this type of work is non trivial.
Obviously this shouldnât be the sole reason but I think it is important to bring it up.
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The Ethereum L2 is definitely a possibility but would require fresh funding and a raise which may mean an entirely new project that is not connected to Firo directly though maybe existing Firo users get an airdrop.
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The price of firo is getting lower and lower, which is the most important question to think about, if the price is maintained at a certain level, there is no need to consider these issues.
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I completely agree this opinion: the priority is to increase (reasonably) FIRO price.
Since the ZCoin beginning, we believe that Firo price (demand) will grow thanks to the ever more promising technologies integrated into Firo. The reality is these technologies do not increase FIRO price: it only goes down. On the other hand, these technologies are expensive for the project in financing and it is so many FIROs sold, therefore a downward pressure. These technologies cost even more when they are abandoned after a few years in favor of even more attractive new technologies.
Since @sebsebzen is talking about a roadmap, it is useful to recall that the original FIRO roadmap mentioned stopping funding for developments after 2 years (from memory). I am therefore also for respecting the road map, but the original one.
If we want to do new developments on FIRO, there is a right and a wrong way to do it:
- the good one: increase the FIRO price
- the bad one: increase the block reward percentage for development.
To increase FIRO price, I recall what I recommend: increase the block reward for those who generally hold (masternodes) and decrease it for those who generally sell (miners, devs, community fund).
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I think a lot of ppl are mixing up emission percentage from total supply percentage. Emissions are much smaller even if it seems development reward is a high percentage.
Do you think 16000 Firo a month has a meaningful impact on price when we sell it in small hundred firo chunks over days ?
32,000 USD of sell pressure a month that are solely placed as maker orders. Let me put it in perspective. Today we have 2.8 million USD of volume.
Letâs say conservatively 1.5 million of volume a day. 45,000,000 USD volume a month. Letâs say half of it are sell pressure which is 22,500,000 USD.
32000/22500000 *100
Based on these assumptions, Development reward forms 0.142% of sell pressure.
If it goes towards miners and masternodes entirely, who will manage? Socials? Development? CVEs?
The clear things that dropped the price were a malicious seed investor, then several anti privacy news, ppl over reacting over a monitoring tag and a 300k firo sell wall that lasted a year and was recently eaten up. Our decentralised distribution hasnât helped. Privacy coins in general havenât done so well but we need to position ourselves to be in a position to take advantage of when privacy would be valued (such as gamefi in the last cycle).
Now that we are free from these negative constraints and I suspect the monitoring tag will be removed in due course, blaming price performance on a development reward that is a drop in a pond of one dayâs liquidityâŚthat to me is an over simplification and a flawed one.
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Also some masternodes are selling rewards too with some pointing several payout rewards to Binance addresses. Others shield to Spark.
The important question is how to increase the price? Is that from ceasing development and direction? Is it to giving it more to masternodes (which will still have net less due to halving)? What else? Will that magically increase price?
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