Symbol Launch - NIS1 Future Strategy Recommendation

NIS1 FUTURE STRATEGY

This is a joint message for our community on behalf of the Symbol Migration Group, composed of The NEM Foundation, NEM Studios, NEM Ventures

Translations:
Japanese: Here.
Spanish: Here.
Russian:Here.
Italian: Here.
Chinese: Here.

Release Date: Monday 30 March 2020

THIS IS A DRAFT PROPOSAL.

Full Document: NIS1 - Future Strategy Proposal

The document has been created from various working documents, meetings and conversations. Its purpose it to pull them into a cohesive proposal and it has been reviewed by the Migration Committee, Core Developers, Tokenomics Working Group and a Focus Group of SuperNode Holders, all feedback as been incorporated.

Context

As part of the various recommendations for Symbol Launch and the Tokenomics in late 2019, it was identified and communicated to the community that some changes may be recommended to ensure NIS1 remain viable and sufficiently supported ongoing.

These changes are in recognition that NIS1 is expected to continue to be a viable network and chain for years post Symbol launch, we know some projects and holders will not migrated immediately or will claim Symbol tokens but continue to use NIS1 for some time post launch. NIS1 is also used to allow post launch opt ins by anyone who did not claim their Symbol Tokens prior to launch.

This proposal suggests options and a recommendation for some discrete changes which can support this viability.

Summary

The proposed changes can be summarised at a high level as:

  • SuperNodes: Extend the SuperNode programme by 6 years in its current form

  • Technical:

    • Open source NIS1 and include work to bring it up to date, plus testing
    • Scope data access layer for NIS1 to present data like Symbol
  • Core Funds: Burn 600m XEM from core funds over 6 years

  • Nodes: assure node numbers through multiple approaches (see doc for details):

    • Supernode programme
    • Symbol ecosystem bonus programme
    • Nem entities, Service providers and investees being required to run nodes
  • Other: Mandate the below, execution/delivery vehicles to be decided, in a complementary way to how they are happening for Symbol.

    • Creation of a differentiated but complimentary brand identity for NIS1
    • Facilitation and support of community initiative around NIS1 to transition from entity support to an open source community approach
    • Creation of and transition to a community based governance model (DAO, tokenomics, bounty payments etc)

The full proposal can be viewed here and comments added in the document or on this forum post.

Next steps:

  1. Leave the document open for some time to capture feedback
  2. Put the proposal to a PoI vote
  3. Implement the suggestions (assuming it passes 2)
11 Likes

Also, here is the Japanese article on the NIS1 Future Strategy from our friends at CoinPost.https://twitter.com/coin_post/status/1244772374576107520.

Chinese article about NIS1 Future Strategy:
http://www.itechly.com/articles/2296.html

1 Like

No single reply since March 31 on this thread. Can clearly see that there is very less or no more interest in NEM NIS1. Only those who already built on NEM NIS1, and cannot (or for whatever reason do not want to migrate) migrate would pay attention to NIS1.

To me, if resources are available within the core team capacity (I doubt anyone else or any other team can do), NIS1 should be open source as soon as possible, the ability and speed to keep it up to date and test is a concern. Seems like keeping it close source is the only way to keep it safe?

1 Like

There have been some comments into the document itself.

The primary thing that should generate some interest and motivation at least from SuperNode holders is that the rewards run out in late Aug/early Sept and given Symbol doesnt go live until after that, its “probably a good idea” to resolve that issue at least.

Would love any further input on this

2 Likes

IMO,Supernoder reward should be extended for at least 6 years, and after Symbol comes out. NIS1 should also keep technical support for 6 years

2 Likes

It would be interesting to manually kick off the proposed symbol block rewards schedule when nis1 supernode fund runs out, ahead of symbol launch.

This would mean using a bot on nis1 chain to broadcast 1 transaction per block that contains a fee based on the proposed schedule for symbol block rewards.

At the snapshot there could be a couple options for nis1:

  1. End the nis1 block rewards and return to normal supernode activity
  2. Keep the block rewards on nis1 mirroring symbol and completely discontinue supernodes
  3. Keep both block rewards and supernodes running on nis1 by refilling the supernode fund from core funds

When symbol launches, symbol block rewards would continue from where it was left off at the snapshot in line with the proposed block reward schedule. If there are a number of months between supernode running out, and symbol launching, it would highlight the yield/return for symbol ahead of launch while giving users significant incentive to get involved pre-launch, testing harvester and node owner appetite for the new block fee schedule ahead of launch.

Essentially we would be starting the symbol block rewards before the launch of symbol, using nis1 as a proxy.

Interesting proposal, I like it. But the block reward should at least match the supernode rewards imo.

My proposal would be to continue the supernode program as it is untill the snapshot. And then 2 ideas:

  • Increase the daily funding right away
  • Or, Increase the daily fund gradually until a maximum for 6 months
    After this gradually reduce the rewards for 6 years
    All this funding should be secured at the announcement of the approval of this

I’m not sure of the number of blocks a supernode harvests per day, but roughly I think a supernode should harvest at least one block per day. The block rewards schedule outlines that initially, and for quite some time thereafter, 1 block reward is significantly higher than what 1 daily supernode payment is currently. This would mean that ending supernodes and starting the block reward schedule would be more profitable than supernodes currently.

I checked a supernode, and it was 2,5 blocks/day for the previous 1 year.
Using the current total supernode rewards per day of 140000XEM that would work out to be 140000XEM/3600blocks = 38,8 XEM/block
A supernode would get 38,8 x 2,5 = 97 XEM/day
To be the equivalent of the current supernode rewards you would have to raise the daily reward from 140000 XEM/day to roughly 620000 XEM/day.

So as you said, this would be undoable as a short term solution until snapshot.