TL;DR How about we build the FRY generation contract so long and begin rewarding people for locking up their FRY as they would do with full governance?
Our aim has been since the onset to build Foundry as a “peicewise” DAO, meaning we want to build small, robust components, temper them in the wild, and then once they are stable, add more. Unfortunately for lots of the governance system, there is some irreducible complexity to the system. However some mechanisms seem to fall very nicely within the frame of being built “peicewise”.
Supply dynamics and FRY rewards might be a prime candidate for the “peicewise” approach. Presently the sentiment in the community (small as we are right now) is that FRY will never be mintable arbitrarily. This means a situation such as Maker recently went through where they diluted their supply to make collateral providers whole, will not be possible for Foundry. Since Maker and Foundry are two very different animals, this might be a suitable distinctions between the two. Foundry’s stated goal is to fund profitable projects and thereby increase the value of the FRY token. Maker’s is to provide a stable currency asset.
Currently my thinking is that we can build a single “generation” contract that mints and distributes a known amount of FRY on a continual basis and that this % is immutable. The percentages of where the FRY goes can be adjusted but the inflation rate cannot. This would serve to guarantee FRY holders that the value of their FRY will never be diluted away in exchange for nothing.
The generation-contract would have addresses that it can pay the FRY out to and the distribution of this can be determined by the governance contract. For instance: 50% of the generated FRY could be allocated as Governance rewards, 50% of the generated FRY could be allocated to the perpetual sale. (The perpetual sale is a continuous sale that is planned for after the initial sale of FRY)
So what I suggest is that we build the “FRY Generator” contract so long. It will immediately begin generating FRY at an annualized 10% of the current supply. This FRY will go into a Splitter contract that can then be poked to distribute the FRY to the various allocations.
We can then build another piece of the governance puzzle in the form of the Governance “Lounge”. The Lounge would be the contract that FRY holders deposit their FRY into to qualify for governance activities. The generated FRY could initially be allocated 100% to the Lounge and we can begin to pay out governance rewards before the actual on chain voting components are ready. As with the full governance, the Lounge will only be exitable after 6 months.
This will have move us along the way to full governance and might incentivize the locking up of significant amounts of FRY.
The distribution of FRY from the Generator contract could in future also have allotments to liquidity provision etc, which could prove very interesting and provide good guarantees to FRY holders that they have a market to exit into if they so choose.