SnowGem-Voting Proposals August 2019
As many of you know, we have had a very bad time in crypto after the bubble burst in January 2018. From that time, our project and most other projects have had a mass sell of and investors have gone to the stable currency, Bitcoin.
“Proof of Bears”
Most of the projects were abandoned because of many aspects, but mostly because of lack of funds. That did not happen for SnowGem and we kept on duty with our daily challenges.
Everybody can follow our #dev-diary channel on Discord to see that the SnowGem Team is still developing 100% towards our future and we already delivered most of the key features in our roadmap that we promised. It’s a signal of a strong core base and a strong signal for all holders and investors, that the SnowGem project has serious and trustworthy team members. We can say now, that the SnowGem project is now also “100% Bear resistant”.
During this bear market we mentioned above that we wanted to add more coins to dev fund which led to a negative standpoint from our community. We publicly apologized for that and promised to all of you, that we will create a democratic voting system which will help us to stay in a decentralized environment.
We worked hard these last months on this feature and finally we can say – it’s done and already implemented on mainnet.
With a voting system, the SnowGem project is now on a much higher level of decentralization than before. Every single person on the SnowGem network is now able to create his own proposal and ask the community for an opinion. Every masternode owner should vote Yes or No to this proposal to say his opinion.
We can see this type of governance system only on high-level projects like DASH or PIVX, where votes matter, and now you can use it on SnowGem 🙂
The SnowGem Team already delivered these promised features in 2019:
– Thor´s Hammer mPoW Solution
– Asgard a one-click masternode management tool
– SnowGem Crypto Company has been registered and started
– iOS Wallet Release
– Listed on General Bytes ATM´s
– Listed on trade.io
– Masternode Voting system (Governance)
– Building Offices in Czech Republic
– Ledger integration
– Credit Cards (PolisPay)
Our upcoming plans in the second half and end of 2019 are:
– Move team, especially Txid to Czech Republic
– Finish IPFS solution for our content masternodes
– Start our own VPS service solution for masternodes with FIAT and Crypto payments
– Create our own “Masternode miner” hardware (“BlackBox”)
– Finish SnowPay, crypto-to-fiat and fiat-to-crypto merchant solution
– Finish CoinGuard , a dex wallet with multi asset and credit card support.
– Finish our own Credit Card solution system
– Finish hardware wallet Masternode staking
– Finish our own Masternode staking solution, based on Asgard
And finally, there is also a major decision which we would like to start talking about and that is our own masternode Proof-of-Stake solution – if our community will accept it, we can move from PoW in 6-8 months from that date.
“Time & Funds”
Finally the most important thing in crypto is time. As you can see on other projects – if they won’t deliver on time, they have troubles. We know about this and that’s why we want to open a discussion about Superblocks for specific purposes.
What is Superblock?
Superblock is additional coins supply in a specific block which must be firstly voted and approved by the community. A Superblock gives the Core Team a chance to receive more coins upfront to 100% cover their spends on project. If Superblock is activated, all coins are counting in circulating supply. The Superblock amount is periodicity hard-coded and must be voted upfront.
Also as you saw in the past weeks, we released a full financial report of SnowGem project <link>. As you can see, we spent already over $128,000 USD in our previous roadmap which brought us to the top cryptocurrency projects. The Crypto sphere is a really fast space and as you can see, our ambitions are really high.
Our project isn’t financed and never has been by a major investor. We are using only our own personal finances from Core Team members and also dev fee, which is actually ~60k XSG per month which is not sufficient for what we are planning. There are a few ways to increase dev funds but many of them didn’t work well in the past.
We decided to ask the community for a proposal for the upcoming 12 months to have 4x 250000 coins in Superblock which will cover:
– Core Team salaries
– Office/Legal expenses
Also we will leave 7.5% dev fund in our block. That will lead to a massive income of funds for the project which will speed up SnowGems progression.
We understand, it’s a big step and that’s why we also decided to NOT ACCEPT this proposal if vote will be not more than 80% of all votes.
“What if NO happen?”
Well if a massive NO to this proposal happens, or we won’t see more than 80% of votes, we will continue anyway with our mission, it will just take much more time and efforts to bring us to a wider audience. Nothing is lost then and we are also prepared for this situation.
“When it all starts?”
This proposal starts on 20th of August 2019 and ends on 20th of September 2019. There are 30 days for a vote.
Please try to join this very first community initiative and say your opinion also on Discord, Telegram or Twitter.
Voting Proposals (August 2019)
As you all know there has been a lot of discussions on SnowGem Discord server regarding the upcoming votes, so as promised we wanted to clarify the reason for these proposals. We will go over them one by one, just remember you can use your votes on all of them, so for example if you vote yes for the “Superblock”, you can also vote yes for the “Block Reward Change”. That would not mean if the “Superblock vote” and the “Block Reward Change vote” are agreed upon that we will implement both of them.
- Voting proposals are now visible and prepared on blockchain.
As previously stated the “Superblock vote” will need 80% of the used votes to be agreed upon. The “Block Reward Change vote” will pass with 51% of used votes. If for example the “Superblock vote” receives 81% of the votes and the “Block Reward Change vote” received 85% of the votes the “Block Reward Change” will be implemented.
All the proposals will be activated on the same day and will be open for 30 days. If you have multiple masternodes you will not need to vote multiple times, your vote will be counted by the amount of masternodes you have setup in Modern Wallet
Just remember you can and should cast your vote for all of the proposals.
Why we are proposing votes for additional funds
The reason for “Superblock proposal” and “Block Reward change proposal” are same. So there is no need to specify the reasons in both proposals.
Reason #1 Running Costs
Running a project that aims to compete in this cryptosphere is not easy task. From day one this project has been funded by the team members, mostly in the beginning @Txid funded it by selling his own portfolio. During this bear market the majority of the costs has been also paid by the core team members. This must be changed.
Most of the expenses can be seen in the link below:
Reason #2 Speed up Development
We would like to be able to speed up the process of development, as of now we are working as fast as we can but if we want to compete with other projects, it must be way faster then now.
Reason #3 Direct Selling
We are implementing a way to directly sell to investors through ATM´s and via SnowPay. With fiat on company account, we can work much more efficient and without stress.
Reason #4 Raise funds for external contributors
If we take for example: We would like to be able to more securely store our coins while also keep our masternodes running. This will only be done by doing the work with a person who is used to work with Trezor/Ledger. But hiring somebody to do this is not free.
In that case, raising funds will help us bring more experts in SnowGem dev team. We can be much more competitive then.
SnowGem Voting Proposals
First of all the Superblock is not a single superblock. They are in fact 4 superblocks that contain 250.000 XSG. They would be paid 4 times over the course of a year. The first payment happening shortly after the end of the vote, or on the same block as the vote might be finished days before end block.
To clarify some of the concerns people have, we are not going to dump these coins on exchanges, we have multiple small investors that are looking to buy coins to keep for a number of years. All the coins will not be sold instantly
#2 Block Reward Change
Now the biggest change by implementing the Block Reward change is that the miners drop to 30% of each block, we will also add the Treasury, the function of the treasury is to pay for expenses of micro assignments or jobs. For example we post that we need a translator to translate the Whitepaper to Spanish, there will be a set rewards for that and it can be claimed by any person who can accomplish the task.
Actual block of 20 XSG is split up in the following way:
- Masternodes get 9.25 XSG (46.25%)
Miners get 9.25XSG(46.25%)
Devfee is 1.5XSG(7.5%)
If the Block Reward change is accepted the Block will split in the following way.
- Masternodes get 10 XSG (50%)
Miners get 6 XSG (30%)
Devfee is 3 XSG (15%)
Treasury is 1 XSG (5%)
We are working on methods and products that will fund the project in the future so the proposed change to block rewards might not be permanent.
#3 Proof of Stake
Now the most controversial proposal of all from a group of controversial proposals is our switch to Proof of Stake. Just to make it clear, this is a proposal that is pretty open ended, we would start working on a solution to make the switch to Proof of Stake.
For people that are thinking about how the Reward Scheme would look if we would go to Proof of Stake, it would most likely be as following. 80% to Masternodes and 20% devfee.
The ratio of how the 80% will be switched between Masternodes and the ContentNodes has not been decided.
The view of the team was Proof of Stake would eventually be the way SnowGem would move forward but we have always looked at the 40M XSG mark. But as the Cryptosphere changes we must adapt. Moving to Proof of Stake is not and would not become a priority by us if the proposal would be accepted, we have more work to complete before we can focus fully on this. We want to know if the community wants us to put this on our Roadmap for 2020 as this would take many months and a whole lot of testing to be completed successfully.