This topic has been created for the Eco Trustees to discuss the monetary policy that will be enacted on Friday November 24th. As always, the policy will be in effect for two weeks — this is for Generation 1028, which runs from November 10th - November 24th 2023.
Trustees are encouraged to post via replies under this topic to:
Discuss what policy they have proposed and/or are voting for, and why
Engage in public dialogue/debate with other Trustees
I will continue to vote for a high APR this cycle, we don’t have a strong response from current holders, so I think it’s a good idea to keep rates high (20-25%) for some time before evaluating and preparing for the next step.
Not sure about jumping straight to 30% and rebasing 5% at the same time as Pure Macro suggested, the previous 3 rebases didn’t produce any results so I’d rather be a bit more cautious.
ECO
A key question for Trustees in the context of monetary policy decisions: What is ECO? A high-yield, debt financing instrument; a dividend yielding stock; money for transactions; a crypto asset, an equity, or some combination of each?
This is fundamental as holders have a range of assets, their uses, and expectations for holding ECO. For trustees, setting rates and supply requires comparing alternative assets and consistency with the purpose of ECO. Furthermore, ECO is likely to evolve through stages for end use of the currency and adoption along with the overall environment for digital finance. Appropriate comparators will evolve over time as well.
An argument can be made that at this stage— when end use of the currency is limited—that holding ECO should be encouraged and compensated through high-yield. However, the elasticity of adoption is likely to be low requiring very high interest rates, raising concerns that such yields are unsustainable or worse reminiscent of failed crypto projects. Furthermore, it could be argued that locking up ECO works against secondary market price discovery and its use for other transactions.
More fundamentally, trustee should consider monetary policy setting in keeping with the vision of ECO becoming a basis for supporting merchandise and peer-to-peer transactions. This vison has made a huge step forward with the development of Beam. Perhaps then holding ECO at this stage is an investment in this vision. The payoff therefore is more akin to holding equity in a small cap company in its early development. If so, that would argue for a zero return for ECO.