Blockzero Labs

Implement a cap of 750,000 XIO for bi-weekly compensation to Core contributors.

Goal

• Reduce XIO inflation
• Protect against the downside of a spiraling token price

Problem Currently, if XIO is to go down in value, we have to pay more XIO tokens to Core Contributors. While this is not currently a massive issue, it is something that could spiral inflation quite quickly if we do not implement a contingency plan.

For example: at $0.10 and $100k/monthly, this is 1M tokens hitting the market on a monthly basis. Assuming a 40M circulating supply, that is roughly 30% inflation per year. Here are some more examples to show how quickly this can get out of hand.

• Token Price: $0.05 = 2M XIO tokens per month = 60% inflation
• Token Price: $0.025 = 4M XIO tokens per month = 120% inflation

In the bottom example, we would run out of XIO tokens from the treasury in less than 1 year.

While we are fortunate to have stable coins to backstop a super bad spiral, it is something we need to get ahead of in preparation for any market conditions.

Solution If we remain below 750,000 XIO in bi-weekly compensation, everything stays the same.

However, if we go above this, this is what would be expected to happen.

• Person A Compensation / Total Core Compensation = %
• Take this % and multiply it by 750,000
• This number is what Person A would be expected to receive
• If Person A would like more XIO to make up for this difference, they would need to make a request for capital from the Blockzero DAO

Essentially, this ensures we are not paying more than 1.5M XIO per month.