Dear $VOX community,
Our platform was set out with the promise of being a deflationary low-emission yield-farming platform. We believe we’ve introduced a unique proposition to the table with the launch of the Vox Finance ecosystem.
However, the initial token economy plan and projection we had created in October last year has only been semi-successful. While our token has provided a secure & reliable platform for users to stake, farm and gain passive income with vaults, the economy projection was not able to follow what we had foreseen.
This has happened due to many reasons; some within our control, others are factors we can not change anymore. With this article we would like to explain on the events that lead us to this point, offer our solutions up for discussion and provide a development update of the Vox Finance ecosystem.
Our token economy projection first estimated a max supply value of 4,500 tokens with stable emission cuts — as we quickly realized after our first emission cut was carried out at the end of October last year, such a model was faulty from the very beginning. The stable and high APYs was what brought many investors to VOX and was also the reason why they stayed supporters.
As the return rates fell lower with each emission cut, so too shrank our user base and buying volume and has continued in the same trajectory until our launch of the stablecoin swap platform.
The community responded with sound suggestions:
- burn rate adjustments (sell-side burns only),
- locking periods,
- limiting the claiming of rewards and others.
Most of these were ideas we had thought of as well, but unfortunately these factors can not be altered due to the constraints of blockchain programming. To introduce any of these changes would require a complete reboot of the token and master contract — meaning a complete migration would be needed or a completely new start.
Our immediate decision was to cancel the emission rate cuts and introduce a higher max supply — this is only a temporary fix and something must be done quickly about it, as many community supporters have already mentioned.
Binance Smart Chain platform
Something that has been continuously mentioned by the community in the previous weeks is also the state of our token bridge and liquidity on Binance Smart Chain. To explain the troublesome nature of the cross-chain offer we need to set forth some details:
- VOX has no more project treasury or any kind of backing,
- Liquidity in JulSwap was deposited at the price of approximately 2,000 $ per VOX token,
- The entire circulating supply is in control of the market.
If we would want to build an entire platform on top of BSC, this would require us to more than double the current mint rate of the master contract which would quickly bring us to the max cap of 10,000 VOX tokens.
Furthermore, to enable rewards on BSC and to offer staking & farming would require us to mint an even larger amount of tokens — all of these centralized through the project treasury. This would be a big step away from the decentralized and community-oriented approach of the project. However, something similar might be needed to bring the project to a new stable ground.
The solution moving forward
As our sixth community vote has clearly shown is that the VOX platform has very active and loyal supporters who bring many new ideas to the table. We’ve been closely following the discussions on our governance board and social media channels. While increasing the mint rate only short-term might bring another temporary solution with more liquidity for BSC and marketing funds, we need to immediately look forward for a permanent solution.
That is why we would like to open for discussion the following ideas:
Max supply and mint rate
We are slowly but surely approaching our max supply cap of 10,000 VOX tokens due to low trading volume. We have seen some in favour of rising the max supply to any number between 20,000 to 100,000 VOX while others have suggested lowering the mint rate. In our opinion, lowering the mint rate will drive away the user base that we currently have and create even more mayhem.
In the next few days we’ll open the next community vote — perhaps the most important one in the project’s existence.
Our proposal is the following:
Vox Finance is a deflationary low-emission yield-farming project with a unique twist. Why do we not continue it in the same fashion? If we are to increase the max supply cap every 2 or 3 months, the project will surely lose all of it’s credibility.
- Option #1: Remove the max supply cap of the project (or set it at a high number such as 100,000 tokens) while keeping the same mint rate.
- Option #2: Completely stop minting of tokens once supply reaches 10,000 tokens and wait until a significant amount of tokens is burned due to trading and continue with farming thereafter.
From our experience, users will join the platform if they see a good APY rate in the farming pools and long-term sustainability of the rewards. Therefore we would suggest moving in the direction of option #1.
Expansion to other blockchains
Another topic we have been following closely is expansion to other blockchains. A higher supply and larger freedom would not only enable us to build an entire platform on Binance Smart Chain, but on several other blockchains such as Cardano, Huobi ECO chain, Polkadot and Avalanche.
Providing liquidity would no longer be a problem and a much larger audience would be available which would drive in new investors. In order to be able to do so, the developer rate would be increased to approximately 20–25 % and the acquired funds would immediately be used to distribute rewards on other blockchains which would keep circulating supply low.
The development of our mobile application is currently underway and beta access should be available in the span of the next 2–3 weeks. We believe that an expansion to other blockchains would allow even more use-cases for the app and provide a truly unique mobile experience where users would be able to access the Vox Finance platform from one app while accessing funds on several platform such as Ethereum, Binance Smart Chain and more.
We hope that this article explains the thought process happening in the background of the project and presents clearly the issues we have faced in development of the ecosystem. While major updates are not possible due to constraints with the smart contracts, a lot can still be done if we can unite and vote on the next steps of the platform. After all, that is what this project is all about — the voice of the people.
Much has changed since October 2020 and we will face many more hurdles as we move forward. Crypto is an evolving and highly competitive area. That is why we must act quickly and decide upon the changes that will be brought into the Vox Finance ecosystem.
Whether we accept a low-emission unlimited supply approach or a complete cancellation of minting is in the hands of our community. Whatever the result will be, the voice of the people will decide and our decision will make us unique in the world of decentralized finance.
About Vox Finance
“Vox Finance is a decentralized finance (DeFi) project developed by an independent team of developers, seeking to bring an innovative approach to the new emerging market by providing high-quality and profitable services while relying on the voice of the people to bring in community engagement to the underlying protocol.”