Monthly budget limitations for community projects


#1

This idea is aimed to make out of SmartCash more robust and stable financial asset.

Task: achieve better price stability and better image in the eyes of potential users, businesses and add to price stability. Avoid value and reputation losses.

Solution: certain limitation of monthly community budget spending in conjunction to monthly trading volume over all non zero-fee exchanges. Simply speaking, community projects should not be priced more than liquidity allows.

How to calculate the exact numbers? Probably, collective thinking may result in some viable rules.

Further progress: for projects exceeding available monthly budget spending there may be an option with delayed payment solution.

These are just initial thoughts that ideally be developed into something elegant and efficient with help of experienced economists. I think, the solution is a must in the future, yet it may already become a good development starting from here.

If community projects aren’t price-limited, one day SmartCash may see a seemingly awesome expensive project approved by the vast majority, yet being a worst investment ever as most of SmartCash users aren’t intended to be professional investors. This may result in significant price swings, value depreciation and reputation loss. In order to avoid this, any project should be limited in price as community budget is enormous even in comparison to all smart in circulation.


#2

Again, interesting idea. Maybe I am missing something, but shouldn’t the voting take care of this? In think in the current situation with low liquitiy, I am quite certain that a 100k+ USD project would not be approved by the smartcash voters, unless the majority of smartvotes strongly believes that the project will have a higher benefit that what it costs. Plenty of NO votes lately.

One area where smartcash can further improve is marketing. So if there is now a proper large scale marketing project utilizing a proven method or public figure that potentially would help to get the well deserved attention to smartcash. Would then this not be a good time to approve and execute it?

Instead of right away blocking costly projects, how about discussing whether the project shall be split and the community shall vote after the 1st phase is completed if it shall continue with phase 2.

Also a further option for the community fund is (similiar to some other projects do it), place a certain percentage into escrow and have it locked in for a defined time period. The Smartcash community fund shall last for years, and smartcash is a long term project, so why not then lock away parts for 5 years and other part for 1 year to highlight that the funds are SAFU and long term progress for smartcash is secured. As of writing there are 955,550,909 smart in the community fund. For whatever reason we should not be using all this year :slight_smile:


#3

I think it is a good idea.