Income suggestions
A list of income related suggestions
The income analysis has compared a number of approaches that help with improving how treasuries can generate income to become more self sustainable. The following is a list of some of the most promising approaches that have been identified.
1. Short term treasury income - Genesis allocation
There can often be a relatively low number of transactions in the short term for new ecosystems. This makes transaction fees a difficult approach to generate income for the treasury in the short term the amount more use cases and adoption has increased. A genesis treasury allocation can give an ecosystem some initial funding to pay for the contribution efforts involved in making network improvements, launching new projects and growing the community. A genesis allocation is not as suitable as a long term income solution as eventually the funding will often be used to pay for contribution efforts that improve and grow the ecosystem. Relevant resources:
Income approachesIncome2. Long term treasury income - Transaction fees & Reusing inactive assets
Transaction fees are the most important long term income source for treasuries. An ecosystem will need to generate enough growth and adoption to increase the volume of transactions so the network can become sustainable. Another supplementary income approach that could also be useful for the long term is by reusing inactive assets. People can lose access to their funds for a number of reasons such as forgetting a password or pin code or from passing away without sharing your details to a family member or friend. Assets that haven't moved for a long period of time could be reused as a source of income for the network. This prevents a fixed supply network from becoming deflationary over time due to the loss of user assets. Relevant resources:
Income approachesIncome3. Transaction fees - Fixed & percentage fees
Transaction fees need to be fair, sustainable and stable at scale. Transaction fees impact how people use a network on a daily basis. Adopting an approach that mixes fixed fees with percentage fees can help with combining the best elements of these fee approaches. A minimum fixed fee can help to protect the network from spam attacks due to the minimum cost of trying to attack the network. Percentage fees can help to ensure that the wealthiest individuals aren't given an advantage over the poorer individuals as everyone would need to pay a proportional amount in fees based on the value of the transactions they are creating. Relevant resources:
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