What is Niubi Governance and why do we need it ?
Intro about Niubiswap
Niubiswap is a decentralized exchange, automated market maker yield farm, aiming to become a decentralized autonomous organization (DAO). More precisely building DeFi services as an autonomous company (DAC) investment fund, while leveraging the Binance Smart Chain, and focusing Asian market as the main strategy.
Chinese founders with Fair-launch and early community-exit strategy (by Vitalik) and community-driven strategy
Like any other project, Niubi has a founder team, administrators, contributors, and shareholders. Niubiswap was designed and built with a real fair-launch strategy aiming to have a fully decentralized organization where NIU holders would participate in the decision-making process. The founders’ team goal was to participate in this fair launch, bootstrapping the foundation of the Niubi project, and supporting initial development for a further “community exit” (https://twitter.com/VitalikButerin/status/1296963994637316096) strategy with natural dilution and the wide token distribution, providing the project with a strong roadmap focusing Asian countries and communities.
Only 25000 NIU were initially minted and half of it distributed to early team and founders (Chinese team behind Niubiswap who invested to start it, with French, US advisors and anonymous devs on Binance Smart Chain). No ninja mining, no secret allocation with only 15000 NIU reserved to the team (very low considering 300000 NIU printed/day) and daily 9% on the Niubi Dev Fund stayed untouched since the beginning to prove Niubi founders fairness and intention to BUILD long-term.
Already decentralized after one week
Approximately 300000 new NIU tokens every day, NIU is being distributed to early farmers, newcomers and the founder team as well as the Niubi Dev Fund account (minting about 9% of all NIU token) are already diluted. The founder team might own less than 5% of total NIU supply. Hence, the Niubiswap organization is now considered decentralized (not owned, or managed by a central authority) as regards to the token distribution. It’s in the NIU users interest to consider that we are all part of a decentralized and autonomous company and building this together as partners. The project should then adapt accordingly and set up an open-decision making process.
As servant of trustless and highly decentralized financial infrastructure, Niubiswap organization aim to commit to the initial Ethereum’s vision, to the ideals of permissionless access, security, and immutability, all indispensable components for a future where anyone in the world can access financial services without fear of discrimination or counterparty risk. We want to achieve this in a P2P and decentralized way.
AMM DEX is a unique opportunity to build new decentralized and autonomous organizations with unique strategies and models. Niubiswap is experiencing one we think is the most secure design to achieve this goal. In a crowded marketplace with multiple competitors, Niubi offers critically important benefits, two of which are;
● community-driven development
● fair and open token distribution
Why is it important and why other projects might fail while Niubiswap will succeed in the game ?
Open decision-making and collective intelligence are our secret ingredient to success in a dynamic and competitive market. We need to quickly adapt to the competition, and be able to leverage collective intelligence and open contribution by being fully inclusive and incentivizing participation of talents with all possible inputs.
Other Yield farming competitors will become more decentralized and diluted, they will be abandoned by owners without any possible solution because they will lose skin in the game, if not setting up a real governance and community-driven strategy all WILL ALL END UP with exit scams. (No skin in the game = scam = resulting in abandon ship if no rugpull)
More traction, more R&D, more risks, raising the question of transparency, governance, token economics and centralization; Niubiswap is focusing on solving those issues by-design with a decentralized and community-driven strategy. Featuring a native governance token called NIU that is fully community distributed, decisions will be taken by NIU holders in a DAO Gov platform, we are partnering with the famous Snapshot using weekly polls. See [Niubiswap Governance]
Teaching users: Niubiswap should be committed to educate users how DeFi and Yield Farming works. Educated users become valuable shareholders as they will be able to contribute to the strategy, development and marketing plan with their talent and networks. As soon as they understand the underlying principles, mechanism, of a decentralized and autonomous company, they can contribute to it, as NIU holders and shareholders.
Faster than Expected. Time to Decentralize.
To reinforce the project’s commitment to being created solely for the benefit of users, Niubiswap is following a fair launch model with its governance token (NIU). However, while NIU will enable all the governance activities of Niubiswap, and therefore its future development, governance proposals were supposed to not start until one month after the launch of Niubiswap. This waiting period of one month was to ensure that enough NIU is distributed to the community and that the Niubiswap foundations and governance model are set up correctly for decentralization.
After one week, we realized that things are going faster than expected. The community took over the NIU tokens and some huge investors and early believers jumped in. Considering current NIU token price and its distribution, we think it’s the best timing to start the governance process and community-driven strategy.
Lessons in Skin in the Game from Nassim Nicholas Taleb
Skin in the Game: Hidden Asymmetries in Daily Life is a 2018 non-fiction book by Nassim Nicholas Taleb, a former options trader with a background in the mathematics of probability and statistics.
Taleb’s thesis is that skin in the game — i.e., having a measurable risk when taking a major decision — is necessary for fairness, commercial efficiency, and risk management, as well as being necessary to understand the world.
● Decisions should be made by the people who will personally benefit or suffer, based on their outcomes/consequences (i.e., people with their skin in the game).
● Skin in the game is not just an incentive problem; it’s about upside and downside risk, and having symmetry in both.
● Niubiswap users, hence NIU token holders will personally benefit or suffer from the decisions. Those decisions should be taken by NIU holders.
Niubi current token economy
300000 NIU per day
60% to Niubi Zone (FARMS)
30% to Hongbao Zone (POOLS)
10% to Niubi Dev Fund (currently managed by the chinese core team, will progressively be managed by YOU, NIU holders) : still untouched from day 1. 0$/0 NIU sold !!!
on those 30000 NIU/day,
20% Dev Fund reserve (6000 NIU)
10% Team & Op (6000 NIU)
10% Daily Special lottery (3000 NIU / 50% for the winner — 50% burned)
10% Burn from Dev Fund (3000 NIU)
40% Investment Fund to reward Hongbao (12000 NIU)
Dev Fund reserve, Team & Op represent 12000 NIU per days,
6000 currently distributed to the Niubiswap developer, and me, Niubiswap strategist as contributor.
The Chinese team is not touching any NIU for the moment and holding to build a long term project.
It means we have 6000 NIU/day to distribute to Niubiswap contributors, developers, designers, marketers, as a decentralized and autonomous company, we will decide collectively how to use those funds.
We will progressively give governance on the investment fund as well to be able to catch any sound opportunities to give more rewards to our NIU holders, and Hongbao stakers.
Niubi Open decision-making
If you imagine a spectrum of decision-making philosophies, where one end of the spectrum consists of a closed approach involving few people, little or no input, and decisions that are made in a hierarchical or autocratic fashion, and where the other end of the spectrum represents an open approach involving many people, lots of input and consultation, and a more bottom-up approach. The philosophy we advocate is very near the open end of the spectrum. The basic philosophy is that the most reliable way to make good decisions is to capture the collective wisdom of a large group of people rather than relying on one or a few people. In order to do this, the decision-making process must be highly inclusive and it must allow consensus to emerge where it exists.
The open decision-making approach includes elements that many people find counterintuitive or contradictory to their “upbringing”:
● Consensus is easier to achieve than you might think.
● You don’t have to control decisions as much as you think.
● Encouraging controversy early in the process results in better decisions and less controversy later.
Ideally, the process used for making a decision should produce three results:
● Make the best possible decision. Given the information available, the decision process should make the choice that produces the best results for the organization.
● Do it efficiently. The decision should be reached quickly and with reasonable expenditure of time and effort.
● Get buy-in for implementation. It’s important that people in the organization believe in the decision; if not, it is unlikely to get implemented effectively.
● Steps to a Decision
Open decision-making involves four steps
● Collect input
● Facilitate consensus
● Announce the decision clearly
● Don’t reconsider the decision unless there is significant new information
What to decide ?
● Global strategy
● Niubi Dev Fund allocation
○ Team & Op (6000 NIU/day)
○ Development (6000 NIU/day)
○ Investment Fund (to rewards Hongbao NIU stakers and NIU shareholders) (12000 NIU /day)
● New features
● Setup parameters / fees / % / allocation / multipliers / etc.
When and how do we start ?
Right now, every day starting from tomorrow, we will publish several proposals to vote, and decide collectively how to spend the dev funds and validate all our decisions and strategy by the community. If voted with more than 60%, proposals will be executed after
● specs validation
● cost estimation
● contributor hiring/ selected by community (Worker Proposal)
The current founder team has several resources and contributors, including independent developers, designers, marketers, and more. We are able to manage the next steps, but all talents are welcome to participate in the Niubiswap ecosystem by submitting worker proposals, or suggestions on the Niubiswap Governance.
The whole process will be supported by qualified strategists including the current team.
Discussions using Telegram and Discord
We decided to use Telegram Channel to track each Official proposals and Telegram Group to open discussion. Discord will be used for more serious conversations with direct contributors and builders. For each official open proposals:
● dedicated Telegram Channel
● dedicated Telegram Group
● dedicated Discord channel
Snapshot DAO quick guideline
Partnering with the famous Snapshot app with our own Niubiswap space to manage our DAO. Every NIU Member will be able to participate in the governance process using their wallet and NIU token to vote on Snapshot.
We will start with:
● Official Proposals: made by initial support team
● Worker proposals: to respond to call for contributors, for specific mission or any spontaneous application
● Suggestions: bring your nice ideas, and get it voted by the community and implemented, get rewards/tips for your contributions
All contributor posts should include the author wallet address, with the following.
“To tips my contribution, send NIU to 0x…………”
The community will be then able to vote and tip best contributions to the Niubiswap strategy. Later we will implement a social media layer to facilitate these users interactions and support and a contributor Leaderboard.
Next proposals and Niubi Strategy
By order of priority, we need to work on Governance setup, deflation mechanism, incentive to hold NIU / utility, marketing and dev strategy.
Detailed Niubi Governance Process
(17–21 March) This is just the first announcement. The whole gov process will be fully detailed in the next few days and posted in Snapshot platform to be validated by NIU holders.
Deflation Mechanism
(est. 18–22 March) Our best strategists are working on a deflation mechanism proposal for the community to vote, this will include a plan for print rate progressive reduction, as well as many features we can quickly implement to add a burning mechanism. This can be implement right after the vote
Incentives to hold NIU / Token utility
(est. 19–30 March) Each feature will be fully explained, discussed and voted. We are also hiring more developers and resources to contribute to the project.
● Special Hongbao: stake NIU earn other tokens (reward stakeholders with investment fund, dividend-style)
● Lottery: bet your NIU, win NIU. (burning fees)
● Games: spend your NIU on games
● Daily special lottery: everyday a special winner
● Investment Fund strategy to reward NIU
● Social media / community layer: use NIU to post your contribution blog, comment, discuss about NIU, tips other users
● Niubi launchpad : Asian communities yield farming generator, with embedded NIU token utility, pairs, pools, audit, starting liquidity. (similar as Layered farming on GooseDefi but backed up by real projects, communities who will fork our Niubiswap community-driven model)
● Niubi launchpad status holding incentive: (bronze/gold/platinum) + access to Asian Yield Farm presale
Marketing and Dev strategy
(est. 20–30 March)
Starting from April we will develop voted features.
Let’s start this Community-driven project. NIU holders.
