Phonon Brief: Week of Dec 24 - Dec 31
Happy New Year Phononers (lets workshop that),
Welcome to the first edition of The Phonon Brief. This brief is going to aim to give the broader community a look at what has been worked on and discussed each week in the Phonoverse. Published every Friday as a recap for those of you who manage to get offline and go outside.
Jumping in…
PhIP-00 Recap
On Dec 27th a forum post asking users to nominate themselves as part of the Phonon DAO Bootstrapping Group (PDBG) was posted. This nomination post came in accordance with the snapshot vote and previous formal governance proposal, PhIP-00. This proposal asked the community to give a group of 12 members defined responsibilities and powers to:
Create an initial Infrastructure for the DAO (overall mission statement, initial roadmap, working groups, DAO delegates, etc.)
Motivate GRID holders to convert their tokens (i.e., the goal is to have 60% of GRID holders convert their tokens by January 31, 2022).
Propose liquidity boosting activities on decentralized exchanges, and explore options for listings on CEXs when necessary and appropriate (without giving CEXs undue influence over the governance of the DAO and ensuring the DAO has financial resources required for long-term operations) for community approval
Ensure trusted community members are added to the DAO Treasury multi-sig t o decentralize Treasury operations
Engage in prudent and appropriate marketing of the Phonon network to raise awareness and interest
The initial term is 3 months then the PDBG will be dissolved and the working groups will take over. Read more discussion related to this here.
The final list of nominees is still being voted on via liking a nomination comment. If you want to nominate yourself or vote for others please do so soon as the polling period will end shortly.
Liquidity Bootstrapping
The early weeks of the DAO have been consumed a lot of time talking about the best way to get GRID holders converted to PHONON and how to initiate some larger liquidity pools. This week was no different.
On Monday, Dec 27th, the liquidity working group met to discuss some options that floated around the discord from the prior week. On the call we heard Justin Bram from Ondo, talk about how Ondo can provides vaults that give DAOs the ability to create liquidity with their native token. Then Alpaca Fan gave us an overview of the KPI options of liquidity mining through UMA. The group as a whole also discussed a traditional liquidity mining option via a Geyser contract that has been used my many projects to provide fixed LP incentives over a period of time.
The next day, community member Davoice321 posted a strategy explanation on the Phonon Discourse which called for a vote of which strategy the cumminity was in favor of. He details the most popular options, Ondo LaaS progrom, the Geyser contract, and a hybrid approach. Members of the community shared their input and casted their vote. The Ondo option is currently leading and a formal proposal for this options is currently being drafted. From that point it will go out to a Snapshot vote to be ratified by PHONON token holders.
Keep an eye out for the Snapshot vote early next week!
Read about Ondo’s LaaS offering here.
Other News
Dr. Karl Kreder is working on an article going over his vision and explanation of certain areas surround Phonon. Next week be on the lookout for an AMA in the Discord.
Out of the implementation team, Dan and Nate have been sick all week. Karl is working on a series of posts coinciding with the release of all the repos and the dev kits. Optimistically hope to have some of this starting next week.
$PHONON Financials
For now there is not much to report on this topic.
Contract address: 0x758b4684be769e92eefea93f60dda0181ea303ec
Max token supply: 10,000,000,000
Redeemer Address: 0xfdcc959b0aa82e288e4154cb1c770c6c4e958a91
Redeemed: 2,092,264,201 = 8,535,885,562 - 6,443,621,361 (as of Dec 29)
Only 24.5% of GRID has been redeemed.
ConsenSys and the Founders have not redeemed their portions yet. This will equate to 1.2b PHONON
(Active) Treasury Address 1: 0xd90b33936a40418271584aab190c4bbe7fb95e2b
Holdings:
PHONON - 732,057,218
(Vesting) Treasury Address 2: 0xbcfb07c16af74a1b1db7fea7fc9605d3f649500f
Holdings: 732,057,218 PHONON
Vesting is a four year linear vest.
Notable Addresses:
GridPlus Treasury: 0x1253385b0fc7e022df906aeec4a8270cdc8ea6f9
Interesting Discord Convos
Beginning on Dec. 19, Dr. Karl Kreder, CEO of GridPlus and inventor of the Lattice1, joins the Phonon DAO discord and begins discussing three areas of initial focus he calls, Project Kafka, Project Firefly, and Project Mayhem. He then informs the discord that he has been meeting with VC’s in SF and Mountain View.
After jumping around a bit. He starts to explain a concept of Market Obfuscation, that can happen as Phonon Network application are built and transacting Phonons, users will find it practical to use common values (e.g. 0.1 ETH). Due to how the transfer of Phonons take place this creates a layer of anonymity and deniability for every asset on every blockchain that seeds a new address with this common value.
An example, when creating a Phonon you will deposit any value, but a common value makes the most sense, into the Phonon Network then the network allows you to trade that newly created address and its private key to another person securily, now they can send it to another person, and this can be repeated as many times as users want. While on-chain the value in the address shows no signs of changing ownership or any on-chain activity.
So if I seed a new address with a common value, even if I am not creating a Phonon, I have plausible deniability that I did in fact create a Phonon and transfer it. If the actual usage of the Phonon Network is large enough this will inherently skew all blockchain analytics.
Karl then jumps around again and drops some more killer information. He informs us that he had an initial meeting with Samsung last week (now two weeks ago) and they really like the idea of P2P payments through Phonon because it gives them a use case of digital cash.
In these posts, Dr. Kreder gives his three main categories of uses. The first cross-chain asset exchange (uniswap for any asset on any blockchain). The second, p2p payments as mentioned before (digital cash), the third is micropayments and he mentions a quick use case being continuous payments during the use of something.
A question is then raised to explain how an AMM can be created in a P2P system. Due to fear of butchering the response I’ll quote him directly,
“So there are a couple parts to Phonon. The Phonon protocol, the Phonon Client(s), Phonon services (smart contracts), Phonon DAO (governance). The protocol is P2P and requires interaction. The Phonon client(s) can manage the phonon protocol in a way to create AMM. This means that makers have to run a computer, ideally secure, which facilitates market making trades. The Lattice1 would potentially serve as a very good version of a secure device that runs a client to facilitate AMM but any computer could be used.”
He continues on with some more helpful knowledge in understand how the exchange of Phonons will work.
“Complex routing could definately be an extension. However, in the simple case I would anticipate someone would settle 1.35 with 1, 3 x 0.1 and 1 x 0.05 ETH. So it would be 5 Phonons in total. You can think of Phonon as identical to cash and coin. Society has somehow functioned up until the last 30 years with the cash and coin model succesfully. So in this example if you are loooking to make trades you will have several different denomination bills, 1, 5, 10, 20 in your wallet as well as several denominations of coins, 0.5, 0.1, 0.05, 0.01. This will allow you to perform transctions with close to arbitrary precision”
“The other concept here is going to be something called a ‘change maker’ Because there will be a need to exchange Phonons into different denomincations to either "break" bills or to aggregate "coins" there will be demand for service providers exactly like in a world of cash.
If people are in the US they will be familiar with how stores fill a register at the beginning of the day using coins they get from a bank, and consumers redeem their coins into cash using a service called Coinstar. Both of these entities are change makers and there will be a similar need for this service in Phonon”
Here is a link to the full conversation on the discord. There are some additional bits of information that I did not include so I encourage you to check it out!
Pheverdreams
On Dec 12th, anonymous community member ‘Phonongod’ began a daily blog titled Pheverdreams that adds an entertaining and informative narrative to all things Phonon. As of this post he is on the 19th edition and they never disappoint. Check out all the past post and subscribe for all future posts.
If you found this helpful or informative, share and subscribe to stay up-to-date on everything Phonon.
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