Proposal #74

OnFinality High Performance Public Infrastructure (Q3 & Q4, 2023)

Democracy
1yr ago
7 Comments
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I voted yes, but I have a question.
I would be happy to answer them if you have time.

The cost to OnFinality, why is this charged in INTR tokens?
I assume the Interlay team is funded by the Polkadot Foundation, so why not pay out of that?
270000 INTR is not such a huge amount because INTR tokens are currently very well marketed, but within the Interlay ecosystem, it is a significant amount of money.

There are very few investors holding 270000 INTR, and if all of 270000INTR were to sell at Gate.io, the amount is powerful enough to destroy the buying board in one fell swoop.
I understand that this is an infrastructure investment and therefore essential, but I would like INTR tokens to be as difficult to obtain as possible.

For example, couldn't the project buy up 270000 INTR from the CEX market and pay with that?
Perhaps procuring 270000 INTR from the market would require about 1.5 times more than the current price, which would be a painful expense.
I am sure you will then understand my concern about paying this 270,000 INTR.

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I'm curious about the timing of these requested "charges." It seems a bit peculiar since Q2 was executed five days ago (as shown here: https://interlay.subsquare.io/democracy/referenda/67). This timing might create the impression that there's an intention to capitalize on the recent 40% price decline, especially with the inclusion of this "discount offer" if the protocol pays in advance. Personally, I would prefer to pay for Q4 retroactively.
Is there any discussion about asking for funding from the Polkadot treasury for the whole ecosystem? Additionally, it would be greatly appreciated if you could provide some evidence or proof of the data pertaining to the services you're claiming. Thank you in advance.

Edited

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Hi @wdBy...aFCn @wd8h...k6WD , thank you for your questions!

Regarding INTR tokens, this is not actually our preference (we would prefer KINT) however it was requested by Dom from the Interlay team (on behalf of the community) back in June that we begin splitting our proposals in half (so $2k to the Kintsugi Treasury and $2k to the Interlay treasury) considering our services support both networks and to a reasonably similar level. You can see in one of our older proposals here, we requested all costs to be paid in KINT: https://kintsugi.subsquare.io/democracy/proposals/119

I appreciate the concern you raised about liquidating INTR and we will certainly take this into consideration. It is tricky for us as our bills are all in USD so we do need to pay our bills in USD however we will make conscious efforts not to disrupt the market when liquidating.

There is certainly nothing suspicious about the timing of our proposal except that we want to move away from retroactive funding. Unfortunately our Q2 Kusama proposal failed (https://kusama.polkassembly.io/referenda/241) and we were left with over 60k worth of costs that will not be recovered.

Regarding verification of our services,

Let me know if you have any other questions and I'm happy to help!

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Ok. Thanks for the reply. Still, the timing is hard for the token and the holders. The amount you are requesting is 2x the daily volume on Kraken.

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Hi @wdBy...aFCn @wd8h...k6WD it's a shame to see the proposal now failing, we will re-lodge with just Q3 costs to see if this is more do-able. We will still make the proposal in INTR tokens unless you have any other suggestions.

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