How should IOTA raise money to continue development beyond 2024?
Estimates from Dom would give us until mid-late 2024 to obtain funding to continue core development on IOTA. Since it will take months to build community consensus and execute on the chosen path, we should get the conversation started sooner rather than later.
For example, if the best option is: inflating MIOTA, we must agree on: the new supply, how much to give to the IOTA Foundation, Tangle Ecosystem Association, and/or a Community DAO, whether to sell any to new investors, etc.
Dom mentioned investing/earning yield in Shimmer DeFi, but we’d be lucky to squeeze two months of funding from DeFi on an illiquid chain in the depths of a bear market.
Ideally we could raise upwards of $100 million to comfortably last out the bear market.
Perhaps some combination of these options is ideal, I’d love to know where you all stand on this pressing issue. Our best options so far seem to be:
A) Increase MIOTA/SMR supply - Give to IF/TEA/CD
Pros: Simple(r) to do, no need to find investors.
Cons: May cripple price as tokens are sold for fiat. Hard to convince community, as it dilutes us.
(B) Increase MIOTA/SMR supply - Sell to investors, fiat goes to IF/TEA/CD
Pros: Better for price, investors are less likely to dump it below cost basis.
Cons: Hard to find investors. Hard to convince community, as it dilutes us.
(C) Take unmigrated (pre-Chrysalis) MIOTA
Pros: 252 Ti/$55 million available. Simple(r) to do.
Cons: Threatens IOTA’s credible neutrality. Morally, holders should have another >6 months to claim, delaying funding. May cripple price as tokens are sold for fiat. Doesn’t reach the target amount.
Pros: Simple(r) to do. Our collective ‘sunk cost’ might raise enough money.
Cons: ‘Free rider’ problem. We all want IOTA to be well-funded, but individually donate as little as possible. Unlikely to raise the target amount.
(E) Sell Pretty NFTs
Pros: Cooler than donations. Still semi-simple, depends on scope.
Cons: Hard to find buyers. Requires work: art/marketing. Same as Donations, still altruistic as NFTs won’t have utility/intrinsic value. Unlikely to raise the target amount.
(F) Sell NFTs as debt - The IOTA protocol sells a % of daily Mana to repay debt + interest
Pros: Profit-driven vs altruistic, could raise far more money compared to Donations/Pretty NFTs.
Cons: Hard to find investors. Requires work: art/marketing, a way to create/sell Mana, and a contract/DAO to handle money, diverting resources. Will take years to repay debt.
(G) Other - Comment below
- Increase MIOTA/SMR supply - Give to IF/TEA/CD
- Increase MIOTA/SMR supply - Sell to investors, fiat goes to IF/TEA/CD
- Take unmigrated (pre-Chrysalis) MIOTA
- Sell Pretty NFTs
- Sell NFTs as debt, owed by the protocol
- Other - Comment below