Iron Finance Compensation (08/2021 update)
We must find a compensation plan with the best fit between “Compensate A.S.A.P.” versus “Maximize compensation amounts in USD-terms for most affected users”. This article is aimed at summarizing these two topics and propose the next steps.
Over the past three weeks, the Compensation thread in our Discord has attracted literally hundreds of users who have been actively engaged in the discussions on how to design the compensation for our June incident. The following two discussion topics are:
1️⃣ What block height(s) should be taken for the snapshot?
2️⃣ How to design and execute the compensation plan?
The compensation will include the following users:
▶ TITAN and TITAN LP holders
▶ IRON and IRON LP holders
Binance Smart Chain
▶ STEEL and STEEL LP holders
▶ DND and DND LP holders
▶ dTokens LP holders
1️⃣ What Block Height(s) Should Be Taken For the Snapshot?
This was not a flashloan attack but an hours-long incident/event so deciding on a block heigh for the snapshot is an incredibly difficult and complicated topic. Discussions around block-heights were certainly the most intense ones. Below are some selected ideas by community members who came up with different snapshot suggestions.
2️⃣ How to Design and Execute the Compensation Plan?
Below are some selected ideas by community members who came up with different snapshot height suggestions. Note that the compensation design will be easier to discuss once the block height has been decided.
3️⃣ Next Steps ❗️ ❗️ ❗️
The Discord discussion over the past three weeks has been absolutely essential in order to find the best next steps, which are as follows:
🔸 STEP 1:
▶ Invite around 10 to 15 community members (mix of early investors, proactive and respected/known community members, project contributors in governance channel) to a non-public discussion channel on Discord
▶ Compensation Committee Candidates (in no particular order):
sevar#6721, wubs#3003, mic333#4521, johnsanc#0177, GQ#6783, AltFreq#1337, starkiller4299#4886, IMissMyEx#4472, amaziz#9697, marzy#3642, WallStreetBets#271, Meito#8052, Enorm#6061
▶ These community members will be given a “Compensation Committee” Role and automatically be given access to a non-public channel which will be used solely for the compensation discussion.
▶ Debate existing snapshot proposals
▶ Announce the decided snapshot date(s)
🔸 STEP 2:
▶ If needed, and once the snapshot date(s) in STEP 1 is decided, run a(nother) public debate (in our existing public Discord compensation thread) on how to design and execute the compensation.
▶ Debate compensation design proposals
▶ Announce the full compensation plan publicly (September) and prepare for compensation start
▶ Optional: If Compensation Committee agrees, make the compensation discussion channel public and view-only
4️⃣ Final Thoughts
The compensation plan must focus on finding a reasonable way to satisfy affected users, while being mindful of current ICE token holders. Only such approach gives us the best chance for a successful compensation, without putting the price of ICE at risk which would destroy any compensation efforts as well as hurt ICE users as a consequence. In other words, and to be very clear: if the ICE market cap is low and the whole project gets into trouble because of the compensation, then no one gets anything and we all lose. Thank you for reading this article as we continue developing Iron Finance