Welcome to the world of SwissBorg's Guardians of CHSB program, a groundbreaking initiative designed to foster community involvement and shape the future of SwissBorg's activities. As this program continues to evolve, its vision expands, aiming for a more sustainable and impactful approach to guiding SwissBorg's decision-making processes.
The first four sessions of the Protect and Choose have been conducted with great success, and more than 10,000 SwissBorg premium community members have been rewarded with CHSB and the satisfaction of impacting the decision-making of SwissBorg.
In pursuit of transparency and open communication, we are committed to providing informative content and rationale behind any relevant changes made to the program. In this article, we will cover the latest updates to the Protect and Choose funding, introduce an update to the community index, and outline revisited conditions for the upcoming Guardians' sessions.
The current state of the P&C pool
The total value of 3.6 Million USD shared in the Pow Wow or on the website was the total cost of the company to fund this program. This also however means that depending on the value of CHSB and how many have been bought back, the current valuation of the pool may be above, or under the amount displayed on our metrics page.
The current pool provided by the treasury, before session 1, was composed of:
- 9,120,000 CHSB (at an average price of roughly 0.17)
- 1,850,000 USDC
Every month, we use a portion of that CHSB to conduct the session.
At time of writing (25.07.2023), the pool is composed of:
- 6,245,000 CHSB (purchased at an average price of roughly 0.17)
- 2,219,000 USDC (as 20% of the revenue for the months since the start were added)
How do we plan on buying CHSB from USDC
Historically, SwissBorg has not been publishing the specific times and prices at which CHSB was bought, nor the status of the pool. The Guardians of CHSB is however a program which will require some more transparency on those aspects and the system has been reworked a little bit to mirror the value of consistency that the program has.
- From the old inflow system: We will be buying 125,000 USDc worth of CHSB on a quarterly basis. (Until the USDC run out)
- From the new inflow system: We will be buying CHSB directly on the market each month, depending on the revenue of the company and community Index. (The “Protect” becomes consistent)
These two systems will operate simultaneously until the USDC pool runs out and only the new inflow generates funding. Also, the Q2 buys have not happened during that quarter, so they will be conducted in addition to the Q3 buys between the months of August and September.
This is how the new inflow will be implemented:
As can be seen on the graph displayed above, the quantity of CHSB is decreasing quarterly, this is mostly due to the price of CHSB which consumes the pool faster than it fills it. As we believe that the price of CHSB will be rising in the future, we will enter a sustainable in-outflow once that occurs.
If not, we will have to assess and re-evaluate our current system.
The funding of the Protect and Choose
As explained by our Head of Finance Julia in the “CHSB - 2023 Roadmap in English” on YouTube,(https://www.youtube.com/watch?v=rB0UzunC93M) the consistent 20% revenue that is currently being allocated to the Protect and Choose is not sustainable in the long term. In the situation of a bear market like the one we were currently navigating, SwissBorg cannot responsibly sustain the program in the current form, thus requiring us to rethink the system entirely.
Mirroring the latter statement, we have also established that providing resources to community-led initiatives was a key component of SwissBorg’s growth and purpose, and that the inflow of funds into the program could be scaled upwards in a more fruitful market.
The community Index is now going a step further, and is seeing an additional "Sustainability Score" on the it's popular weekly Pow Wow page.
This sustainability score is the number that SwissBorg will use to dictate the monthly allocation of revenue into the Guardians.
Reworking the Funding Mechanism: A Window into SwissBorg's Success
(updated on 11.09.2023)
The funding mechanism for the Protect and Choose program will now rely solely on the Sustainability Score.
The Sustainability Score is a performance metric for SwissBorg, rated on a scale of 1 to 10, with higher scores indicating better company performance.
This score reflects whether our revenues cover our costs, and to what extent. When the industry is thriving - as it was the case during the last bull run - the Sustainability Score will be very high, but during slow periods, it will be lower.
The other elements of the community index will remain the same. They capture relative changes of engagement from our community in and outside of the SwissBorg app. A profitable organization and stable growth are the guarantees of a healthy and sustainable ecosystem, and our goal is to set SwissBorg on that trajectory, and make sure the whole community benefits from it.
To summarise the community index consists of the following key factors ranked by impact:
- App Volume: Captures the volume traded inside the SwissBorg App.
- App Activity: Captures the relative changes of engagement in the SwissBorg app, (change in number of exchanges, deposits, or number of users in passive income and thematic products...
- CHSB Token: Considers the token's price and volume
- CHSB Holders: Tracks trends in number users with 10 CHSB or more in the SwissBorg app.
- Invitations: Follows trends in number of users from referral program
- Social Media: Monitors changes in engagement on SwissBorg's social media platforms.
How does this updated funding mechanism work?
When the Sustainability Score is low, the allocation to the Protect and Choose program will be 1% of our revenues. On the other hand, if the Sustainability Score is high, indicating a thriving ecosystem, the allocation can increase and can reach up to 30% of our revenues!
This ensures that we maximize the impact of the Protect and Choose program by using funds generated in a favorable market.
Example of the new scoring system:
The power of initiative
Suggestions can now be made by the community in the form of comments on the published slido links, allowing for ideas to be pushed and shared with the SwissBorg team directly. One week after the link to a survey has been published, the SwissBorg Community Leaders will filter what they believe to be the best suggestion and it will feature along the classic ones in the following session.
This allows us to consistently involve our most loyal community members and representatives of the community to decentralise decision-making as much as possible during this process. The SwissBorg team does however reserve the right to remove suggestions which may be unrealistic for the Guardians of CHSB program to achieve such as “Binance Listing” or “Benjy’s Brewerie”.
The first suggestion cast in by our community is the SwissBorg association, a group of devoted community members focused on bringing crypto-education and the SwissBorg Brand to the next level, and the second one has been to open a new burn pool to top-up the other poll option.
We look forward to seeing all of the other great ideas that can arise from this program!
Voicing Power Update
The voicing power was initially the amount of CHSB held multiplied by the premium boost. As mentioned in the first blog article however, we are still hoping on getting the Hero Score to come into play, which would add a new variable to that calculation.
The calculation during the first votes is therefore:
Number of CHSB held * Premium Tier Boost
But it plans on becoming:
Number of CHSB held * Premium Tier Boost * Hero Score Rank
Number of CHSB held
The number of CHSB that the Guardian is holding inside the app, excluding those locked for their premium tier.
Premium Tier Boost
Standard Users = 0
Explorer = 1
Community = 1.1
Pioneer = 1.2
Generation = 1.3
Genesis = 1.5
* Please note that these apply to your voicing power only.
Hero Score Rank
Top 100%, or not part of the program = 1
Top 75% of the program = 1.05
Top 50% of the program = 1.1
Top 25% of the program = 1.2
Top 10% of the program = 1.3
Top 5% of the program = 1.5
The hero score will however only be added as soon as our internal processes allow for a 0% error rate, and a swift and easy integration to our current system.
We are expecting to have it all ready for the next voicing session, in August. Please note that if the Hero Score program was not to be continued, the Guardians of CHSB wouldn’t use that metric in the reward’s calculation eternally.
Eligibility Criteria Update
To be eligible for the Guardians Contribution reward, you must reach a voting power higher than 0 (which means not being a standard user), and on top of that, we are introducing an increasing amount of minimum CHSB holding in order to reward the accumulating holders of CHSB.
The threshold is the following:
First session: 200 CHSB
Second Session: 200 CHSB
Third Session: 250 CHSB
Fourth Session: 250 CHSB
Fifth Session: 300 CHSB
Sixth Session: 300 CHSB
Seventh Session: 350 CHSB
And from the 12th Session, it is likely to stay 500 CHSB.
SwissBorg's commitment to continuous improvement and evolution propels us towards reshaping the Protect and Choose program into a more robust and dependable feature than ever before. Our core focus lies in two fundamental mechanisms: consistency and community involvement.
Community involvement is the heartbeat of the Guardians of CHSB program. We firmly believe that the collective intelligence of our community leads to better decisions and outcomes. Emphasising this principle, we welcome the new initiative power, allowing our community to submit suggestions through comments on Slido links (that you can find on our Discord or in the descriptions of our YouTube townhalls). We value the diverse perspectives and ideas our community brings, enriching the overall experience for everyone involved.
Let’s build, adapt and grow, together.