{"signature": "0xe08740fbbb190cad15d97f53a1336f8bebdece4719d25eaab60b79d3a66e8c714e52f8195bebd4b42d0d1e1d14451df7e5c4c27f82683d54f7e0508b86c50b461b", "application": {"round": "0x9e669c0a6e075f14ba9d9d98c3580ad67e20ec38", "answers": [{"type": "email", "hidden": true, "question": "Email Address", "questionId": 0, "encryptedAnswer": {"ciphertext": "/0WcUsmCQ8YLvJR/LwaSD8Y70kv9HX3hvctQSYcfEK0=", "encryptedSymmetricKey": "dea09defe1f85014b619834fd3f1b9f54d5f8f3e32d51450ea681f3be29642fb31af68b71c64bac4f04ae4cb403b5001254b1db71fee137d94686f82a1c14acfe324ff0127218e1d685bc98f54fbd426c780093bde688cda855a5f8a295afdaa687ed7084e752d7e05c3bd7ca7ed89a2c0cf6ef3976a46337589a2c87a8717eb0000000000000020dc10d4527617f4451d7916ef014bffc1e3a12e87dc55fa598ffe9538d0cbef16b889b78638c51a377861434e25089989"}}, {"type": "short-answer", "answer": "None", "hidden": false, "question": " Previous project funding sources (VC, grants, token sales, etc)", "questionId": 1}, {"type": "number", "answer": "1", "hidden": false, "question": "Team Size", "questionId": 2}, {"type": "short-answer", "answer": "0", "hidden": false, "question": "Total prior funding for project in USD", "questionId": 3}, {"type": "short-answer", "answer": "4", "hidden": false, "question": "How old is the project? (Months)", "questionId": 4}, {"type": "short-answer", "hidden": true, "question": "If you participated in past Gitcoin grant rounds using a different project payout wallet address, please share it here:", "questionId": 5, "encryptedAnswer": {"ciphertext": "1rdABUM+TkUWULerE/2HFAFxpuG4rgBc/6e/F80jRNQ=", "encryptedSymmetricKey": "9d4d163c7ae541ab17532867d72a944f83fd770779be291298c5c0f1cb47fa4ab4dc0238336b22f23938e43bf94d0b05935904e2a984b976d9bc41c603f1c1d5d1878944245ef584c42597a41ecb23300a6e46d72b082a21e67129bdb7f2368db2f4077574a12ac5db6e0f90ef116e11efde3e71e8eef22675b908efa9ed767300000000000000203cfbe2c9d64dcec4a833547bccc686598cb766b14aa8350266337002cabdf819e536cac2afe8cdae551c0f4e95d23088"}}, {"type": "short-answer", "hidden": false, "question": "Profiles or socials of other main team members publicly associated with project", "questionId": 6}, {"type": "multiple-choice", "answer": "Yes", "hidden": false, "question": "Have you read and confirmed your grant abides by the Program General Eligibility Policy? https://www.notion.so/tecommons/Eligibility-Policy-7cf5ff8c323149cf84011712f070f009?pvs=4", "questionId": 7}, {"type": "paragraph", "answer": "The revolutionary aspect of cryptocurrencies is that they allow transfer of value without an intermediary. This is almost exclusively seen as positive by the web3 community. However, with great power comes great responsibility; when the distributed ledger technology underlying a cryptocurrency replaces a human third party, it replaces all the cultural, legal, and historical understanding and nuance of a human being. At that point, it becomes important to consider mechanism design and how this may be programmed into a web3 project.\n\nOne such mechanism is called burn-and-mint. In burn-and-mint, a token is \"burned\" to pay for a service that a network provides; a token is \"minted\" to pay for a service that is provided to the network. The mint pays for the supply of a service, and economic demand sustains the burn. Burn-and-mint is useful because it is an equity-based way to bootstrap a network, avoiding the need to raise large amounts of capital. It is unique in that it can only be done with the use of cryptocurrencies.\n\nThis project seeks to contribute to a full macroeconomic understanding of burn-and-mint. The importance of understanding how burn-and-mint models work is in itself a public good. Currently, various decentralized physical infrastructure (DePIN) projects base their economies around burn-and-mint. These projects are deploying massive amounts of hardware into the field and sometimes it goes into disuse; an example is Helium's IoT network, the token of which rose so rapidly in price and led to inefficient deployment of Helium hotspots. Preventing misappropriation of public infrastructure is just one of the many public goods that can come from an understanding of burn-and-mint.\n\nThis project also contributes to how one may design a burn-and-mint economy to ensure sustainability not only from the supply side, as mentioned above, but also demand. It seeks to answer the question: How can a project design their economy to avoid a collapse in demand, ensuring steady, sustainable growth and healthy price appreciation without episodes of major volatility?\n\nIn particular, this project is but a stepping stone towards the eventual goal. The idea is to model a burn-and-mint economy as a partial-information game, in which participants can both earn minted coins, burn those same coins, and trade coins between each other. The project's results will be made fully available to the public and the aim is to publish these results in a peer-reviewed venue, such as a major conference or journal publication.", "hidden": false, "question": "How does your project contribute to token engineering?", "questionId": 8}, {"type": "paragraph", "answer": "The project started at the beginning of 2023. Milestones include two blog posts:\nblog.uros.kalabic.rs/valuing-burn-and-mint\nblog.uros.kalabic.rs/adequate-burn-and-mint-rewards", "hidden": false, "question": "Please share any new updates or milestones from the prior months", "questionId": 9}, {"type": "paragraph", "answer": "The money from this grant will allow me to speed up work on this project. I am seeking funds for monetary support of 3 months, which is the typical time that it takes for a small project to be completed, from initial results to paper submission. As I will be using open-source software for simulation, I have all the equipment and software necessary to perform this work. Travel funds to present at a conference would be nice, but are not necessary.", "hidden": false, "question": "Anything else you'd like to share about your project, previous work, or other project affiliations? Anything you'd like to add that has not been covered?", "questionId": 10}], "project": {"id": "1:0x03506eD3f57892C85DB20C36846e9c808aFe9ef4:508", "title": "Burn-and-mint tokenomics", "logoImg": "bafkreifbml4clbsecpfj36exbd6maot7xctmahhu7k4i6zsn5rqyzx5kg4", "metaPtr": {"pointer": "bafkreide5hn7fvrgxi45db6vw4xec5fziuzld22mzig3opxcavgnamu3kq", "protocol": "1"}, "website": "https://res.uros.kalabic.rs/projects/bme", "createdAt": 1681842688188, "userGithub": "urosvk", "credentials": {"twitter": {"type": ["VerifiableCredential"], "proof": {"jws": "eyJhbGciOiJFZERTQSIsImNyaXQiOlsiYjY0Il0sImI2NCI6ZmFsc2V9..xIycRBsXrODIawXWwLU7zQLctWrw2UoPuAwEkzAPB3M7-Cl6nRP_UGkD4XQlJcCTyZj1kDa-aqGEogQsOebaCA", "type": "Ed25519Signature2018", "created": "2023-04-18T18:30:32.340Z", "proofPurpose": "assertionMethod", "verificationMethod": "did:key:z6MkghvGHLobLEdj1bgRLhS4LPGJAvbMA1tn2zcRyqmYU5LC#z6MkghvGHLobLEdj1bgRLhS4LPGJAvbMA1tn2zcRyqmYU5LC"}, "issuer": "did:key:z6MkghvGHLobLEdj1bgRLhS4LPGJAvbMA1tn2zcRyqmYU5LC", "@context": ["https://www.w3.org/2018/credentials/v1"], "issuanceDate": "2023-04-18T18:30:32.340Z", "expirationDate": "2023-07-17T18:30:32.340Z", "credentialSubject": {"id": "did:pkh:eip155:1:0x7f3eb18E46bC6350722f981e8750DE6d0655509a", "hash": "v0.0.0:8jb8h9DcNbXsSQ0kqn8qTrFlhK+iIuMX1nbCng61qBM=", "@context": [{"hash": "https://schema.org/Text", "provider": "https://schema.org/Text"}], "provider": "ClearTextTwitter#urosnoetic"}}}, "description": "I am doing research into the tokenomics of burn-and-mint equilibrium (BME). Here are two blog posts I've made on the topic ([1](https://blog.uros.kalabic.rs/valuing-burn-and-mint), [2](https://blog.uros.kalabic.rs/adequate-burn-and-mint-rewards)). A major insight of these works is how one should choose the rate of new token mints. The choice of this inflation rate is similar to the choice of a fiat currency\u2019s interest rate.\n\nSo far, the work I've done considers that all participants have full information about each others intentions and share the same valuation of the network. Detailed proofs exist that back my work up, so I am starting the next step.\n\nThis grant seeks to fund my work on expanding the full-information case to consider partial-information frameworks, where agents would have individual beliefs about the value of the economy and then infer the beliefs of other agents through observations of the market. I will study the dynamics that result from such games and see if we could tweak tokenomic parameters to avoid volatility and ensure stable economic growth.\n\n\u2028I am not alone in this work, and already have a few collaborators who I am working with from the fields of cryptoeconomics and economic game theory.\u2028\n\nAs for impact, I envision that this work would have various types. Here they are in order of immediate to long-term: Firstly, the aim is to make BME models acceptable by growing our understanding of them. Secondly, the aim is to help break into the mainstream by publishing this work at conference such as Economics and Computation and Financial Cryptography. Thirdly, this work is in no way limited to web3, let alone burn-and-mint; financial systems, whether fiat- or crypto-based, have similar dynamics; web3 allows us to measure and experiment in ways that have been thus far impossible, so my hope is that we might learn how to improve traditional economic designs, such as, for example, algorithmically setting interest rates.", "lastUpdated": 0, "projectTwitter": "urosnoetic"}, "recipient": "0x7f3eb18E46bC6350722f981e8750DE6d0655509a"}}