Yes that is accurate. Leaning on Base for security frees up protocol resources for things such as infrastructure, dApp economics, ZEN sustainability initiative, etc. There is also the potential for other network services that promote privacy such as relayer networks which aid in private/compliant transaction processing.
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There are several things that should be evaluated here and while you raise some good arguments there are some things to point out.
- The DAO is not receiving all of the unminted supply at once. There is a vesting period of 48 months specifically to thwart against the issue of selling pressure.
- While more tokens will be released quicker, the term inflation here isn’t totally accurate from my perspective. There was always going to be 21 million tokens released to the market, it is just happening faster. This is strategic play to foster growth and build quicker. The token supply remains unchanged.
- Horizen will no longer be a PoW chain. The fact that we are even able to keep 21 million tokens without inflation, as every other smart contract ecosystem has, is a giant sign of strength.
- The DAO itself is a decentralized organization, so I don’t fully agree with the sentiment here that this moves toward centralization.
- The community has the power here to do things strategically, and doesn’t need to spend in excess. Moreover, sustainability is about providing more value to ZEN and the ecosystem itself, good spending brings more value.
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You will get the same amount of tokens that you have on Base as you do on Horizen.
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Proposal looks great. So much can be achieved with 5m ZEN. IMO, incentives to bootstrap liquidity should be a key focus, given the private compliant DeFi focus on the L3.
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