VaultZ next era : A proposal for the Community Funds after the upcoming halving

Dear Community, what follows is a complete proposal for a future model of usage for the VaultZ (Community Fund) , after the upcoming halving.

What is VaultZ and what happens after the upcoming halving?

As you probably already know, VaultZ is a democratized donation mechanism that the whole Community decided and voted for, with an extreme majority, defining even its exact percentage (5%) before a couple of years. - more info https://getbtcz.com/what-is-bitcoinzs-vaultz/

Soon BITCOINZ is closing its 4th year of life and is going to have its first halving. Like with the classic Bitcoin or other pure crypto, that means that all the blocks will now give half of the coins that used to give as reward to the supporters of the network (miners) for the next 4 years. (6750 coins instead of 12500 coins per block). Then the rewards will be halved again and so on, reducing this way the BITCOINZ emission rate and providing the classic deflationary effect to our network.

As you understand, this fact will have an impact to the VaultZ as well: The Community Fund will be receiving the half number of coins after the halving like it is described in the following picture.

This phenomenon will be repeated in the next halving, after 4 years, if of course the Community approves with its vote another period of VaultZ support.

So it is more than obvious that the sum that is already gathered in the Community Fund (more than 205M coins) is the most important and one of the highests that we will possibly ever have, since it came from the last years with the highest block rewards.

However, it is time for decisions and it is up to the Community if this sum is going to stall there together with any other additional VaultZ coins in the future, creating a super big pile of most possibly, ultra undervalued coins or not.

Can the future funds make somehow the already gathered ones more “valuable”?

Most possibly yes… because the Community can decide to re-organize some sections of the project that seem to lag by using a part of the future VaultZ funds (those that will be added in our treasury after the halving) in yearly basis. This way, the BITCOINZ Community can increase the possibilities to “leverage” the value of all the already gathered coins and any extra ones that will be added in the future into the treasury.

Just two examples to understand the power of a “leveraged” Community Fund :

  1. The balance 205M BITCOINZ coins with the current (very low) valuation would grant us about 50,000 USDT which can hardly provide just a medium-sized exchange listing. Please note that this would be achievable only in the positive scenario that these 205M were all sold at the current exchange rate without causing any pressure to the price. Something probably unrealistic due to the fact that an empty Community Fund after a huge spending like this, would create a negative future outlook for the project and a chained reaction of further devaluation. So the most possible scenario would be a much lower USDT sum than the 50k in the end and a drained VaultZ with very controversial future for the project.

  2. On the other hand, if the project implements a model in order to distribute the future Community funds in sections like development, marketing, community motivation etc, it might seem that we use a great part of the Funds yearly like 75%, but in reality this “spending” would make the already gathered 200+ millions much stronger and of course every single extra coin from the remaining 25% going into the VaultZ and being added to these millions, more valuable.With a very “weak” positive effect and just a x3 increase to the coin’s value, the gathered coins that in the previous scenario were valued around 50K USDT, would now worth 150K USDT and a much better prospect for the future…With a stronger positive effect, this could be x5 , x10 or even much more, opening the path for more aggressive marketing, more important partnerships, listings etc. These aforementioned budgets for development rewards, community motivation etc would be also more valuable after some time, empowering further the positive effect to the Community Treasury, the expansion of the project and its outstanding future prospect. A positive chain reaction.

So what is the proposal for the usage of the next 4 years VaultZ funds about ?

The proposal is exactly as we described in the example (2) above, to plan & act. To do things with the future funds in yearly basis, in all the directions that we consider that the project currently seems to “lag”, empowering this way its expansion and the already gathered funds in the Community Treasury as well.

Like the diagrams describe, we would distribute the 75% of the yearly future VAULTZ coins (65.7 Millions after the halving) in 4 sections and different budgets :

(A) Development

Obviously the project is doing nicely with its volunteering decentralized development , bringing people from different places together and working for several things and ideas around it.

However it needs to have a more concentrated core developer team. Future core updates, possible new algos testings, extra functionalities and more modern wallets are things that the project is going to need in the future. The blockchain technicians and developers are under heavy demand with the cryptocurrency boom and this is making it harder and harder for the project to find manpower for this crucial section. Dedicated old members like Cryptorex or Marcelus is difficult to exclusively carry this load and even if they could, it would take much more time to achieve certain goals.

So a development VAULTZ budget of 35% yearly could grant 22.9M every year (& the Community could even organize donation events for extra bonuses) as a reward to a renewed Z-Core dev team. This would easily distribute 5-6 Millions of bitcoinz yearly, for the next 4 years to each member of a team of 4 members. Or maybe even more with a separate donation Z-CORE team address and Community donations when the team is delivering nice work for the Project. Only this way we can achieve a Core development “Renaissance”. By motivating the already existing developers and attracting future ones who know that they would have some nice BITCOINZ rewards in regular basis.

(B) Marketing

(Part1) Many people are asking “why we don’t list in Binance” , “Why we don’t pay this influencer to mention us?” etc… ignoring that the cost for these things is insane in $$ and only centralized , 100% pre-owned projects can afford such spendings.

A really Community driven project like BITCOINZ can achieve such things only by wider and wider social reach which comes organically. We have done a really good job the last months with better social presence and some nice articles, videos, artworks etc but the “natural” growth usually comes quite slowly. The most effective way of getting the project more exposed is to engage the Community itself and motivate new members to take action.

We have old members that care a lot for the project and dedicate time in the social media but we need to attract more “simple” people and motivate them in order to empower our social presence. This way we can build a "Z-Army" which would interact with certain posts and tweets massively.

It is not a secret that in Cryptospace many people are engaged by (even fake) giveaways in twitter or they run after poorly paid faucets because even a couple of $0.10 payments make a difference for them (since there are many countries with very low daily average income where cheap smartphones are available). Others are interested in just building a portfolio of some coin types that they can gather for free by completing several tasks etc.

We can attract them all and make them to actively participate with our old members in order to push our project socially in a very affordable way:

Currently, we can see that in the #giveaways section there is activity when someone is donating coins to people with V-rain orders because almost everyone appreciates some free coins…

Our partner Vidulum, will release soon a special “role-filtered” V-Rain feature. This will enable our Discord Admins to make targeted V-Rains only to members who have a specific role. For example Z-Army Initiative, Z-Army Soldier or Z-Army Lieutenant based on their contribution level to our weekly targets.

We can set certain tasks in a couple of special Discord channels like #promotion and check with screenshots the member’s activity like retweeting, commenting, writing reviews etc. The admins will be able to add certain roles to the members who are fulfilling the targets and the targeted V-rains will be distributed only to those who have the roles. With this functionality, the possibilities will be countless. Like working with levels of different rewards, lists of specific influencers, happy hours of activities etc

A 5% of the yearly VaultZ would be about 3.3M bitcoinz, which would give a high enough sum of 63K bitcoinz weekly for this kind of activities engaging the community and widening our social reach.

(Part2) As we have possibly all noticed we are among the projects with very rich portfolio of exclusive artworks, diagrams, articles etc. The “issue” though, is the extreme search engines competition with the thousands crypto out there. A press release always boosts the presence of a project, especially when it comes from a platform with high search engine score. But how many press releases can afford a project like ours ? Recently , a new platform specialized in press , called EIN-presswire, launched a promo-program for their biggest package of 50 press releases in a year with a cost of $999. This includes 5 distribution channels, 5 images , 2500 words and 1 video per release. With another 5% yearly VaultZ we can have this package and at last flood the search engines with facts about BITCOINZ.

In the case that we decide to use a smaller package for press releases, we can just use the extra remaining coins from the 10% Marketing yearly budget for the BitcoinZ Army plan (Part1).

(C ) Community Rewards

What a Community Driven Project would be without its long term believers and loyal supporters who hold BITCOINZ coins during all this time ?

This section is taking care exactly of this. A 30% of the future VaultZ funds (about 20M yearly) is going to be used in a rewarding program that will grant to the users who “connect” their addresses with this platform, “staking-like” rewards according to their BITCOINZ holdings (quite like our friends in Vidulum app do). Here we are adding though another aspect : the time of unmoved funds.

The users will be of course completely free to use and move their funds anytime but those who hold the coins “unmoved” in the same address for longer time will gain access to bigger pools of rewards leading to higher daily bitcoinz rewards.

Please note that this would not change the nature of the Project which remains a 100% Proof of Work coin ( new bitcoinZ coins are created only by mining). We would just reward all the Community with a part of the Community Funds, giving a higher premium to the longer time holders who usually are the most supportive members for the whole project. Quite fair.

(D) Treasury

The treasury is actually the VaultZ itself , excluding all the voted / automated spendings that have been mentioned above. Its classic purpose is to cover the project’s infrastructure costs (VPS for wallet services, domain names, hosting costs etc) and every future marketing / listing cost for the Project that the Community approves.

It will be holding all the already gathered coins (205M) and the 25% of the future VaultZ coins (about 16.5 M) yearly, for the next 4 years until the 2nd halving when the numbers are changing again.

Of course the Community , as always if free to donate to the Community Fund extra coins or to organize donation events in order to support certain listings as we have done in the past. https://fund.btcz.rocks

The meaning of all the (A)-(B)-© spendings for Development, Marketing and Community Rewards is to help the Project to expand faster and to strengthen the Treasury (D) making its buying power much higher.

Kind regards to @chancefx for his amazing ideas about community rewards and @Monobody for the FAQ section :heart_decoration:

Community please vote wiZely :slight_smile:

You can find some answers to the following “AMA - Ask Me Anything / FAQ- Frequently Asked Questions” section.

Q1 I like a big part of this proposal but I dislike a few things, why we don’t vote for each part separately ? Or why we don’t vote for each percentage ?

A separated in 4 different sections proposal would lead to a chaos because all the percentages are interrelated. If for example a part of the Community considers that a higher percentage should be given to the (B) section , then this would automatically reduce the (A) or © or (D) percentages. Therefore making the dev reward less likely to attract developers, or the Community Rewards less motivating and so on. OR if for example a majority agrees for the “pink” part of the table but disagrees for something else, the equation would not be the same anymore.

Additionally, this would require 4 long discussions threads with multiple votes in the forum with 4 different levels of explanations that would most likely discourage the members from watching them all, leading to low turnout and a never ending situation of stagnancy.

So a YES/ NO vote for the whole proposal is asked. You can just weigh the likes & dislikes and make a decision or you can just think if this plan is actually opening a better path for high community participation or not. Since this is the meaning of a Community driven project after all.

Q2 Are all the 4-5 developers of the new Z-Core team (A) completely defined?

No, an upvote is needed in order to attract people with blockchain know-how more easily and additionally motivate the already existing members. Currently we have 2 members that actively dedicate time for our core: Cryptorex and Marcelus. We should ideally get 2-3 more people in order to build a more effective 4-5 members team for now, and maybe an even bigger team in the future as the coin gains more value and social reach.

Q3 With dev rewards like the proposed will we be able to claim that the project had “no dev fees”?

Yes, because actually the project was launched with no dev fees / tax and continued this way with VAULTZ and it will continue this way even if the Community upvotes this proposal. A dev fee/tax is set by the developers/founders of a crypto project, the exact percentage is also defined by them and the community is not asked for this. BITCOINZ was launched with NO dev fees/tax and it never had any. It was the Community that voted for VAULTZ in order to raise a fund (with a huge 96% majority). Its members decided even about its percentage (5%) and now again the members are going to decide if they wish to reward the Z-Core team or not.

So this is totally unrelated with a dev fee because we are all asked if we wish to raise a sum, how many coins we will raise and how we are going to use them. It is a Community’s decision, not a founder’s or a developer’s pre-defined and pre-decided setup.

Q4 Is the rewarding platform described in part © ready ? Will my “connected” coins be free to use and, most importantly, safe?

The platform is not ready yet because in the BITCOINZ Project we always vote for everything. Therefore we are unable to fund something that might be downvoted by the Community. A positive vote is needed in order to proceed with the development of the platform.

The connected coins to the “Z-Earn” proposed program/platform will be completely free to be used and 100% safe because there will be no “locking” up. This would act most as a “checker-application” to your associated transparent address in the bitcoinz blockchain and the user will receive the rightful rewards to another address of his choice. If he fulfills the requirements of unmoved funds (for 3 months or 6 months for exmaple) , he will be granted the higher levels of rewards as well. So the user will be free to move funds anytime but doing so, will degrade him to the much lower level1 tier of rewards.

Q5 According to the marketing plan (B) , don’t we risk with so many V-rains to the Z-Army to dump all these coins and devaluate the coin in order to get FIAT money and make a living? According to the development plan (A), don’t we risk that the devs could do the same thing with their “big” rewards?

No, because even if all of these people of the Z-Army did that, 3.5M bitcoinz coins yearly is not a big sum that could inflict any form of devaluation. If we take into consideration that their activity would actually increase our social reach and the potential buyers, then the coins that they could theoretically “dump” would be far less than the demand that they would bring . Another positive is that all this would increase naturally our trading volumes as well.

For the (A) plan’s section, the answer is again no. The ~22 M coins of the developers yearly is not a huge sum that could inflict any significant “dumping” even in the extreme scenario that all of them were selling all their coins. Just think that the miners will be getting ~3.5M daily after the halving and many of them currently sell their coins anyway since they either wish to pay their power costs or they don’t all believe in the project. There are people who mine BITCOINZ because it is just a very profitable coin due to the fact that its whole supply is distributed to the network supporters with zero pre-ownership.

So, by having a stronger or more active development team, we increase the possibility to make more miners believe in the Project and attract more buyers. Besides even the developers themselves are members (or will be, for the future ones) who 1) appreciate the project and its original cryptocurrency approach and 2) they would definitely prefer to hold their coins and add significant value to them with their work. Win/Win for the developers, the Community and the Project itself.

Q6 What about the “Community Managers” that were supposed to have certain budgets every few months and spend them according to their choices ?

This managers model unfortunately could not work well because it was requiring many voting procedures with candidates that most of the times were not interested in writing reports or describing future plans. Most importantly , almost nobody among the oldest members felt comfortable enough in order to spend budgets of the Community fund on their own will. Just because they had been “chosen” by the Community, without an automated/voted specific spending plan for a certain section or scenario. So this new proposed model of automated distribution in well-described sections is completely replacing the old managers system that was not viable.

Q7 Why not just spending EVERYTHING in order to get a… major listing instead of voting for this?

This sounds a little like the…“When Binance?” guys …

Well, first of all even if we could sell all the Community Funds in order to get USDT or BTC in order to pay for a “major” listing, the coin would suffer from instant devaluation and the raised sum would be much lower than the one that we think. Therefore it would hardly suffice for one mediocre listing. In addition the future would be questionable because there would be an emptied treasury and zero plans. Besides, just a CEX (Centralized Exchange) doesn’t actually offer anything great and a following delisting or a hack or a scam exit can even hurt a project that spent everything in order to get a “firework” effect with an exchange listing…

People who really care and believe in this project would certainly understand the aforementioned prefering a more organic expansion with real growth and positive prospect. Then the bigger exchanges will come naturally and unbiased. The meaningful thing for a project like BITCOINZ is to get the exposure that it deserves and get a powerful Community with high engagement.

  • Yes
  • No

0 voters

14 Likes

Thanks for putting up such a detailed presentation. It’s easy to understand and I agree that these new vaultz funds usage will help boost BitcoinZ in many fronts.

I only hope that the new core developers we find are as comitted as Cryptorex ans Marcelus.

I think that rewarding the unmoved addresses is an excellent idea to have people comitted to the coin.

13 Likes

— I have walked with this project from the first day and i believe in core team will make this project go father.
— We should create decentral governance voting system like polkadot made. Voting system should base on number of btczcoin that hold by community that keep in vault. eg: foreach amount of coin hold in vault more than 1 years: 50-100k wallet have a vote, 100k-300k wallet have 3 votes, 300k-1m wallet have 5 votes, 1m-5m wallet have 10 votes, >5M wallet have 15 votes, >10M wallet have 20 votes. Avoid whale to control community but keep transparent in blockchain.
Community Rewards is great idea that not move to POS but fair with people spend money and believe in project for long time and do not want to spend their money in hardware.

— Technology move forward and update everyday. Defi, cross chain, nft, game are good ideas. Community driven is very difficult to give a best solution to everyone. We need much more to make BTCZ Greater than just a coin.

— I hope that Core Team and our community continue spend our wisdom, money, strengthen to make BTCZ get it’s real valuation !

14 Likes

As for listing at the moment, I could try listing on free exchanges and sell part of the btcZ funds to usdt, being conscientious not to drop the market. as new investors enter new markets, they can be liquidated btcz without major price impact.the entire project proposal was very good, congratulations.

7 Likes

Hey guys!

@VandarGR , great approach, as always! I have already voted ‘Yes’.

However, our voting system, as @SteveHoward or Don at discord suggest, has to be improved.

Firstly, every proposal that suggests a major update for our BitcoinZ ecosystem or asks for a great chunk of VaultZ should have a Request For Comment (RFC) period before the voting period starts, exaclty as our whitepaper indicates. By this way, people will have the time needed to study the proposal in depth, read other member’s state of mind, make their own research and only then vote accordingly.

Secondly and in order to prevent any kind of abuse of our voting procedure, I strognly believe we should adopt a voting system similar to or even the same as the one that @SteveHoward suggests.

In technical, theoretical terms, such an implementation should not be too difficult to be added to the forum, which could also be the base of the Z-Earn project too:

  • Every member could provide a public address and verify it by sending 1 btcz to a forum address.
  • The system then could check the percentage of the coins that are kept in the wallet for more than a fixed period of time, eg 1 year, and then calculate the corresponding votes of the member in a similar or even the exact way StevenHoward suggests.

Best regards guys!

:heart: BitcoinZ

12 Likes

I also think that putting the ‘Z’ at the end of a word sounds better than having it in front of it. For example, the word ‘VaultZ’ is great. In the same way, earnZ sounds better than Z-earn and armyZ sounds better thatn Z-army. And brainZ sounds better than Z-brain.

In my opinion ‘Z’ should always put in the end. We should keep the pattern fixed, exaclty as the ‘Z’ appears at the end of our name!

And we should always use ‘Z’ in capital and #42abcc color, exaclty the same as our logo.

We should impress the ‘Z’ into people’s minds and in order to achieve so we should keep it stable!

12 Likes

I completely agree that such major updates/proposals should have a very long time for voting and discussion. This is why I chose this period that most people have more free time because of summer holidays.

Additionally the maximum time should apply for this proposal so we make sure that it is open for voting for weeks.

About the voting system, as the project gets more exposure we should definitely work for more sophisticated voting procedures.

10 Likes

That sounds good. Unfortunately I frequently move funds around every few months and don’t always keep them in the same wallet :grimacing: I have my mining wallet, and I have my Vidulum staking wallet. I also use sapling addresses in between transfers from mining to Vidulum.

We definitely should figure out some kinda of implementation that’s un-cheatable, for sure!

4 Likes

Yes, me too. I move funds here and there, splitting them between different wallets.
But I think we could find a viable solution for such an implementation.
The least we could do is just keeping an address stable for voting procedures.
Besides, I believe most people rarely move funds from their main wallets.
So we already have some sense of stability from where we could start researching.

3 Likes

This is Exactly what the BitcoinZ Project needs! Absolutely Love this Momentum! Keep up the great work community! :heart: :+1:

4 Likes

yes, this in my opinion is a must, good on you dreigon!!!

1 Like

completely agree, if this coin is anything its definitely stable, so stable its collecting dust, but i still wake up everyday and shine these little guys up, committed and proud to be a part of the DeComm of BTCZ, iv been holding on to the bag i fill from mining for so long my hands sparkle in the dark.

1 Like

Let me first give a big thanks to VandarGR and any others with a hand in making the above proposal, the detail, the graphics, the research… great job and again thank you for the time you put toward this, i truly understand how much effort was applied, kudo’s, i tip my hat to you.
Now that i have or more likely have lost your attention with such a drawn out show of appreciation, hang on for a few more lines before hitting me with the TLDR. It all started in 1985 where… lol jk. The proposal covered exactly what this project needs, it address’s the issue all projects left to be driven by a DeComm suffer from, lack of direction and forward momentum, there’s many many reason’s why this is the foreseen outcome in any kind of Comm drivin setup, this proposal will tackle these issues and im sure we will see exponential growth in a short period of time. Im going to address the part im most versed in and to me its the second most important part to ANY project/business/campaign… the idea and development is #1, a not so distant 2nd is marketing, you can have the best idea or product to ever exist, if know one knows about it, its a moot point, if you’re demonstrating your project in the woods and know ones around to hear it does it really exist… well ya, ya it exists but still know one knows about it, unless you plan on a second project where you introduce woodland creatures to a monetary system? if not, get out of the woods. as you might have guessed it by now what i do for a living is consulting, and yep you got it, i consult on how to grow rare tomato’s in the harsh conditions of the Yukon its slow at times but give me time to answer questions about marketing strategy and brand building, im no wiz like i am with frosty tomato’s but im coming along. i specifically consult on token/coin launches, done the proper way and the stars align iv seen a 75m mcap in under 36hours. Most of the time though the budget is a bit tighter so i lean toward unconventional methods i like to describe as guerilla marketing, high impact low cost, keep those customer acquisition costs at a min while getting the most amount of eye and ears possible. Oh and this is no sales pitch, im just an investor/miner with a particular set of skills, i will find you… wait not those skills that life is behind me… lol, but seriously marketing in the right way now a days is not what it used to cost, especially when compared to the return brings back with it, easily shave a few zeros by the end of the year. Like i said im around, im invested, any questions or advise just hit me up. thanks guys and thanks to the community.

Oh and you’ll see me use the word DeComm from time to time, im trying to get that as common as DeFi, it stand for Decentralized Community/Communities either way, DeComm/DeComm’s, thanks

3 Likes

Great ideas & well presented proposal, well done!

2 Likes