Strategic Reserve
I have detailed a strategy that reserves 25% of any incoming zcash during years 1-4 for use during the next years 4-8 and included a discussion of its benefits: https://hackmd.io/@jmsjsph/4MGRC#How-should-MGRC-allocate-Strategic-Reserves
Volatility
How will you handle a single digit ZEC? ($9 x 8640/month = $77,760)
How will you handle a 5 digit ZEC? ($21,000 x 8640/month = $181.44MM) Thoughts…
In the long run, our goal should be to establish Zcash as the internet reserve currency such that it is stable in its own right.
Until then, we can reinforce the value of ZEC by declaring 1 ZEC=1 ZEC (as long ZEC/USD stays within some range that affords rent and groceries).
If ZEC/USD is $9, we can divide our grant funding allocation across less programs, reinforcing higher priorities as pre-defined by the committee (see 3d Social Contract: https://hackmd.io/@jmsjsph/4MGRC#-1-“3D”-Social-Contract-for-transparency)
If ZEC/USD is $21,000, we can multiply our grant funding into more programs, halving the amount of zec available and granting funds to our Wish List endeavors:
Wish List
If excess funding is available, say, ZEC/USD is $21,000, MGRC shall draw from a ZCAP wishlist that is maintain by MGRC. As with all funded grants, MGRC wishlist items must be approved by ZF before funding is administered.
These high and low triggers may be pre-defined, in public or in secret, by the MGRC/ZF.
I like the idea so much I have added it to my agenda and will credit you. Thank you! HackMD - Collaborative Markdown Knowledge Base