Community Pool

How is the Community Pool funded?

2% of all staking rewards generated (via block rewards & transaction fees) are continually transferred to and accrue within the Community Pool.

How can funding for the Community Pool change?

Though the rate of funding is currently fixed at 2% of staking rewards, the effective rate is dependent upon the Swisstronik staking rewards, which can change with inflation and block times.

The current 2% tax rate of funding may be modified with a governance proposal and enacted immediately after the proposal passes.

Currently, funds cannot be sent to the Community Pool, but we should expect this to change with the next upgrade. Read more about this new functionality here. What makes this functionality important?

1. Funded projects that fail to deliver may return funding to Community Pool;

2. Entities may help fund the Community Pool by depositing funds directly into the account.

What is the balance of the Community Pool?

You may directly query the Swisstronik for the balance of the Community Pool:

swisstronikd q distribution community-pool

How can funds from the Community Pool be spent?

Funds from the Swisstronik Community Pool may be spent via a successful governance proposal.

How should funds from the Community Pool be spent?

The prevailing assumption is that funds should be spent in a way that brings value to the Swisstronik. However, there is debate about how to keep the fund sustainable. There is also some debate about who should receive funding. For example, part of the community believes that the funds should only be used for those who need funding most. Other topics of concern include:

• retroactive grants

• price negotiation

• fund disbursal (eg. payments in stages; payments pegged to reduce volatility)

• a radical overhaul of how the community-spend mechanism functions

We can expect this to take shape as proposals are discussed, accepted, and rejected by the Swisstronik community.

How are funds disbursed after a community-spend proposal is passed?

If a community-spend proposal passes successfully, the number of SWTR tokens encoded in the proposal will be transferred from the community pool to the address encoded in the proposal, and this will happen immediately after the voting period ends.