Questions for the Governance Call 27/09

Hey guys!

Based on the latest calls, we noticed that a sheet with questions would be helpful!
I will create this sheet on a bi-weekly base, so we have a clean list with questions every Gov. call!
Drop your questions in this topic, so we can handle them in the next call!

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  1. This may sound like a silly question but are you increasing the supply because StormX is running out of cash to run the business? A simple “Yes” or “No” answer would suffice.

  2. Is there any external funding (more investment) on the horizon? If so, can this negate the need for the extra supply?

  3. I am no expert but if we had more users of the app and thus more cash coning from the shops, we would not necessarily need this supply increase. Is this correct? If this is correct, then what are we doing to increase the app usage and get new users? The number of new users to StormX has reduced massively over the last year going from over 100 per day to less than 10 per day now. This seems to be driven by a lack of affective marketing. How can this be fixed? We seem to have gained nothing from the vast amount of cash spent on basketball, poker, and motor-racing promotions.

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  1. Can we see details of potential “big ticket” stores that we would aim to add for each region in the world we want to expand into? Some metrics that include those store’s estimated revenues/web traffic would be beneficial.

  2. Will the STMX token upgrade affect ATH on a technical level since they are paired on Uniswap? E.g old smart contract version of ATH with newer version of STMX.

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  1. What is the ultimate impact on the StormX business if the vote is no to increasing the supply and we stay as is?
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  1. this isn’t related to the STMX swap/upgrade directly, but more so to ATH and financing rounds - which somewhat relates to the token upgrade.

→ When doing or completing a funding round with VC/private equity, it is normal for them to have a say in what the team does. this is based on shares/board seats, or development/funding milestones, as far as I’m aware.

→ Question 7 A: Does having the ATH token, potentially steer VC money away, as the VC + STMX are “beholdent” to ATH token holders ?

→ Question 7 B: How does the STMX team balance ATH governance, and corporate governance, while maintaining vision and scope?

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Long write up, definitely encourage you to talk internally and just address it as question 8 when answering/commenting lol.

  1. AFAIK, the team wants to increase the supply of the token for a few reasons.
    → The main citied reason, is for staking rewards to reduce the chance of a selling exodus.
    → Secondly is for regulatory compliance and dev costs. 60ish people on team, debit costs a lot of time/hours to keep compliant (so were told)
    → Thirdly, is for a growth fund, be it marketing, incentives, promotions, etc.

Addressing the first part, staking rewards:

Currently the team offers 50% APY on ATH tokens, assuming there are 100k ATH tokens staked, and a 50% APY. This would last for over 5 years currently. Obviously the market caps of STMX and ATH are quite different, as are the amount of tokens in circulation.

Has the team considered offering a 10000 STMX: 1 ATH token staking contract? (no impermanent loss)
(there are 10 thousand STMX token for every 1 ATH token)

It provides a reason to buy ATH, which also increase the potential for governance interaction. It offers a avenue for STMX holders to earn a token that is already created and accepted (no dilution or additional tokens required). It allows the team to not spend STMX treasury reserves for some time, allowing for staking rewards to be paid in STMX in the future.


Addressing the second part, team/dev costs.

The team wants to add 10% year one, 10% year two, and 5% year three.
The bear market is likely to continue until 2024/2025. Assuming price stagnates at 0.005$ to 0.01$ , How much does the team anticipate it will need to cover costs. Assuming half of the new “tokens” per year go to STMX treasury, that’s 2.5M to 5M USD for year one and year two.

That’s a average pay of 41.6k a year on the low end, up to 83.2k a year. Does the team think this will be enough? Is it too much?


Addressing the third part, Growth fund;

With the few marketing campaigns we have had (Basketball, poker, racing), we haven’t seen a massive growth in users (I could be wrong). It also is a bear market, so yeah, there’s that.
What types of things has the team learned form these partnerships? In what ways are the team thinking about spending this newly raised “growth fund” money?
User acquisition + retention is hard, but we have to find a way to do it.

Sorry for long write up.

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  1. Is there a real need to vote for the full 25% now? If this is a 3-tranche plan, they why not just vote for the 1st year 10% now and review if we need to vote for another 10% and 5% respectively in years 2 and 3. This has 3 benefits. Firstly, it gives us chance to see what how the market reacts to a smaller supply increase and may then allow us to manage future increases more efficiently; secondly, it may be easier for members to accept a smaller increase in the first instance; and thirdly, it will give us all a year to work on other revenue generating plans that may negate the need for year 2 and 3 votes in the future.
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  1. Say we do expand into other regions, the likelyhood is it attracts more users engaged in dropshipping, maximising the most cashback out of the reserve pool/treasury. Without a monthly limit on individual user spending, will we not just be back to where we are now, and need to vote for inflation again?
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  1. How often does stormX pay users out of treasury when a user completes a crypto cash back shopping experience.

How many transactions/or shopping $$ in a % are subsidized by stmx treasury, if so.

What tiers are often subsidized, if so.

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  1. Koreans currently hold 40% of the total issuance of STMX through the UPBIT exchange
  2. However, ATH tokens were not supported when ATH was issued. Even now, I haven’t received any staking rewards.
  3. I know that the exchanges with the wallets of the StormX operators are supported.
  4. UPBIT exchange has very strict standards for issuance. Coins and tokens that violate this have all been delisted.
  5. More sensitive due to the recent LUNA incident
  6. Currently, 48 wallets have voted. Is it correct to issue 25% with such a small number of opinions? And most of it seems to be a wallet related to the management team
  7. Tens of thousands of Koreans, who own 40% of the total issuance of STMX, are unaware that such a vote is currently taking place.
  8. If you increase the issuance by 25% at will, it will remain as the second LUNA incident.
  9. Simon Yu, whom Do Kwon envied, issued an additional 25% of STMX
  10. STMX/BTC 0.00000001

Can’t speak for all of these points, but as for point number 6…

And most of it seems to be a wallet related to the management team

I am just a regular user with a passion for the project, and appreciation for the model and technology being used. This is the beauty of governance, anyone can use their votes and help shape the outcome.

To # 8 and #9
My isuse with your write up lee, is at first it made sense, but then you called stmx a second luna. Which is hyperbole to say the least.
Is the supply increase not good? Maybe.
Is it rushed? Yes, sure.
Are the users not able to make very informed decisions? 100% yes.

#7 → users should be aware of the vote, all they habe to do is read twitter, read this forum, or use discord. All of which is free, Normal to do, And investers are supposed to pay attention to whats going om with there investments

The reality is that the Korean exchange did not support staking and did not support the issuance of ATH tokens. So people don’t know anything about voting. Koreans own 40%.
They are well aware that debit cards are being delayed significantly. Would you like to increase the issuance by 25% in this situation?
Is it an exaggeration to be the second LUNA case?
Ah, the market capitalization is not that much, so it’s an exaggeration.

Have you made any effort to support a staking service for Koreans who hold 40% of the total issuance?
Have you ever supported issuance of ATH?

NEVER

“This is the beauty of governance”

Lee, I believe you are misinformed.

Firstly, you cannot stake STMX on an exchange. You can however hold tokens there, and have the StormX app confirm how many you hold on an exchange such as KuCoin, effectively updating your membership tier at the same time.

Secondly, exchanges never would have issued ATH tokens because a) It’s not listed on any exchange and b) it was a token you would claim within the StormX ecosystem.

Have you ever supported issuance of ATH?

I’ll refer you to the blog article from last April as proof of my statement: https://help.stormx.io/hc/en-us/articles/4930014595351-How-Do-I-Claim-Governance-ATH-Tokens-

Check the criteria of claiming the Athens token at https://claim.stormx.io/

Unless you interacted with the StormX ecosystem in the ways specified, you would have no legitimate claim to obtaining them, at the time. You can however swap to ATH using a DeFi exchange like Uniswap.

All of this information was available and should come as no surprise.

Your second sentence is not correct as you are & were able to stake your STMX

The various sizes for each % are different and capped and your membership status will not be updated but in essence staking your STMX on your binance account is possible.

Why did only staking people, not STMX holders, give out ATH?

  1. Because most of them are operators
  2. Selling STMX for operating expenses and not having STMX
  3. Loyalty is high
  4. Koreans with the highest holdings do not even stake and are not interested in ATH.

Even if the exchange did not support ATH issuance, Koreans tried to understand.
Operators are trying to increase the issuance of STMX through ATH.
They don’t listen to the people who own STMX and ignore them.
Is this common sense?
Does it mean that people who only have STMX don’t contribute at all?
We are not looking for compensation. You are trying to harm the holders. 'Cause you’re blind with money
A very small number of people are rushing to increase the issuance volume.
I hope you care more about operation than money. Have you ever marketed STMX in Korea? NBA, poker nobody cares
Or have you been explicit about debit card delays?
Answer: I can’t tell you because it’s a secret, it’s not my problem, it’s a legal problem
You should try to increase, market, and communicate with brands for Koreans who have the most
Why aren’t you voting for this?
Increasing the issuance will immediately cause UPBIT delisting, and Koreans will sell off.
I will understand if you plan to buy at a cheaper price after delisting.

so many questions, and points here ill try to address some of them.
first off, the staking smart contract is a smart contract, you can access it from ANY country. so staking is offered to Koreans, you just chose not to learn how. which is fine.
Secondly, you could have claimed your ATH or earned ATH but you chose not too, which is also fine.
thirdly, i do agree STMX token should have been the governance token, but STMX team decided to try a different approach.
fourth, The team lived in south Korea, for what i believe is many months, if not over a year. I’m pretty sure they would have marketed it there (hence why there on Koreans exchanges in the first place.)

i don’t want to the supply to increase, but i will also point out where information is wrong.

If you just hold your tokens on an exchange, but you DONT use the app, you also DONT use staking, your a day trader or your speculating wildly. This is a investment, you must continue to keep up on it. you cant just assume things will always need no intervention.

if we are going to banter/disagree, we might want to take this to the discord.

Who is the most loyal to STMX?

  1. ATH holder, STMX holder
  2. ATH holder, STMX Seller
  3. STMX holder
  4. ATH holder

1 > 3 > 4 > 2

The second is you
Your loyalty is focused on ATH. STMX is a means of printing money

You were interested in the Korean market in 2017. It’s now October 2022
Did you prove yourself that you haven’t been interested in at least 4 years?

At first I didn’t know why ATH was made, but now I understand. You want STMX for free and you don’t want to take responsibility
Of course, legal responsibility. On the surface, it was conducted through a governance vote. Like Luna’s Do Kwon
But Do Kwon is wanted by the prosecution

to answer your question, it would be #1.
im # 1. NOT number 2. i have over 600k STMX tokens and only 56 ATH tokens, trust me i could give two shits about ATH.
BUT
ATH is here, weather or not i like it. SO I got involved. its not new info. its been out for months.
maybe you should get with the programme lol.
I’ve been in since ICO, and used there products, wear STMX merch , etc.

This has nothing to do with Do Kwon. AT ALL. its a dilution, thats it. many coins do it , many don’t. i know groundbreaking. EVen better, they asked us if we wanted to do, and if not… its almost like theres a system to vote against it. Do i have problems with the timeline? yes
Do i have problems with transparency, yes
do i want a dilution, not really, no.
so you know what i will do? either vote no, or note vote yes. depending how i feel.

it seems like you would like to vote NO on the proposal, so you should do that.