CCIP-056 - Modify lower value of CCIP-030 from 0.1x to 0.25x and increase the tipping buffer from 25% to 50%

Background

CCIP-030 passed in April 2022 and created a karma multiplier (KM) for each user based using the following formula:

KM = (Current Balance + Membership Purchases) / (Total Earned Moons * 0.75)

For context, there are a couple important details of this multiplier:

​

1. Moons used for special membership, coin, or moonplace purchases are not penalized
2. The minimum value of this multiplier is 0.1 and the maximum is 1.0
3. There is a 25% "buffer", meaning that if you don't hold at least 75% of your earned Moons, your karma will be penalized in future distributions
4. If you re-obtain Moons, the multiplier increase.
5. This was applied retroactively, that means your KM was calculated taking into account actions you had done BEFORE CCIP-30. So, if you "exchanged" more than 75% of your moons BEFORE CCIP-30 was aproveed your KM=0.1.

The reasoning for this proposal was that Moons are a governance token, and before CCIP-030 passed, many users sold all their moons, and therefore their votes, which caused governance to be in a "gridlock" as no proposal was meeting the Moons threshold to pass, despite the majority being in favor.

Proposal

I propose a change to the multiplier so that it has a minimum value of 0.25, instead of 0.1.

Additionally, I propose increasing the tipping buffer from 25% to 50%, meaning that the penalty will start after selling 50% of your moons.

The new KM formula would be:

KM = (Current Balance + Membership Purchases) / (Total Earned Moons * 0.5), with a minimum value of 0.25 and a maximum value of 1.0.

My reasoning is that things have changed in the market since April 2022 (when it comes to moons), I think this restriction should be loosened to increase the transfer of moons between users, exchanges, adding liquidity (for CCIP-051), and other future uses outside of Reddit

Pros/Cons

Pros

​

• Lower penalty for users who sold in the past
• More liquidity and exchanging of moons between users
• Better preparation for future use-cases outside of Reddit
• This eliminate the precedence of a CCIP that can be applied retroactively and something that is good now can be penalized later.

Cons

​

• More frequent dumping of Moons by moonfarmers (this can be lowered with others CCIP)
• Loss of governance votes, as users can only vote with their "earned" moons

Disclaimer

I have a KM 0.1, I exchanged more than 75% of my moons before CCIP-30 (I could have kept the 25% buffer AFTER April 2022, but not before, how could I know?).

Problem is that mostly of them were exchanged BEFORE CCIP-30 was approved, but as it was applied retroactively it affected people that were doing something was totally ok at the time but was going to be penalized.

I also have been posting WAY BEFORE moons were a thing (I have more than 5 years posting in cryptocurrency) in fact my posting rate (2-3 posts weekly) didn't increase because moons, so it is clear I don't do it for moons.

View Poll