Upcoming EMC（EdgeMatrix Computing） SNS Decentralization Sale

Governance
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Dear Community Members,

After a comprehensive review, DFINITY has decided not to support the current proposal. Our decision stems from various inconsistencies, discrepancies, and concerns that we believe are essential to address:

  1. No Canisters under SNS Control:There are no canisters currently under SNS control. The call to list_sns_canisters on the SNS root canister returns an empty list, contrary to expectations. This means there is no value assigned to the DAO that goes beyond a “promise”.

  2. Discrepancy in Tokenomics Sheet and SNS Initialization Parameters: There are mismatches between the proposed tokenomics and the actual SNS initialization parameters.

  • The tokenomics sheet states the the proposal_reject_cost is 100 tokens, but when calling get_nervous_system_parameters on the SNS governance canister, the reject_cost_e8s is 5_000_000_000, so 50 tokens. This can also be seen on the dashboard
  • The tokenomics sheet states the neuron_miniumum_stake is 10 tokens, but when calling get_nervous_system_parameters on the SNS governance canister, the neuron_minimum_stake_e8s is 100_000_000, so 1 token. This can also be seen on the dashboard

  1. Discrepancy in Tokenomics Sheet and proposal payload: There are mismatches between the proposed tokenomics and the actual proposal payload.
    The tokenomics sheet states the max_participant_icp is 100 tokens, but when checking the proposal payload the max_participant_icp_e8s is 15000000000000, so 150 tokens.

  2. Contradiction in Reward Rate: The current proposal text, the governance canister and the tokenomics sheet provide different reward rates. The current proposal text states the following:

    Voting Rewards: The reward rate will start from 2% annually. This rate would decline over time and settle at total 5% over 10 years.

    In the tokenomics sheet the reward rate is constant at 2.5%.

    When calling get_nervous_system_parameters on the SNS governance canister, the final_reward_rate_basis_points and initial_reward_rate_basis_points are 0 respectively, indicating that there are no voting rewards at all. This can also be seen on the dashboard

  3. Dissolved Neuron Owning 10% of Tokens: There is a neuron that is part of the airdrop_neurons and has 0 dissolve delay and no vesting that owns ~10% of all tokens (owner r5jfq-5ofkq-xg2fn-7osp7-lul5j-nnoqo-juxba-2mdmh-ezqhf-sbvo7-uae). This is in conflict with the information provided in the proposal and the tokenomics sheet.

In addition, although this did not factor in our decision for now, we would strongly recommend every project to adhere to a max of 10% from the Neuron Fund. This has been recommended in the guidelines and although DFINITY hasn’t yet rejected any proposal due to this factor, we would start doing that in the future. At this time EMC requested for 11% the proposal submission, which does not align with the suggested minimum standards for neuron fund contribution.

Please note that NF is for the community and if teams start overdrawing then the Neuron Fund contributors may find it difficult to support future teams. Hence we strongly recommend you to restrict your ask to max 10%. Additionally it is our recommendation that the Neuron Fund should ideally be 1/3 or at most 1/2 of the minimal ICP to be raised.

The noted inconsistencies compel us to urge for further clarification and review of the proposal.

We are open to discussions and collaboration to address these concerns and ensure that decisions are made in the best interest of the entire community.

Thank you for your attention to this matter.

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