On February 7, 2024, IERC-20 Protocol announced the major ecosystem milestone, marking a pivotal moment in the ongoing evolution of the Ethereum inscriptions ecosystem. The first-ever IERC Improvement Proposal IEIP-1 was launched on Snapshot, a fair governance tool and a voting platform that allows DAOs, DeFi protocols, and NFT communities to vote easily and without gas fees.
IERC-20 is the pioneering open trading market within the Ethereum inscriptions ecosystem. It serves as a scalable solution for Ethereum that facilitates seamless, user-friendly, and accessible experience of buying and selling IERC-20-based inscriptions for all.
IEIP-1 targets $ethpi, the latest addition to the IERC-20 inscriptions ecosystem. $ethpi is a verified inscription token that was launched in January 2024 and cooperates with IERC-20. The total supply of $ethpi was capped at 21 billion at launch, and it embodies the core principles of decentralization and democratization that define the ethos of the inscription playground.
The launch of IEIP-1 on Snapshot, a decentralized governance platform, underscores IERC-20’s commitment to fostering community-driven decision-making processes. This proposal represents a collaborative effort to optimize the utility and sustainability of $ethpi, ensuring its continued growth and relevance in the rapidly evolving blockchain ecosystem.
PoW mining and DPoS staking are the main $ethpi production methods within IERC-20. Participants of DPoS staking can also get daily $ethpi airdrops according to their daily rank on the DPoS point consumption leaderboard. IERC-20 has recently announced the development of the all-time DPoS point consumption leaderboard to provide additional incentives for top historical DPoS stakers.
The first governance proposal includes the following items:
1.Supply Cap Adjustment: In order to preserve the rarity and value of $ethpi, it is proposed to limit its total circulating supply at 300 million, 1/70 of the total supply set at launch. As soon as generation of circulating $ethpi through PoW mining, DPoS staking, and leaderboard rank airdrops reaches 300 million (excluding the burnt tokens), all the remaining $ethpi inscriptions will be burned.
2.Distributed Exponential Incentive Plan: Besides the above 300 million, additionally, 30 million $ethpi will be allocated as rewards for decentralized distributed indexing among those who build and run trusted nodes in the IERC-20 ecosystem. This portion will be released into circulation linearly. This way, the protocol aims to promote decentralized indexing and ensure fairness in distribution of indexed balances as part of its outstanding plans to become the first fully decentralized project in the realm of Proof of Work (PoW) data indexing. This plan will incentivize the community’s efforts to maintain the network security.
3.Deflationary Policy: IEIP-1 proclaims the pivot of $ethpi to the deflationary model. The possible future deflationary methods that may be implemented include fee discounts & buybacks, airdrop snapshots, and launchpad subscriptions.
The success of IEIP-1 ultimately depends on the active participation and engagement of the IERC-20 community. Qualified $ethi holders are encouraged to cast their votes on Snapshot, exercising their collective voice to shape the future direction of $ethpi and the broader IERC-20 ecosystem. If the proposal is supported by the community, $ethpi total circulation supply will be capped at 330 million, 1.57% of the total supply at launch, and IERC-20 Protocol is positive that it will further decrease continuously through the deflationary mechanics.
As of the writing time, 1.0825% or over 227 million $ethpi has been mined. It represents 75% of the newly proposed total circulating supply of 300 million to be available in mining & staking. If the ratio of votes for exceeds 2/3 of the total votes, IEIP-1 will be considered successful and the proposed items will be implemented. Vote qualification snapshot of all $ethi holders, including stakers, happened at midnight UTC on February 7, 2024. Voting is available for 7 days until 4am UTC on February 14, 2024. Over 140 unique holders have already voted. 2.2 million $ethpi or over 99% of votes are for.
Overall, IERC-20 DPoS & PoW can be deemed a successful community experiment. The number of $ethpi holders is nearing 10,000, while nearly 300 ETH gas (valued over $700,000) has been burned through mining and staking so far.
Since the DPoS model has been welcomed by the IERC-20 community, the protocol may explore expanding the utility of DPoS points. Both organizations and individuals can apply to release their own points and staking pools in the IERC-20 inscriptions ecosystem to promote the sustainable development of both the projects and the protocol.
IEIP-1 is set to manifest the power of community and its attention to the future development path of the growing inscriptions ecosystem on Ethereum. Qualified $ethi holders can vote on Snapshot and decide on the tokenomics of $ethpi before February 14.
IEIP-1 link:
More info about IERC20
Website: www.ierc20.com
X (Twitter): https://twitter.com/EthinscXYZ
Telegram: https://t.me/IERC20OFFICIAL
Whitepaper: https://docs.ierc20.com