Proposal for Creating a Token


Community sentiment towards creating a token is very high. We are also in need of some urgent action to be able to provide short-term and long-term liquidity for grain.


  • Launch Grain as a free-floating ERC-20 token (on-chain grain) with variable supply minting and burning functionality (i.e. no hard cap on supply, allowing us flexibility to mint more grain down the line if needed).
  • The token minting will be technically controlled by the existing SourceCred Multi-Sig, but will be governed by SourceCred Core, or whatever governance body/mechanism SourceCred Core may choose to delegate/defer to.
  • Anyone can sell grain from their sourcecred instance ledger balance (instance-grain) in exchange for an equivalent amount of on-chain grain.
  • For now, our funding will only be used to purchase instance-grain as describe in this proposal up to $1USD. Our funding will not be used to buyback on-chain grain for now.

Effects and Benefits

  • The ability to convert instance-grain into on-chain grain on request allows folks like DL to lock in their commitment to not eat up our current funding, allowing us to have a clearer picture of what kind of short-term liquidity we can provide.
  • The convert-on-request model is also important because we do not have a viable Eth address for contributors, nor a good way to mass collect them.
  • The proposed parameters of the token leave all the doors open for changing minting terms and building additional infrastructure, so that we retain the power to choose more deliberately.
  • ERC-20 is easier to use and easier to learn about than side-chains such as xDai. Although gas fees are high, L2s will soon address the problems with Eth mainnet, and our ERC-20 token will be compatible with L2 functionality. We will even be able to use 1hive tools like Gardens using L2s, in the future.
  • The urgent creation of a token has the possibility of creating additional liquidity, since the creation of some infrastructure like liquidity pools is permissionless. This means on-chain grain might open up more short-term liquidity with no additional effort on our part, even potentially to the point of being more attractive than our up-to-$1 instance-grain liquidity.

Plan to propose

This will be proposed at the Emergency Core Meeting today if there’s time, or next Tuesday otherwise.

Thanks @s_ben for helping draft this.


Just as an aside, 1hive has a bot that when you submit your eth address it confirms it without publicly displaying it… sorry if I’m off topic but I am looking into it because I want to replace our current google poll model. Should I stop looking into this because we won’t need it with this new proposal?

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Collecting ETH addresses is something we’re going to need to do anyway eventually. E.g. if we decide to do an airdrop (note: not a current plan). And even if we just continue our current policies, a bot sounds better than a google form. Not required for current proposal I guess, but something that would be good to move forward on anyway.

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:thinking: I was wondering at what stage we would want to do this.

I can throw together a spreadsheet to house wallet details so we have the thing and it’s ready when we need it if that’s desired.

The form for opting in (fill out if you haven’t already and want to move your Grain on-chain!) has a neat feature where you can send responses to a google sheet, so we got that covered. If you want you could help with verifying the submissions (just DM me if interested!).

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Are we ready to talk about a governance Token yet? :wink: