This proposal seeks to send 1,102,544 ALTHEA from the Community Pool to Althea Limited (Althea Limited), the BVI-incorporated operational subsidiary of the Althea Foundation, for the purpose of providing Althea Limited with sufficient ALTHEA to fund ecosystem growth, marketing, grants, liquidity, operational expenses, and advisory services.
Background
Following an incredibly productive 2024, during which we saw the launch of the Althea L1 blockchain and other important integrations, Althea is poised for exciting developments in 2025. Key milestones for this year are expected to include the chain (and token) unlock, launch of the iFi DEX, the scaling of liquid infrastructure, and ongoing ecosystem expansion.
Althea Limited works together with a decentralized group of stakeholders, validators, developers, and users to steward the Althea blockchain ecosystem. Althea Limited was initially allocated 1,327,925 (or 6.43%) of ALTHEA tokens. Currently 85% of the distributed tokens are staked across the network’s validator set for the purposes of supporting a robust and healthy ecosystem and ensuring the economic security of the chain.
In addition to Althea Limited’s allocation, the Community Pool received 32% of tokens at launch, for the general purpose of distributing to ecosystem participants (as the community sees fit) to support ongoing development, maintenance, ecosystem and growth initiatives.
At this time, Althea Limited is in need of liquid ALTHEA for operations, advisor allocations, and to fund other grants and marketing programs. The tokens will also be used to support a successful token unlock, operational activities, and supporting a robust and healthy ecosystem.
It is for these reasons, at this exciting time for the project, it is hereby proposed that the community votes to transfer 1,102,544 ALTHEA tokens from the Althea Community Pool to Althea Limited.
This allocation is sufficient to support the needs anticipated for 2025 while maintaining a significant reserve in the Community Pool to ensure its ongoing and important mission.
The on-chain Community Pool is controlled and administered through governance, and governance votes are the only way to spend from the Community Pool.
This is an important time in Althea’s history, and allocating community resources to support the initial production period of Althea L1 is key to its long-term success and sustainability.
Potential Downsides
The ALTHEA Community Pool currently does not replenish tokens. The ‘community pool tax’ parameter which defines what percentage of staking rewards to send to the pool was set to zero at launch. Refilling the pool could take some time given that ALTHEA token inflation is currently set to five percent. While this proposal is reasonable and measured, if there are too many additional spending proposals in the initial years of the chain, it could create problems for community initiatives in the future.
Impact
If passed, this proposal would transfer 1,102,544 tokens from the Althea L1 Community Pool to the Althea Limited multi-sig. Althea Limited would then own and manage, for its own account, the $ALTHEA total for the 2025 calendar year.
Follow Up
Proposals to allocate Community Pool resources are executed by governance. Any community member can submit a governance proposal (like an on-chain funding proposal of this type) for voting. Suggested best practices for governance proposals are located on the forum - Althea Governance Parameters
Live information about token distribution is available at https://info.althea.zone/
Public api documentation is available as well GitHub - AltheaFoundation/info-server: A simple and lightweight utility for gathering information and displaying about the Althea L1 blockchain
Althea Guiding Principles:
- Agnostic and Open Participation
- Programmable Agency and Choice
- Practical Impact
- Power to make change
- Sustainability for all stakeholders