The Commons Tribute is a percentage of funds raised during the Hatch that is allocated to the Commons Pool, a floating amount of our reserve currency (wxDai) that is not bonded to our minted TEC tokens and can be used for funding TEC projects and initiatives.
Implications & Parameter Options
You will have the option to set the Commons Tribute parameter as a percentage between 0 - 100%.
Since this percentage will be allocated to the Commons Pool rather than the Reserve Pool, it has several implications. The more funds allocated to the Common Pool means there is less wxDai backing the initial amount of minted TEC, lowering the Reserve Pool balance. The benefit is that the floating capital can be used for funding TEC projects and initiatives that further the mission of the TEC immediately, allowing for more participants and possibly more capital to flow into the system.
If you allocate too high of a percentage (>40%) of the initial funds raised during the Hatch period to the Commons Pool, you will risk making the TEC token significantly less valuable, and more under-collateralized. If you allocate too low of a percentage (< 5%) of the initial funds raised during the Hatch Period to the Commons Pool, you risk not having enough funds for the organization to fund valuable projects that further the mission of the TEC.
Related Parameters to consider when defining the Commons Tribute:
Opening Price & Reserve Ratio
15 - 35%