Overview

The Alchemist Fractal defines the high-level structure of the Alchemist ecosystem.

The Alchemist Fractal

Within the Fractal, several Alchemist types all share various responsibilities for different functions of the project.

This is simply the initial iteration of the Fractal. It is not necessarily the final top-level format, nor does it cover replication at more distant org levels. These will be determined and outlined at a later stage.

The Fractal structure will be a dynamic, ongoing experiment played out in the public domain.

Goals of the Fractal:

  1. Drive value/increase rewards to liquidity providers

  2. Incentivize founder level talent to build within the Alchemist ecosystem

    1. Allow for launching sub tokens

    2. Provide funding / support / education / distribution (users)

  3. Balance product teams (profit center) and service teams (cost center)

  4. Incentivize product teams to maintain / improve / increase the profitability of their products

  5. Be antifragile to black swan disturbances like a bear market

  6. Enable socially scalable/permissionless growth

  7. Incentivize shipping and long term alignment with MIST (underpromise, overdeliver)

Alchemist Economics

Until now, Aludel rewards for $mist holders have solely derived from inflation. This has been an effective way to bootstrap the ecosystem + community and has successfully incubated several different core products.

In addition to inflation income, $mist holders will now be rewarded from the success of products within the system. 50% of all core Alchemist product revenues will be deposited directly into the Aludel rewards program on a fortnightly basis.

Inflation Distribution

1% inflation every two weeks:

  • 50% to LP rewards (Aludel)

  • 25 % to the Treasury

  • 25% Fractal

    • 20% rainy day fund

    • 30% seed new projects

    • 50% fund service teams (marketing, design, community)

Alchemist Types

Keyholder

  • trusted party entrusted with multisig keys

  • incentivized through reputation + maintaining and increasing the value of $mist

Senior

  • admin, protocol custodian

  • incentivized through maintaining and increasing the value of $mist

  • outstanding performers promoted to Senior

Builder

  • dev, artist, designer, researcher, operations

  • incentivized through builder stipend + maintaining and increasing the value of $mist

Initiator

  • founder, product manager, project manager

  • incentivized through product upside + maintaining and increasing the value of $mist

Crucible holder

  • investor, liquidity provider, project supporter

  • incentivized through maintaining and increasing the value of $mist

Token holder

  • investor, project supporter -- possibly not comfortable with risk of IL of liquidity provision

  • incentivized through maintaining and increasing the value of $mist

The Alchemist Council

To reduce inefficiencies caused by aggregate $mist holder voting events and to increase the speed of the decision-making process, Senior Alchemists make up the Alchemist Council.

Through a majority vote, this council has the responsibility to decide on the following issues:

  • Determining the usage of Fractal income

  • Funding of new projects and overseeing their milestones

  • Dilute the centralized role they hold responsible for the success of Alchemist. Make the ecosystem resilient.

There are no restrictions on who can become a Senior Alchemist/Council Member. Anyone passionate, capable, and who adds significant value to the project can become a Senior. Seniors are selected from Builder/Apprentice/Chaos Labs pools, or the broader crypto ecosystem.

Adding/removing council members

  • New Senior Alchemists are added and removed via a vote among council members

  • Any Senior Alchemist can propose that a new council member is added or removed

  • Once a proposal is made, the council has 7 days to vote

  • If the majority of council members vote aye, the member is added/removed

  • If a majority is not reached, the proposal expires

Proposed Members of the Alchemist Council

  • thegostep

  • ethen

  • Sal

  • Ri

  • Consaltus

  • Fiskantes

  • Nathan

  • Dire

  • Joeh

  • Stew

  • Daniel

Fractal Inflation Income Utilization

The Alchemist Council is tasked with determining the usage of Fractal income. The planned breakdown is as follows:

50% to fund service teams (builders, marketing, design, community)

  • Budget and distribution managed by an Alchemist Council sub-committee

  • Sub-committee acts as an operations team and is voted in and out via the council

30% to seed new projects

  • Utilized in line with the proposal submission process (below)

20% rainy day fund

  • Set aside and used as needed through a vote of the council.

New Ecosystem Projects

The Alchemist Fractal emphasizes empowering small, agile project teams to build within the Alchemist ecosystem. New projects are incentivized through:

  • Funding from the Fractal

  • Ecosystem builders to assist with product development

  • Support from the Alchemist ecosystem

  • Brand awareness from Alchemist project association

  • Direct upside through product success

Submitting a new project proposal to the Alchemist Council

There is a small fee (1 $mist) to submit a new project proposal to the council to increase the quality and decrease spam proposals. If the proposal passes, this fee is refunded. If the proposal fails, the fee is lost. Current builders are exempt from this fee.

Projects will be analyzed using an ROI-based approach to consider the value that they will add to the ecosystem. This ROI will consider both direct value (revenue generated and distributed to LPs) and external value to the Alchemist ecosystem (driving users to other products, community building, etc.).

We recommend that new project proposals use the following template: https://hackmd.io/G7Zn0YKMQmivXVBAeOfJww

Project Lifecycle

  1. The initiator makes a proposal

  2. Alchemist Council votes on the proposal

    • Simple majority for yes/no

    • Must fit within 30% budget to seed new projects

  3. Project execution phase

    • Team Discord channel controlled by the initiator

    • Written progress update every week

    • Product demo every two week

  4. Project completion phase

    • Review by council and update project proposal for a new cycle

    • Written introspective debrief by team

Revenue from core products within the ecosystem will be distributed as follows:

  • 50% to $mist liquidity providers via the Aludel program

  • 40% to the product’s founding team members (distributed at the team’s discretion)

  • 10% to the Fractal for funding future projects + service teams

If the project involves the creation of tokens:

  • 50% of insider premine (if any) distributed to mist LPs

  • 50% of insider premine (if any) distributed at product team discretion

  • Tokens must be launched through Copper + Crucible

Projects can be as small as one person building brand awareness. Or as big as a team of 5 Engineers building an entirely new revenue-generating product!

Next Steps

Following the Fractal implementation, the community and Alchemist Council will complete a retrospective review after three months on how the system can be improved and refined.