Eco Trustees vote on monetary policy settings once per generation.
During the first 10 days of a generation, Trustees submit and debate proposals for the next monetary policy cycle. Proposal submissions are limited to one per Trustee, and may be modified or withdrawn until the end of the 10-day submission period. Each proposal must be in a standard format, specifying a value for all possible policy settings.
During the next 3 days of a generation, after the proposal submission window has closed, Trustees independently vote on the next policy from the list of proposals. Trustees vote using a ranked-choice system, where proposals are assigned points based on how they are scored in each candidate’s ranking. The points are determined by the number of proposals, and the ranking that each candidate gives; the proposal that ends with the most points wins.
The next day — Day 14, the last day of the present generation — the new monetary policy is revealed and takes effect for the next generation, and the time clock starts over with a new proposal and monitoring period.
In v1.0, Trustees have three monetary policy functions that they can vote on:
- The first is a linear supply change, where all ECO balances go up or down while preserving the same relative amount of ECO each wallet holds.
- The second is randomized inflation, where new supply of ECO is distributed to randomly selected ECO addresses.
- The third is interest rates, paid through deposit vaults having a timed expiry.
- A fourth policy function, transaction fees, is planned for a future upgrade but not implemented in v1.0.