Manna 2.0 is a new asset to be distributed at a rate of 1 per day to every human verified on BrightID, deployed on a fast, free Ethereum sidechain. Users of Manna 1.0 will be eligible to claim a root reduction of their initial holdings.
In part 1, we gave an overview of the challenges that were experienced with Manna 1.0 and some of the solutions aimed at resolving them. Underpinning nearly all these have been the issues surrounding centralization, the importance of simplicity, and the needs of aligning the technology and governance to the overarching mission of Manna. Now, we will provide more granular details on precisely the changes that will be made.
Firstly, Manna 2.0 will be hosted on IDChain, a proof-of-authority blockchain developed by BrightID. This will be an entirely new blockchain and asset from Manna 1.0. Those with existing holdings in Manna 1.0 will qualify for a claim of the Manna 2.0 asset based on the amount of the original Manna they currently own. (More details later in the article)
IDChain was initially created to synchronize BrightID node operators, but offers a variety of compelling features that make it a great fit for other projects including Manna. While there are numerous benefits to IDChain, below are a few of the most important:
- Free to Use Once Verified Unique
Unlike other blockchains that require each wallet owner to purchase tokens to pay gas fees in order to send transactions, IDChain wallets provide every verified unique human a lifetime supply (average) of gas for free.
- BrightID Integration
Building on IDChain will allow Manna to integrate BrightID at the base layer of the blockchain. This will more easily enable the coding of distributions and determination of uniqueness in a decentralized and automated manner.
- Ethereum Virtual Machine (EVM) Compatible
Many of the Ethereum tools and infrastructure within the EVM ecosystem will be available to build and integrate with Manna.
If you’d like to learn more about IDChain, you can do so here.
1.5 Root Reduction
A core principle of Manna is that the value created is done so through equitable distribution to all users. In the founding years, a premine was created to fund Manna distributions as well as bounties for project development, sales, and the referrals program. At the time, this was the only available solution and allowed for the testing and implementation of an initial version of Manna. Unfortunately, it proved problematic in that a large amount of Manna entered circulation through means other than the general distributions.
To resolve this in a simple and equitable manner, all Manna claimed on the new blockchain will be done so using a 1.5 root reduction. Further, when a Manna user claims their Manna 2.0, they can continue to claim that amount each year for 5 years. There will be 20 Million Manna available per year and a total of 100 Million Manna over 5 years for the old Manna users. This amount is enough to sufficiently issue all current holders of Manna based on the 1.5 root reduction. Any excess that is not claimed will be rolled over to the H4H DAO. Manna holders will have ~3 month window to claim their Manna 2.0, after which they will forfeit their opportunity for their claim until the following year. At the end of the ~3 month period each year, the remaining unclaimed Manna will be managed by the H4H DAO. In order to claim Manna 2.0, users will be required to have a verified BrightID account. The BrightID can then connect to one wallet of that users choosing.
Example 1: Manna User X had 1000 Manna 1.0 . After the 1.5 root reduction, User X can claim 100 Manna 2.0 each year for 5 years, for a total of 500 Manna 2.0.
Example 2: Manna User Y had 1,000,000 Manna 1.0. After the 1.5 root reduction, User Y can claim 10,000 Manna 2.0 each year for 5 years, for a total of 50,000 Manna 2.0.
The reduction will make it so that once Manna distributions are resumed, general distributions will quickly become the overwhelming majority of the means by which Manna has entered the money supply and market cap. There is also a substantial amount of Manna currently held by Hedge for Humanity. This Manna can not be claimed in Manna 2.0 since H4H is not a human.
As you can see below, this will result in a very substantial reduction in the total money supply in Manna 2.0 from ~2.3 billion to just 20 million Manna. That is over a 99% decrease in the total market supply at the commencement of Manna 2.0.
Current Circulating Supply: 661,236,020 MANNA
Current Total Supply: 2,360,947,806 MANNA
Manna 2.0 Total Supply at Launch: 20,000,000 MANNA
1 Manna Per Day
Finally, Manna 2.0 will be distributed at a rate of 1 per day to every human verified on BrightID.
The initial economic vision of Manna was to increase the total supply by a fixed percentage every year. This supply increase would fund the distributions of Manna to all participating and verified unique users. It was inspired by the inflationary economics of gold and modern central banking systems with the difference being that new value created would be distributed equally to all participants in the economy rather than to select individuals and groups.
This proved problematic for numerous reasons. First, it relied heavily on a central authority (H4H) to determine the inflation rate and oversee the economic policy. Second, it created a very complex and ever changing value offering to users. With every new user entering the network, each current user would receive less. It also didn’t provide a clear symbol of what the value of Manna actually was.
By distributing 1 Manna per day, it becomes a simple and predictable distribution amount. It is an easy to understand measurement of one day of life. Each person has a finite number of Manna they will ever receive based on the number of days they are alive.
The above mentioned changes are all in development and we will provide more details on how to claim Manna 2.0 as well as a general roadmap soon. We will be holding an AMA to answer questions regarding Manna 2.0 as well as general questions on any of the H4H projects. If you’d like to submit a question, you can do so here.
Thanks to all our supporters past and present. Together let’s create a brighter, more abundant future!