What can't we talk about in official API3 community chats?

I frequently see messages deleted by mods in discord and the TG group saying “price discussion is not allowed” in official API3 community channels. Why not? What can and can’t we talk about?

API3 tokenomics, including general supply/demand characteristics and forces, are perfectly OK to discuss as this is directly relevant to API3’s protocol design and DAO contract structure.

We do not allow discussion about API3 token price in official API3 community channels. The intention is to avoid advertising or implying that price appreciation in the API3 token could lead solicited buyers of the token to profit.

Do not discuss API3 token:

  • trading and related profit/loss
  • exchanges and exchange listings
  • liquidity provision
  • price predictions

While exchange discussions should be avoided, for safety purposes API3 moderators may confirm the token contract address or whether an exchange’s API3-related announcement, release, or listing is accurate. Everyone is urged to exercise extreme caution in case of malicious actors.

We do not refer to API3 token holders or DAO members as “investors”. Investment is not a primary intended purpose or use of the API3 token and implies facilitation of the features listed above.

When discussing the API3 token in official channels, do not use the words:

  • equity
  • dividend
  • shares of API3
  • right to profits

These terms are inaccurate and can lead to improper legal interpretation. API3 token stakers/DAO members do not “own” part of API3 “equity” as there is none; they have voting and proposal power in the governance contract when staked. There is no equity and there are no shareholders in the legal entity (API3 Foundation, an ownerless not-for-profit limited foundation company) which “wraps” the API3 DAO, but token stakers permissionlessly control the DAO treasury by smart contract governance proposals and votes. More detail is available here.

The API3 token was made available to the public in a “Token Distribution Event” on a decentralized exchange, and not via “ICO”. It was entirely completed by smart contracts (with all proceeds routed to a DAO treasury smart contract) rather than facilitated by a centralized issuer or broker. The token distribution interface also geo-blocked certain jurisdictions and carried numerous disclaimers and disclosures.

An API3 “team member” means someone who has received a grant from the API3 treasury by a successfully passed DAO proposal and has signed an agreement (usually, a “Grant Agreement”) with the API3 Foundation (the DAO’s legal wrapper) to preserve confidential terms where required by a third party entity contracting with API3. Anyone can become a “team member” by this process.

Signing a “Grant Agreement” is only necessary if a grant recipient wants to use confidential information of a counterparty with API3 Foundation in achieving the goals of their proposal. Otherwise, anyone can make a DAO proposal and, if passed, receive the applicable requested grant without signing any legal documents.

The term “insurance”, while used in API3’s white paper for illustrative purposes, is inaccurate and could be misleading (in part due to regulatory implications and definitions). “Service coverage” is the proper term for API3’s quantified security product.

The only non-public or confidential API3 information, discussions or documents are by request from counterparties and thus subject to non-disclosure agreements or confidentiality provisions in grant agreements. This is the reason for certain things being described as “not yet public”, as the counterparty may not have yet consented to disclosure. Otherwise, everything is publicly accessible in the API3 docs, on-chain, on GitHub or in the forum, or by simply asking questions!

Thanks to @Erich for this info and for answering the tough questions!

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If I want to stake tokens and participate in DAO governance I need API3 tokens. I would need to get them from an exchange. I can’t do what is the primary reason the token exists unless I get tokens from an exchange. Then why can’t we talk about exchanges and exchange listings? Isn’t that just part of telling people how to participate in the DAO?

It is perfectly OK in an official API3 channel for you to ask whether a token listing is legitimate. This is what we mean by, “API3 moderators may confirm the token contract address or whether an exchange’s API3-related announcement, release, or listing is accurate.”

If you find an exchange you like, for example on CoinGecko, Coinbuddy, or CoinMarketCap, then you can ask API3 moderators and team members whether the exchange is legitimate and we will confirm or deny its validity to help ensure DAO member safety.

To quote @Erich:

What we avoid is any speculation on future exchange listings and directing people to any certain exchange or process. The former because it implies speculation on future value/price which should be avoided, and the latter because directing people to specific exchanges can produce unnecessary risk if that exchange has an issue, and may confuse people that API3 has any role in how exchanges work or support customers (we do not).

Speculation can lead to misleading and sometimes fraudulent statements-- regardless of who says them, allowing them to be posted and confuse readers, or improperly solicit purchases, in a maintained channel can be problematic.

Exchanges are not the only way to acquire API3 tokens. Other ways to get API3 tokens include:

Good question! And thanks for making us clarify. As always, beware questionable messages or URLs, and confirm the token contract address. Use extreme caution when choosing where to connect your wallet!

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