Update fip-set-the-mining-reserve-to-zero.md

- Edited quote to address Jenni's concern
- Edited definition of "remove"
- Added a line on what the total supply after removal should be is
- Edited design rationale
- Added security / product considerations

Author: jnthnvctr

FIPS/fip-set-the-mining-reserve-to-zero.md

@@ -16,20 +16,20 @@ created: 2024-07-25
 
 ## Simple Summary
 
-This proposal aims to remove the mining reserve tokens [282.9m](https://filfox.info/en/address/f090) by setting its value to 0. This does not preclude other FIPs from being proposed to create new tokens (as future incentives, funding iniatives etc).
+This proposal aims to remove the mining reserve tokens [282.9m](https://filfox.info/en/address/f090) by setting its balance to 0. This does not preclude other FIPs from being proposed to create new tokens (as future incentives, funding iniatives etc). After this FIP, the total supply of FIL should be 1717066618.96 (2b minus the current amt in [f090](https://filfox.info/en/address/f090)).
 
 
 ## Abstract 
 
-The [mining reserve](https://spec.filecoin.io/systems/filecoin_token/token_allocation/) was intended to be a reserve of tokens to incentivize future types of mining. In the spec, this is noted to potentially "not be enough" and that the community will "decide whether to make adjustments with unmined tokens". 
+The [mining reserve](https://spec.filecoin.io/systems/filecoin_token/token_allocation/) was intended to be a reserve of tokens to incentivize future types of mining. In the spec, this is noted to potentially "[not] be enough" and that the community will "decide... whether to make adjustments with unmined tokens" (last line of the paragraph on the [mining reserve](https://spec.filecoin.io/systems/filecoin_token/token_allocation/)).
 
-This proposal seeks to remove the mining reserve. This does not preclude new tokens from being created - rather that any new incentives should be created at the point when new forms of mining are introduced rather than relying on a set of pre-minted tokens.
+This proposal seeks to remove the mining reserve by setting `f090` to have a balance of 0. This does not preclude new tokens from being created - rather that any new incentives should be created at the point when new forms of mining are introduced rather than relying on a set of pre-minted tokens.
 
 ## Change Motivation
 
 There are a number of reasons why the mining reserve can be viewed as a net cost: 
 1. The role of the mining reserve is non-standard - at the time of authoring, no other L1 has this amount of supply left up to potential release (~50% of the current supply, 15% of the total max supply) which creates a large gap between the FDV and Market Cap.
-2. The mining reserve reinforces an anchor around Filecoin being a fixed supply currency. Given there is always the ability for the community to fork to change the supply, this is an unnecessary meme to reinforce - but constricts discussion.
+2. The mining reserve reinforces an anchor around Filecoin being a fixed supply currency. Given there is always the ability for the community to fork to change the supply, this is an unnecessary meme to reinforce - but constricts discussion. 300m should not be assumed to be the default (in either direction as a maximum or minimum) for the amount of tokens available for new mining - any new proposal should include its own assessment for the tokens required.
 3. The mining reserve requires a FIP to use (the same process for creating new tokens) - in the event these tokens are needed; its unclear there would be any _less_ pushback in the community if were to create new sources of dilution.
 4. Filecoin's inflation is already quite high relative to other ecosystems - removing the mining reserve should change the default from creating net new sources of inflation to bring new value flows into the ecosystem (vs optimizing the inflation already in the network)
 
@@ -43,14 +43,30 @@ There are a number of reasons why the mining reserve can be viewed as a net cost
 
 The proposal aims to move away from relying a fixed amount of tokens in the mining reserve that might be used for new mining, to having new FIPs be proposed explicitly creating (or redistributing existing) incentives.
 
+There has been some discussion about whether this should be achieved by setting f090 to 0 or by burning the tokens in f090.
+
+One pro to burning is that there is a "narrative" value to saying the network is burning 15% of its max supply. However, this has a related con - in that it may overly anchor the ecosystem to only destroying tokens without considering how inflation can be used to productively grow the ecosystem. 
+
+One pro to setting f090 to 0 is that it functionally has the same effect as burning - without the same connotations of simply destroying tokens for the sake of it. One slight con, is that it may not have the same "shock" value as saying burn. 
+
+For the intended purposes, listed above in Change Motivation, setting the mining reserve to 0 achieves the main goals (and in the author's opinion doesn't substantially sacrifice a narrative goal as the total supply of the network is still decereasing). However, it should be noted that the difference between these two in practical terms seems very slight and is mostly subjective. 
+
+## Product Considerations
+
+This should not affect the product as these are not tokens that are being used. Any future proposal that might need new sources of inflation is not blocked from including new incentives in their proposals.
+
+## Security Considerations
+
+This should not affect the security as these tokens are not used to incentivize any action. Any future proposal that might need new sources of inflation to help incentivize / secure new mechanisms are not blocked from including new incentives in their proposals.
+
 ## Incentive Considerations
 
 The proposed change requires future explicit proposals (aiming to incentivize new forms of mining) to explicitly mint new tokens. This should not change the difficulty of making such proposals, as both (using the mining reserve, creating new tokens) would have the short term effect of diluting stakeholders. 
 
 ## Implementations
 
 1. Set the balance of `f090` to 0.
-2. Adjust all circulating supply dependencies and the invariant checks to recognize the total supply is no longer 2b given the mining reserve has been set to 0. The total supply of the token should be the sum of (mined) + (vested) + (disbursed) - (burned), where disbursed is the tokens that were released (~17.1m tokens) at network launch for SPs in default.
+2. Adjust all circulating supply dependencies and the invariant checks to recognize the total supply is no longer 2b given the mining reserve has been set to 0. The total supply of the token should be the total supply of FIL should be 1717066618.96 (2b minus the current amt in [f090](https://filfox.info/en/address/f090)).
 
 
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