Stake-based Voting & Rewards Proposal Feedback From EOSSV
Recently Block.one proposed a proposal, on new staked based voting and reward mechanism:
We liked the proposal, and here are some early thoughts and feedback, primarily on three aspects:
1 Additional yield to EOS staking
According to the analysis, we can have 10%+ system level yield through REX, much higher than currently (less than 3%), which can attract more EOS token holders to have EOS tokens and stake.
Also, it is a healthy overall inflation, with data collected from other smart contract platforms as well. It’s more like a real economic ecosystem.
2 It encourages a smoother votes distribution.
Now we have the issue of vote concentration and somewhat “cartels”, due to bpay and other factors. Which make it very hard for new comers to break into top 21.
But with new proposed model, we will have less votes concentration, and more dynamic play into top 21, which will make EOS more decentralized and anti fragile systemwise.
3 Not directly taking away BP rewards, which will make the transition more practical and much easier.
Hey we are a BP, we do have interests involved.
But, we also think current BP rewards are not best used as well.
As the experience for the past 3 years told us, BPs (or any type of players)in this ecosystem, will try to max out ROI of their own. And rent seeking stuff, will happen.
It is not EOS specific though.
Look at MEV on ETH. It’s a taboo to mention a while ago, but many players in the ecosystem are doing it now.
So this practical style of keeping current BP rewards untouched for now, will make much less pushback for the transition to happen.
These three are the main feedback for the proposal. We think it can help to achieve a better alignment between EOS and its token holders.