The way the staking rewards are not how they ought to be in my opinion. Therefore I launch this discussion. Some disclaimers before we proceed:
- Sovryn encourages longterm planning and commitment. Our token mechanics should incentivize low time-preference, not the crazy yields of degenerate fruit-tokens.
- It is my personal understanding that developers are already planning to rework the staking rewards. Our devs work hard and are very busy; in my opinion we ought to meet them with respectful patience until this is addressed. Until then, we can discuss.
My view is simple.
1 The security of the protocol comes from staking. Why should stakers secure a trade or swap they dont earn a share from?
2 The basic value proposition of the SOV token is the revenue you earn from staking it.
It makes absolutely no sense that stakers only earn from some pairs. I dont see the logic. I propose drafting a SIP which states: all present and future pairs on Sovryn platform will have a fee cut for the stakers.
I think this has the most logic and creates the optimal value proposition for the SOV token. To clarify, the rewards needn’t be huge, as staking is low risk, low time preference endeavor, but there ought to be rewards on all pairs.
Regarding Sov/btc pool, I propose a 0.035% cut to the stakers, taken from the LPs.
So LPs will get 0.265% instead of 0.3% fee per trade. This seems like the smallest number to create the least pain for LPs, and still mean something for the stakers. The number is up for discussion.
Perhaps 0.27% for LPs and 0.03% ( 1/10th ) is actually better.
I dont think it is wise to increase the total fee, since that makes the platform less attractive for user. I say the stakers and LPs will have to come to an agreement.
I propose that from the adoption fund some airdrop goes to early stakers that staked before any changes would be implemented. This will compensate for the fees they didn’t earn on. Those who staked for multiple years ought to get a bump up in recognition of their chivalrous gesture towards the platform.
Those are my thoughts towards a healthier platform. Let me know what you think and we can try to prepare a SIP to assist the devs!