On the staked amount. So it’s a steep penalty.
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High risk, no reward for now.
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Yes, fee rewards from staking are forgettable for now. The economic reward is in the airdropped tokens from the Origins launchpad. How significant that reward is, will be much easier to assess once Babelfish tokens distribute.
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Thanks for your thoughts, @light. Like it and hope to get to a fair outcome. Thank you.
In your reasoning @yago, I am missing a good reason for a long term staker who is poor where he has an advantage against the so called “richer”. The benefits of “launchpad projects” are equally there for the rich or the poor unless you restrict this somehow and make it more equal. Furthermore this launchpad and its projects is an unknown which shouldn’t be accounted whether to stake into Sovryn or not.
What makes me really questioning and I suggest to give a solution for it is to lower the slashing for the “poor” who has been long term staking but is not convinced about current staking rewards. A staker supports at a higher risk a young precious project with unknown variables. The rewards do not reflect at all the situation of “early stakers” taking more risks. In contrary.
p.s. in your equation you do not consider the long term staker which is not vested.
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Love it, @light. May I suggest one other thing as it seems that stakers or not needed anymore so dramatically to secure the network: Get early long term non vested stakers out of this “trap” of getting slashed as they can switch then to the more attractive side of LPs. Is this possible?
Also do I support the comment of @magicmike (need to integrate this in here as I only can write 3 comments for a certain period. sorry). It seems, staking and network protection is not an issue for Sovryn so why slashing so high long term and non vested stakers? As long term non vested staker I would immediately move towards LP and support Sovryn over there. Staking is dead capital for some of us and this can’t be in the interest of Sovryn neither if we could support Sovryn by investing SOVs much more efficiently on the LP side. No?
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Slashing penalties will not be removed. Those fees are distributed to stakers with stronger hands.
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This is not a solution nor an answer to the question(s) mentioned above.
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LP gets 0.3% fee of the SOV/rbtc pool.
I propose that that stakers get a small cut.
0.035%, which we take from LP. Seems like the smallest amount we can take without causing pain to the LPs, whilst still giving stakers a reasonable cut.
LP will then make 0.265% fee per swap, and stakers 0.035%. Up for debate.
The idea being that
- if stakers dont get a cut, why should they secure the protocol
- passive income is the basic value proposition of the SOV token.
I dont think a dex where SOV stakers dont get a cut from sov pool when staking the dex for security is how Sovryn should be. Staking reward % should not be huge, they should just be on all pairs.
It’s my understanding that devs already want to bring such an update, but priorities bid that other things be implemented first. Our devs are badass and we should wait for them to do their magic, since they are very busy creating and casting spells. We have patience.
Until we can make a SIP for new staking mechanisms, I propose that from the adoption fund some airdrop goes to early stakers that staked for more than one year, and a bump up for 2-3 year stakers. I also think that for sentiment and equality, all stakers be eligible for some reward, but to give an extra appreciation to those that have committed head-first to the long term. Everything weighted by size and time on the blockchain. This can also wait for the mages to be ready, but coming to a resolution would greatly boost morale amongst the staking chivalry!
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If this reply can become a SIP, I would support you with all the voting POWA!
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I agree with @AlykzAlex last post as well. A small percentage of the SOV/BTC pool going to Stakers feels like it strikes a good balance.
I’d like to add another related point that I believe is important: the Sovryn wiki is unclear about what platform revenues are included in the staking rewards. When I initially staked a good amount of SOV for 3+ years, many months ago, I was under the impression that a tiny part of all transaction fees on the platform would actually go to stakers. I know of some others who believed the same.
See the phrasing here:
Stake for rewards
Aside from Bitocracy participation, there’s a financially-rewarding reason for staking SOV. Tokenholders who stake their SOV receive staking rewards , a pro-rata share of the revenue that the platform generates from various transaction fees plus revenues from stakers who have a portion of their SOV slashed for early unstaking. This gives SOV holders the ability to earn passive revenue from their staked SOV.
Staking rewards paid to stakers from protocol revenues are denominated in the token in which the fees were originally paid. For example, if a user borrows RBTC then their interest fee will be paid in RBTC, and a portion of that fee will go toward staking rewards.
“revenue that the platform generates from various transaction fees” can easily be understood to include the standard trading fees. Various is also vague, though in fact the operative word here. What transaction fees are included should simply be specified.
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I believe the phrasing was chosen to allow some flexibility while we shape our more final form here in version Alpha.
I created a new thread to discuss my idea:
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Ok this is news to me too. Thanks for pointing it out. I don’t get why stakers don’t earn a percentage of ALL fees?
Was this an oversight or by design?
Hey Jonezee, I wrote that section. Thanks for the feedback. I had actually intended to link to the fees page which specifies that breakdown, it looks like I missed putting that link into the final draft when I updated that part of the wiki. I fixed it now. And here is the link for your convenience: https://wiki.sovryn.app/en/sovryn-dapp/fees
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Hi Light, I might be missing the obvious but that link doesn’t clarify which fees SOV stakers earn a share of vs not.
Here’s the key part, Aidonaks:
So Staking rewards are:
- 0.15% of all margin trades
- 0.09% of every borrowed loan
- 10% of all interest paid by borrowers on their loans
If I’m understanding correctly.
So “collected by Sovryn” = “paid to stakers” ? I thought it meant that bit goes back to the project itself.
From what I see, it can only mean collected by Sovryn’s Stakers.
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