A fixed minimum validator charge for all Validators. All validators to charge a minimum of 9% commission made up of a mandatory 3% burn contribution to make up the burn numbers currently being achieved and a further 3% to be sent to the community pool to help fill this pool quicker. All validators to start making at least 3% commission (they are free to charge more).
Levelling the playing field will also ensure that validators don’t feel obliged to run at a loss to compete with larger validators that can afford to run at those losses to increase share holdings. This will also hopefully help balance out validator bias with those looking to simply stake with the best rates and lowest fees alone. This will also hopefully result in a more even spread of investment across all validators due to no particular validator being able to massively under cut making proposal votes less dependant on a handful of validator votes.
The Process & Reasoning
Allnodes have contributed roughly 220m to the burn wallet since offering their fees earned so far this year (starting the 1st of Oct 2022) at 5% commission charged. Allnodes represents approximately 17% of the staked coins. So on average they are roughly burning 100m Lunc coins per month at their 5% fee. So if they were to burn 3% this would equate to approximately 60m coins. If all validators were burning 3% of the commissions earned this would equate to approximately 350m Lunc coins burned every month at the current staking numbers (this will of course increase as staking numbers increase or when people re invest and compound their rewards). Staking numbers have increased from day to day meaning this is a genuine burn proposal which should see burn numbers continue to increase, especially as daily volume increase with more projects being added.
The other advantage of this proposal would be that 350m Lunc coins every month would also be sent to the community pool and help build this fund, again as staking numbers increase this pool would also build considerably.
In addition validators would start to take their share of this 350m coins and start to gain some rewards and move away form running at losses.
All of this would cost all those that currently stake their rewards a mere 9% of their earned rewards, a very small price to pay to help build the community, increase burns and start to reward validators all at the same time. This would also be a way of getting to the larger validator nodes that are owned by exchanges like Kucoin for example and making them contribute to the burns. Also because the 9% is taken at source no one would necessarily miss this from their daily rewards.
I hope this proposal makes sense, just an idea and thought, I welcome your thoughts and input.
I dont believe this is something will being good outcomes to the community
Why not out of interests sake? I think this would become the sixth biggest burner within one month and rise to the fourth biggest burner within 3 months. It is vital to increase burns especially with proposal 10893 passing reducing the amount of coins being burned due to re-minting for the community pool(which i realise is important).
It would also help contribute towards community pool and help even out delegators across the validators helping to dilute the huge voting advantage some validators enjoy. I struggle to see the bad side?
pft we couldn’t even get 4 weeks of burning at 1.2% what makes you think people are going to agree to a mandatory 3% for stakers.
The validators will be incentivised by the 3% for them also, 9% staking reduction is a small price to pay for the fact that the community pool and burns will increase. This burn is separate from transaction fees so wont have a negative impact on transactional volume. I feel we moved away from the 1.2% burn tax too soon, I also personally think by reducing the current burns by another 50% was a bad idea, but this proposal at least will add some burns back into the mix for a very small personal sacrifice and the staking rewards will still be very worth having.
I would be curious to find out what any validators think of this proposal? Also would this be technically possible and something which could be governed?
- This Proposal Would Get A Yes From Me
- Yes But Change Parameters
The remint proposal is complete rubbish. I no longer burn a single lunc if it is used for another purpose for which I do not agree.
The overall concept is not a bad one but I think the percentages are too high. It would be much cleaner and equitable for the percent sent to the burn wallet to be equal to the current tax on other transactions. We do not want to deincentivise delegating coins.
@Swocrates thanks. I don’t think it will be missed from delegators, 9% gone from free returns is nothing. Any less and the burn, community fund and earned commissions will not be worth having.
The extra money for the community pool can create more utility which will increase on chain transactions and result in more money being earned for both delegators and validators. You must of noticed how when we get a spike in transactional volume you get a big boost in earned staking rewards.
This is a taste of what we can all have daily with increased volume that is consistent, we sacrifice a little now to gain a lot, we aren’t losing we are investing in the future which is what most delegators are looking at, longer term gains with short term rewards along the way.
This proposal has been put forward for funding if anyone thinks its worth the investment, Im conscious there are many voting to veto at the moment and I’m not willing to risk any more money one a proposal that the community doesn’t want, once bitten twice shy! People have contacted me directly and want this proposal put forward so I thought this way let the people vote themselves. proposal number is 11073 (not a scam proposal!) or click here: Terra Station