dApps Staking v3 - proposal

General
154

Here are my feelings about the dApp Staking V2, V3 and my suggestions.

dAppStaking V2 Pros:

  • the dApp rewards are linear, it seems fair for all dApps.

dAppStaking V2 Cons:

  • the user stakes and forget. It means the user doesn’t vote for the active dApps,
  • too many rewards for certain dApps,
  • significant inflation.

dAppStaking V3 Pros:

  • the voting and build sub-periods fix the issue “stake and forget”,
  • limitation of inflation: the total amount of rewards allocated to the dApps is fixed per tier. If a tier is not filled, the remaining rewards are not minted (or burned if you do marketing),
  • adapt the rewards given to the dApps based on the token price. This way the dApps rewards is stable in USD.

dAppStaking V3 Cons:

  • thresholds: feeling of injustice and non-meritocracy,
  • adapt the thresholds based on the token price. Too difficult to predict for the dApps. With the system of “bonus given to stakers if they don’t change their stake”, the dApps are “blocked” if they go down in the tiers only because the token price downs.
  • except if I am wrong, only dApps support inflation limitation. Both actor should support it.

Suggestions:

  • remove the tiers and use a logarithmic function (or more sophisticated function),
  • keep a minimum threshold: dApps with less than X tokens receive no reward,
  • keep the voting and build sub-periods,
  • continue to adapt the rewards given to the dApps based on the token price,
  • both actors should support inflation limitation. Specify the max amount of tokens given for stakers and dApps, and share it between stakers and dApps. If you want to reduce the inflation, reduce this amount for stakers and dApps.
  • to avoid inactivty or bad bahavior of dApps: create a framework for dApps when they are in the dAppStaking:
    • Each dApp must publish a quaterly activity report. If this report is missing for 6 months or if the report does not convince the community, the community could propose to delist the dApp.
    • limit bribes, only 20% maximum can be given back to the stakers and at least 60% of the rewards must be use to develop the ecosystem.
    • probably use different frameworks for NFT collection, DAO and dApps.
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