BUILDERS ALL-HANDS (FEB 22ND)
Call Highlights:
Morse & Shannon Tokenomics (Useful QoS)
Shannon Testnet Update
Grants Update
Karma Gap Demo
Morse Tokenomics:
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Currently, for every one POKT burned by gateways, 135 POKT is minted for nodes. This setup could lead to self-dealing, with Gateways potentially directing traffic to their own nodes for a 13,000% gain. Crazy!
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In Morse, Gateways operate on a permissioned basis, requiring legal contracts signed with PNF to prevent self-dealing.
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But the burn-to-mint ratio isn’t all bad, as it creates a staking economy where stakers can earn up to 9%. This incentivizes holders to lock up their POKT.
Shannon Tokenomics:
- In a permissionless Shannon world, the ideal tokenomics would look like this
- But we are a long way away from 25 billion daily relays at Shannon launch. Having a 1:1 Burn/Mint ratio with only 400 million relays currently, stakers would receive significantly reduced rewards, which would essentially kill the staking economy.
This leads to SHANNON’s TOKENOMICS TRILEMMA.
How do we roll out Shannon with an economic model that ticks all the boxes – permissionless gateways, self-dealing checks, and staking rewards that keep stakers from day one?
One proposed solution to solve it is “Useful QoS” (working title), proposed by @shane.
Useful QoS:
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Useful QoS is about penalizing nodes that are not useful for app/gateways. If a node can’t operate in a manner that is useful for apps and gateways it is jailed. Gateways are incentivized to find the best nodes and nodes are incentivized to meet their quality requirements.
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Useful QoS would:
- Distribute rewards equally to all nodes in a session, eliminating the incentive for Gateways to target own nodes.
- Jail nodes that constantly perform poorly or do not perform at all in multiple sessions.
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It would also delay rewards for 6 sessions to ensure that only useful nodes are rewarded. This delay allows the network to identify and penalize underperforming nodes before rewards are distributed.
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This solution is theoretical and research is still underway to figure out a few of the mechanics. But very interesting indeed.
Now for the other updates:
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Goal to have Shannon’s migration from Cosmos SDK 0.47 to 0.50 completed before #ETHDenver.
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A reminder that bounties are live.
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Karma Gap, a Quick Grants management and impact reporting tool, is also live .
