Thanks for all the feedback. I love a good controversial proposal. Get ready for a novel…
My opinions are my own
First things first, this proposal and my opinions are my own (just like WAGMI). I originally threw @o_rourke’s name on the proposal because I ran it by him, as I do with most things, but this is my idea. Not the core teams, not the DAOs, etc. Direct your hate my way - I’ve removed him to avoid association with the broader core team. This isn’t a core team proposal.
There are a lot of issues to unpack. Let’s start with the big issue: timing. This proposal was timed amid a debate around POKT inflation and a broader economic (and crypto) downturn. This proposal isn’t designed to solve price woes, especially during a crypto-wide sell-off. We’re now tied to the market good or bad, I understand that. I don’t believe it’s healthy to keep this level of inflation in a good or bad market. The argument about inflation should largely be separated from day-to-day market price action. While I do agree with @lex that it’s worth seeing how things shake out, it’s not necessarily something we want to punt on for months as the market is always shaking out.
To be clear: PUP-11 or PUP-12 HAVE NOTHING TO DO WITH THE MARKET CONDITIONS. I proposed WAGMI, similar inflation results, different approaches, pre-exchange listing, and pre-price run-up. I happened to publish this proposal during a market collapse and happened to publish the other during a run up.
The last thing I want is panic selling because of a decrease in rewards during a very uncertain market, but it also doesn’t mean that we can’t debate issues like this. Maybe I give our community too much credit, but I don’t want to baby them fearing they may overreact to a debate that’s been going on for over a month at this point.
On the topic of the Pocket DAO
The notion of “if the DAO wants more, it needs to do more for us (node runners)” is unfamiliar to me. DAO voters are the DAO - not the core team. I don’t even have a vote, so you’re asking yourselves to do more work. If you don’t have a vote - go get one. Everyone on this thread is likely eligible. If you’re expecting the DAO to do your bidding without participating as a voter or a contributor to Pocket, it’s my opinion, that you’re doing it wrong. If you want to help grow the DAO, talk to @JackALaing. If you’re concerned about my proposals, the most effective thing you can do is vote against them if you don’t like them.
In times like this, we should be rallying to the DAO asking how we can help. We should support it rather than ask what it can do for me. This is a community effort and it’s going to move a lot faster if more people contribute.
If the DAO numbers are the concern, we can calculate an acceptable return level that includes an increased DAO allocation. These are not mutually exclusive in my calculator. We can also strike the DAOllocation from the proposal altogether. It wasn’t part of my first draft, but I did some math and the DAO is getting crushed by dilution, so I figured it was best to include the issue in here. In hindsight, probably conflating too many issues.
On Parameter Specifics
The adjustment in the parameter still provides a very healthy return. 80% ROI annually is very strong in comparison to other crypto returns with similar risks. Why inject additional inflation into circulation if we don’t have to?
To run some numbers out: Let’s pretend the crypto sell-off continues and there’s an 80% drop from ATH of $3.20 (ish), that’s $.64 POKT. Multiplied by 32.877 that equals ~$21/day or $635/month. Plus, as I pointed out previously, this return is likely to grow as the network grows.
I’m open to @lex’s proposal to edit the proposal to give people time to digest it. We can also step down over time, which I think is reasonable. If I proposed something where we stepped down to this level over the course of 4 months, beginning with the first reduction in 30 days would that quell some of the concerns?
App Subsidization / App Grants
Pocket Foundation already does this through the portal. While we don’t give out tokens, they found it more effective to stake on their behalf. See PUP-9: Gigachad Pocket Portal Free Tier