- Author(s): @adam
- Parameter: RelaysToTokensMultiplier
- Current Value: .01
- New Value: Variable, decreasing over time
- Related Proposal: PUP-11: WAGMI Inflation
The WAGMI proposal has garnered a significant amount of attention and support over the last month and a half as a mechanism for controlling inflation and providing sufficient rewards to nodes - in all scenarios.
I will not rehash what WAGMI is or how it works in this proposal, for that, please view that proposal directly. This proposal will govern the first several parameter changes of WAGMI if both are approved by the DAO. Below, I will attempt to detail a fair and simple means to gradually reduce token incentives over time.
Node runners, new and old, are seeking security in token incentives so they can plan their node operations.
Many are concerned about a death spiral that a single, significant reduction would bring. Further, many have risked much to stand up their new node businesses and we don’t want to cut them off at the knee.
This plan provides for a gradual step down to token incentives to the RelaysToTokensMultiplier via WAGMI to accommodate all who are part of the Pocket ecosystem.
I propose the specific WAGMI rates to be:
- Upon passing: Target Inflation Rate = 100.00%
- Passing +30 days: WAGMI Target Inflation Rate = 90.00%
- Passing +60 days: WAGMI Target Inflation Rate = 80.00%
- Passing +90 days: WAGMI Target Inflation Rate = 70.00%
- Passing +120 days: WAGMI Target Inflation Rate = 60.00%
- Passing +150 days: WAGMI Target Inflation Rate = 50.00%
All else equal this would look like the following for per node rewards:
- Upon passing: Target Inflation Rate = 84.85 POKT/Day
- +30 days: Target Inflation Rate = 76.36 POKT/Day
- +60 days: Target Inflation Rate = 67.88 POKT/Day
- +90 days: Target Inflation Rate = 59.39 POKT/Day
- +120 days: Target Inflation Rate = 50.91 POKT/Day
- +150 days: Target Inflation Rate = 42.42 POKT/Day (or 15,486 POKT/year)
This would address a vast majority of the concerns raised by commenters on the last two proposals (PUP-11/PUP-12). After 150 days, I propose that we re-evaluate the landscape through a new proposal. For the avoidance of doubt, the WAGMI Target Inflation Rate of 50.00% would stay in place until a new proposal replaces that value.
@adam - Wizard of WAGMI, Stirrer of the Pot, Least Popular Proposer, number one source of economics related angst
This proposal is my opinion and does not represent the opinion or position of Pocket Network, Inc., Pocket Network Foundation, or the Pocket DAO.
Copyright and related rights waived via CC0.