Behind the scenes, we’ve been researching possible upgrades to SSV’s tokenomics, and I'm excited to share our progress thus far. Since our mainnet launch is approaching, and because it might be appropriate to start executing changes, we thought it seemed like a good time to open up the discussion more formally to the community. There are still many complex decisions and issues to navigate, and these issues are highly simplified here. But together, let's do our best to confirm our immediate preparedness for mainnet, then take our time to engineer and refine a long-term design and plan that will create a solid foundation on which we can build an ambitious future. The following is the result of many discussions with a long list of talented contributors, so the credit belongs to all of them (thank you all 🙏). However, note that the plan presented here only represents my own perspective, and consensus must still be reached among the SSV team and community. I don’t claim that this is the optimal solution, and we won't move forward with anything unless there is wide support (and ultimately, a DAO vote). So I encourage everyone to give their thoughts, ideas, and feedback to help guide the project 🙂 Our Current Tokenomics For a complete description of the current tokenomics design, see the documentation. However to summarize, using the figure below (taken from the documentation), we can see that ETH stakers on the protocol pay operators a fee (in SSV tokens) to run their validators. A small additional “network fee” is also charged to the staker, which is taken by the DAO treasury as revenue used to fund further protocol and ecosystem development, as well as other activities approved by the DAO. This network fee is calculated as a percentage of the operator fees. Proposed Changes
3/4/2023Overview As we launch SSV's Shifu V2 Testnet and move closer to a subsequent release candidate, the details of the network are beginning to solidify. But at this moment, before all of this is finalized in preparation for mainnet launch, we have an opportunity to augment the project's tokenomics to improve the network's properties, support the SSV community, and better serve the greater Ethereum ecosystem. This article illustrates how we might seek to achieve such effects and presents some example solutions for us to consider, including: Encouraging decentralization by giving advantages to small operators Increasing network and market stability by incentivizing users to hold more SSV Creating a method to "stake" SSV and earn a return without needing the DAO to mint new tokens to pay for it Increasing DAO governance participation by incentivizing regular voting But please do not view this as an exhaustive list. Instead, the purpose of this is to explain how our objectives can be transformed into tangible features, and the primary concept that I wish to convey is this: If we can define objectives, and if we can formulate those objectives in terms of measurable metrics, then we can design mathematical mechanisms to encourage those desired properties. So let's discuss what our objectives should be and then work towards designing the corresponding mechanisms that support them.
8/31/2022or
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