Sharing a gem (in my opinion): Proof of commitment

Oct ‘20

Hi! I came across a proposal for Proof of Commitment on mStable forum and I really feel like something worth discussing here.

I'm going to copy the main idea from the original post and hope we can have some good back and forth here, as well as hearing what the team thinks.

Firth things first: the author is Valon89x on mStable forum but the concept of dual staking system as a proof of commitment is by Darwinia KTON.

Here is comes:

The MTA token is suffering from A lack of incentive beyond simply staking the token and receiving MTA as a reward, while also holding voting power.

In my opinion this is only the first step of what should have been a multi tier staking system.

I propose that we fundamentally change the staking system for MTA to help solve the inflation issue and as well keep incentive for users to strive for Governance.

My idea is to have users stake X amount of MTA as a proof of commitment. After a certain amount of time, the user would be rewarded the commitment token or perhaps maybe even a commitment NFT that would actually be tied to voting rights while also needing to be supported by holding MTA.

That token would then need to be staked again to actually take part in votes and governance. This would also seriously reduce the circulation of MTA and offer a secondary rewards system. One that requires real commitment to achieve, Making it far more valuable.

The reason this needs to be done, in my opinion, is because there must be more value tied to the MTA token in a tiered way otherwise, the fully diluted circulation is always going to be an economic factor for the MTA market. As well we may constantly be trying to find ways to shift around rewards from other already established reward pools.

What do you think about this?

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