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

by Olivier4 months ago • ... views

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?

PopularIn order

jawad-elidrissi-8989• 3 months ago

It was surprising to come across this after some time away from the community.

I wasn't aware that the idea had taken root like this, I'll be honest I didn't think it was very popular because it required a substantial amount of work.

But I felt that the Mstable platform and the community coupled with the Dev team would have been able to pull this off.

Prove of commitment is the only way forward in my opinion, is one of the only ways almost every single one of these utility/governance tokens are ever gonna hold long term value.

As I stated, you can't just give away votes.

Something given has no value, only things earned through struggle have any real value.

Its just that I detest the model of farmig gov tokens for more gov tokens its also a philosophical argument.

You cheapen the vote.

And META tokens, like all gov tokens are votes. You shouldn't just be able to stake META for more META. I don't care if it give you oting rights and or you get fees from save blah blah blah thats all bullshit. You are just prolonging the inevitable AND as well the META token has a token limit! Wtf are you guys gunna do when its all farmed? And I know this some time off still BUT - call me crazy for being forward thinking...

The whole purpose of Proof of Commitment is to take Socrates Arguments against Democracy and put them to work here.

Anyone would have to chance to prove their commitment to the META platform via the staking scheme/NFT reward system. The amount of META in circulation would be slashed and because the META platform is such as success, this could create a positive feedback of new users looking to get their NFT for a chance at the new layer of value.

As I stated as well, the idea was for a secondary staking tier. An executive tier.

You have to stake X amount of META for a certain time, then you get the NFT.

After that you must stake the NFT and the META again! This locks in governance rights, like a parachain auction in polkadot.

The holder gets all the right and earns all those fees you guys are just giving away to META holders for simply printing more META.

Plus you can just auction the NFT on the open market. This would open up vast levels of potential value for the Mstable platform.

Though I understand some of the other beneficial aspects of the META token are starting to come out, it will still suffe from the same issues as I laid out in my original thesis. Really you are just prolonging the inevitable, where as my proposal offers tremendous real long term value to the META token holders as well as, in my mind, a much better incentive for governance.

Crypto Poppie• 4 months ago

Super interestIng share. i am truly amazed that some projects out there like mStable and Akropolis are taking serious the whole community-driven discussion thing👏🏼

For me I feel quite a beginner and would really just like to know how to start staking...😅

can anyone point me to an easy-going beginner guide to get into MTA’ staking?

Thanks in advance🙏🏼

Andyx/acryptos • 4 months ago

The idea makes a lot of sense. Generally speaking, adoption needs incentives to happen so an additional token that rewards commitment and can be staked as well (this is what I saw KTON does) could potentially become very popular amongst the community.

I'm thinking though: how much added work would that bring to the team? Sometimes I think it's crazy how bootstrapped the whole thing operationally in certain projects! Like stuff is managed with excel sheet and good docs - insane...

theETHdev• 4 months ago

Sooner or later, every Yield Farming project who was distributing governance tokens will suffer from similar issues.☝️Adding governance incentive and staking with 5% APY is not enough nowadays to hold the users in the project.

How do we recognize the value of the token? Hard question because the value is fake in a sense.

About MTA proposal:

Time lock - should have been done from the beginning
The second token or NFT will be sold on secondary markets anyway. Just like COMP

Manny Reimi • 4 months ago

I think a lot of users confuse capital cryptoassets, like MTA, with currency like commodity-money BTC and utility-money ETH. Inflation is a monetary concept. The relevant concept for capital is issuance. Maybe Proof-of-Commitment is a wonderful technical solution, but it is focusing on the wrong issue.

Issuance can be used to reward active over passive investment. Staking a governance token is terribly unproductive, you have to let the pure holders dilute to encourage farming.

Just a Girl into Crypto• 4 months ago

Hey Derek, was this eventually approved?