Incentivize HNY Holders

🌿 Proposals
#21

Feel free to delete the link I understand if you guys choose to do so but I am adding it as a reference Hex Guide

  • Hex allows for any length of staking and varies the return based on the length of that stake.
  • Late withdraw penalty - The system penalizes a user for leaving their Stake unattended after it has sat for its committed period.
  • Early withdraw penalty - essentially less than half time served results in a penalty which subtracts part of your principal. If withdrawn > than half time served you keep your principal you just loss a portion of your interest. (half-committed-days / days-served * payout)
  • Their “airdrop” was interesting too where they took a snapshot of BTC addresses and you collected based on BTC address the larger the address reduced amount was able to be collected.

Some how we need to figure how the staking will actually result in revenue for us. Penalties can be part of that but if you assume people are locking up potentially hundreds of thounsands if not millions it needs to be working capital. Weather we use it to increase liquidity (which I am not convinced has a desirable roi) or is there another way. Worse case scenario I can take $1M put it in Walmart stock and get a 3% div with very little risk. If they are giving us capital how can we use it.

I think this is just part of the staking picture. How do we incentivize more than just with honey/money. I like the nft idea but like you said mostly just hny community members will be interested. I do think if we advertise “more benefits to come” that might add a little bit more attraction for the NFTs. People like recognition like Luke said about giving people an Role in discord or on your vote if you vote your proposal auto sorts show the proposal you vote for is on top. There could be lots of idea here. How do we attract outsiders. What’s the use case.

I am getting a bit off topic but binance started the idea if you use their coin to trade you get a discount on fees. Instead of .3% you pay .15%

2 Likes
#22

I want to counter this proposal with a different one.

That part of the sourceCred HNY rewards and possibly even part of the HNY income that might be used for a burn to go into wallets controlled by the contract that can be used for delegated voting but vest to the earner for 1 year minimum The problem here is we don’t have the mechanics of this kind of reward.

But as I have posted on Maker (you can see the methodology and reasoning I would like to apply here) I would love to see a similar type of mechanic instituted. @lkngtn is probably the most equipped with 1Hive understanding to think up a solid proposal that achieves the same alignment of interests between workers and HNY holders.

Remember this is just an idea and Maker already has most of the mechanics in place (lacking is delegation and a will to do it).

#23

I am for giving people rewards for real work that the community finds valueable in tokens that vest as a bonus on top of xDAI that they can use to pay their bills. Whether they want to take that xDAI and buy HNY well leave that up to them. I am for the most part against trying to solicit activity with huge APY’s on HNY. I just think we can do far better with our HNY than just tossing it up in the air and hoping money money comes around to take it.

To use an analogy. I want to have a party atmosphere were people come and have fun, but in the end I want them to find something other than some HNY reward that keeps them here. The problems with this kind of stuff is that is basically builds in pretty high inflation components that aren’t sustainable unless you just want to inflate your token price into the ground. imo of course.

One thing I think that seriously needs to be considered in all of these models is a changing price of HNY. This week HNY is down, next week it could be up. Do we really want to plan and budget everything in the price varying HNY or xDAI?

#24

Please don’t tamper with our SourceCred rewards, lolz just kidding. But with the current setup i don’t think there is HNY income that is used for a burn. But as you said do we really have the mechanics but more importantly to what end?

I think you are missing the point. I’m talking about creating use cases for HNY, i mean encourage and give holders more reasons to hold HNY. what i am proposing does not neccessarily have anythng to do with price, it is basically getting more HNY for holding HNY but done in a way that the impact of the influx of the earned HNY will be absorbed into circulation without having a strong effect on the balance of things

#25

I agree that we need some staking incentive for HNY, however I would prefer if there was actually a reason to stake, not just handing out APY from the common pool…
This is one reason why celeste is going to be really cool, jurors have to stake and can earn an income, but they’re providing a real service.

But, yeah, maybe providing some sort of APY for staking in the interim while we think about actual applications would be good. I don’t think the APY could be higher than the issuance rate though.

2 Likes
#26

You summarized what I have been saying!

#27

Yeah but binance can control that, what would you tell LP when they get less fees?