Poll: Increase validator staking rewards to gain more attention, increase market share and decentralization

General Gnosis Chain
1

The actual inflation of GNO is very low and the current reward rate of ~15% seems not be enough to bring a couple of 100k validators onto the Gnosis Beacon Chain. The current state could harm further adoption and decentralization. GnosisDAO has to be more aggressive when the DAO wants to gain more market share within this highly competitive environment.

From a general point of few, an inflation target of ~2 % could be healthy way to increase the amount of validators and gain market share on the long run. If GnosisDAO wants to act more aggressive, the short term inflation rate should be well above the 2 %. Such an aggressive approach would be 3.67-5.5 % yearly inflation for the next 6-8 month before the 2% inflation is implemented.

  • Keep current GNO inflation at 0.6 % (validator reward: ~15 %)
  • Increase GNO inflation to 1.8 % (validator reward: ~50 %) permanently.
  • Increase GNO inflation to 3.67 % (validator reward: ~100 %) for the next 8 month.
  • Increase GNO inflation to 5.5 % (validator reward: ~150 %) for the next 6 month.

0 voters

^^ All validator rewards (APYs) are calculated with the current validator amount of ~110k. The decrease of rewards relative to an increasing amount of validators should not be touched.

2 Likes
2

Although I agree with the intention of this, I don’t feel comfortable with increasing the validator rewards in general. Cause we are still quite centralized this will give even more GNO to some large holders.

Giving incentives to ppl starting a new validator node seems much more useful to me.

And equally important: incentives to bring projects/users, and thereby tx volume, to gc to make validation more profitable due to tx fee generation in the future.

7 Likes
3

Agree: it’s better to focus energy on promoting GC to builders, project teams, etc to increase the number of transactions per block proposed and demand for block space. For instance, it is not uncommon to see empty blocks (e.g. those with no transactions) usually over the weekends & major holidays. Validators get no income for those. But when validators propose blocks with many transactions, the income is pretty decent: the more the better! So that should be the focus.

1 Like