@Simon staking rewards is just one way to monetize. Whoever receives the delegation is also an important factor. I mention it in another idea at the end of this post.
@RooK5677 I wouldnât say the heavy lifting has been done. sICX is not much of a product, it could be a lot better. Refer to stETH (and others) for LIDO. Check out mSOL through Marinade Finance for Solana. These are full blown genuine products with teams around them. sICX has a long way to go to being productized. The reason itâs not is because thereâs no incentive for the team to make it better. Maybe Iâm just a capitalism maxi, but incentives make good products.
I totally understand where youâre coming from, but tbh staked BALN holders arenât going to be the ones working on sICX (or balanced for that matter). Based on our numerous conversations, Iâd assume youâre a large BALN staker. Ask yourself, if you start getting sICX benefits as a BALN staker, are you going to learn to code and start contributing to building a user interface, fixing bugs in the smart contract, upgrading it when slashing is activated on the ICON network, etc.? BALN stakers currently get a benefit from sICX through the sICX/ICX pool.
Thereâs a difference between investors/stakers and people who have the skillset and incentive to work on the project. Somewhat of a learning experience for me over the last year or so.
@Andell is it good for the ecosystem that sICX currently delegates to registered nodes that donât even secure the network? Right now, it goes to top 100 nodes as a default. The purpose of rewarding staking is using network inflation to pay for the security of the network. sICX is earning rewards for not even securing the network.
There will be fixes that need to be done and adaptations for future changes to the network, Iâm sure. Who would take care of this and why? I think not having it monetized, with nobody caring much about it, is much worse for the ecosystem.
Itâs not about whether or not it adds some value to Balanced. I agree it does, just like Balanced adds value to GangstaBet because itâs the only place to trade GBET, but GangstaBet doesnât contribute to building Balanced. The key thing is, who will contribute to this and why. Many people benefit from it, but somebody (or group) needs to directly benefit from making it better and growing its adoption, otherwise it will be tragedy of the commons and stagnate.
Through all of this discussion Iâve become more convinced that somebody needs a direct incentive to make sICX better, whether itâs the current Balanced DAO builders or some other group. I can think of 2 ways to do this, though open to other suggestions:
1.) Use some portion of the delegation to delegate to the nodes of the workers contributing to sICX (can be many nodes)
2.) Use some portion of staking rewards to compensate those that work on sICX
I originally had the idea of using CPS money, but this is not incentivize anybody to grow sICX, make it better, etc. It incentivizes the bare minimum. There would be no reason to care about how many users sICX has, how good the UX is, etc. with CPS grants. So itâs still an option, but my least favorite option.