[Governance Discussion] Proposal #16 Feedback and Action Points

[CosmonautStakes]

Cosmonaut Stakes Voted YES on Proposal #16 for changing the parameters. While I agree with most of the points made by the Core-1 Team in this post, there are some questions and points I want to highlight below.

1. Inflation Halving Question

According to the XPRT Tokenomics and Utility article, the upcoming inflation is on the 1st of April. But, the quote below suggests it’s not. Am I missing something?

@abhitejsingh

The core team is working on the XPRT 2.0 proposition and will share revised tokenomics with the community for feedback before the upcoming inflation halving (tentatively early August).

2. Foundation Nodes Question

Although the Foundation Delegation Program has seen a major redelegation from the Foundation Nodes to validators, according to this article, the Foundation Nodes were expected to be shut down by early Q3 2021. What’s the motive for not sticking with the initial plan?

3. Enforcing a 5% Validator Commission via Code

@abhitejsingh

Proposal 2: Enforce min commission at 5% via code

• Disagree - there needs to be a clear indication that doing so will improve the network overall. It also puts smaller validators at a disadvantage if they want to use a lower commission rate to attract new delegators temporarily.

Enforcing a commission of 5% may help smaller validators, but will also give validators with big voting power even more voting power (e.g. GPool, Staking4all).

While we care about the decentralization of the core-1 chain, the average staker doesn’t. Thus, they often choose between the top validators with the lowest commission. Doing so earns them more XPRT (because of the lower commission), while also feeling secure (because of the high amount of total XPRT staked under the specific validator).

To prove the 5% enforced commission could work, a great example is Stargaze - their Validators Nakamoto Coefficient is at 11.

To prove lower commissions don’t help smaller validators, Cosmonaut Stakes’ commission was at 0% for approximately 1 month. During this time, almost no delegations were made, and stayed in the active set due to my stake.

To prove the point even further, here’s a Twitter poll suggesting most delegators find a commission of 5% the most trustful. Although it only has 23 votes, this could be conducted from a bigger Twitter account so it receives more votes.