This is a proposal suggesting improvements in the token economics of XPRT.
XPRT inflation has been significantly high for the first two years of the chain being live. It has also played a big part in securing the network with over 80% of all XPRT supply being staked. However, with dapps being deployed on the chain and the network becoming a hub for Liquid Staking activity, it is time for the token economics to be updated to better support the direction and progress of the chain.
The proposal suggests 5 phases related to the token economics.
Reduce inflation rapidly
MEV capture and distribution
Use XPRT to propel ecosystem growth
Explore lockup strategies
Interchain Security / Mesh Security
This proposal is the result of a collaborative discussion between some active community members and persistence team members. It came out of a dedicated working group which was created after certain community members had requested to rework the token economics.
While the google doc can serve as a working document, this forum is intended to gather overall feedback on the totality of the proposal, and gives everyone an opportunity to join the discussion, especially if you missed the working group.
Goal & action Items
The proposal in its current form contains 5 stages. The goal is to arrive to a concrete direction for each of the phases, to then allow for each phase’s specific implementation to be discussed separately on the forum as well to check the support levels within the community before putting it out on-chain as a governance proposal.
Read the proposal linked above and use comments to ask questions where things are unclear, or make concrete suggestions about specific topics.
Leave a reply on this forum with your overall feedback or summary of your suggestions
I fully support the initiative to adapt the tokenomics to better serve the project’s growth and direction. The proposed 5-phase plan seems well thought out and covers essential areas to strengthen the Persistence ecosystem.
I appreciate the collaborative effort from community members and the Persistence team in addressing concerns and finding solutions. Looking forward to participating in further discussions and seeing these improvements implemented.
Reducing inflation rapidly is a good step towards achieving a more balanced token economy. By doing so, it would be easier to control the supply of XPRT, which could help maintain its value and promote a healthier ecosystem. I also find the suggestion of capturing and distributing MEV interesting, as it could incentivize more participation and engagement in the network, as well as provide a fair distribution of rewards for the stakeholders.
Using XPRT to propel ecosystem growth is also a great idea. By utilizing XPRT for various activities within the ecosystem, it would help to create more demand for the token and further enhance its value.
Lockup strategies and interchain security are also important to consider, as they could help to promote long-term holding of XPRT, which would ultimately lead to a more stable token economy.
Overall, these proposed improvements seem like a step in the right direction towards creating a more sustainable and robust token economy for both the Persistence and Cosmos ecosystems alike.
I may not understand all of the other dynamics, but the reduction in inflation ahead of schedule doesn’t sound like a good idea to me. It appears this would penalize those long-term Persistence stakers by receiving less stake-generated XPRT than if we let it run its natural course based on the initial parameter settings we knew about when we first decided to stake. So, I don’t see a benefit for anyone staking to vote for this. Now, if the proposal additionally said there would be some incentive for existing stakers that have shown long-term loyalty to the project via an airdrop from an existing XPRT pool, a guaranteed burn mechanism or some other way then it may make sense. I don’t see any loyalty being rewarded here, just reduced rewards. It would make more sense to me to adjust this in August, not now. Please correct me if I have this wrong.