So I generally agree with phased approach and most of the proposed elements.
Adjusting inflation rates is popular and important but it should be done on a schedule instead of all at once because yes, the patient is critical but “First, do no harm” still applies. Case in point: As discussed in the other tokenomics “kick-off” thread that there are a significant number of stakers that are delta-neutral on ATOM price and selling the staking rewards as ‘free-money’ and there is risk of a big sell-off if those people are disenfranchised by a major and abrupt change in staking rewards. They need to be phased out obviously but not in a way that crashes the ATOM price violently.
Similar reasoning applies to a vesting schedule of staking rewards. Overly aggressive adjustments could make more people leave than necessary.
ICF selling of BTC/ETH into ATOM is definitely the low-hanging fruit and should be started immediately at a set rate.
Agree with all this. Mechanical buy back seems key to capturing value to ATOM. That could be burned or partially burned with some amount (probably relatively small for now) going to an ecosystem development fund.
Also sounds good. Seems like there should ultimately be metrics made available in real time.
My previous response addresses why I think we have no choice but to let this be an ecosystem thing. We are simply not in a position to offer a competitive yield opportunity.
To me that’s not an issue though because sell pressure from stakers is a current issue but the most fundamental problem is the lack of value capture to ATOM. Once a viable path to solving that problem is implemented, ATOM becomes a buying opportunity. So sell pressure is mitigated by smooth inflation adjustments plus doing what should have been done yesterday and capturing value to ATOM. There is not time to waste but neither does all this need to be done overnight to reverse the sell pressure it just needs to be clear to people that Cosmos is handling its s$%t.
Gotta eat lunch. I’ll continue this response later. Good, important debate going on here.