Autcompounding of staking rewards

Hub Proposals Proposal Ideas
22

Unpopular opinion:

Auto compounding rewards will lead to an increase in people who dont give a $$$$ about the chain governance, etc. As they dont need to even open their computer now to restake

23

Automatic compounding can be an option, not mandatory and i believe itā€™s a great convenience. If people get lazy then itā€™s important to teach how to choose a validator.

24

Good point. Having the need to log in might have a side-effect to check governanceā€¦

Counter-argument; what is the difference compared to having Yieldmos and Re-Stake where auto-compounding is already enabled?

Not entirely sure if auto-compounding is the elephant in the room, or whether we have another problem to fix with low delagator-participation in governance?

25

Yieldmos and REstake are 3rd party and thus points of vulnerability. My point in raising the question here on the forum is to keep us resilient and competitive.

If automatic compounding of staking rewards can be written into the SDK as an option for stakers, letā€™s do it because competing ecosystems, like Cardano offer it. And Iā€™m in no way saying that Cardano is better.

Iā€™m sorry for the developers of REstake and Yieldmos, but natural evolution should make those services redundant.

For that matter maybe liquid staking could be written into the SDK and reduce the inherent risk of 3rd party apps running liquid staking too. But, thatā€™s a separate conversation.

And again, letā€™s teach people how to choose validators and why itā€™s important to vote instead of withholding a phenomenal convenience for stakers. The option to automatically compound staking rewards will help to encourage staking and thus strengthen the network.

26

Yeah, I was also just wondering what the difference in effect for people only caring about $$$$ instead of he chain was. And having it native or with a 3rd Party provider, that risk stays the same imo

Thatā€™s why I asked if the problem is auto-compounding or something else. I believe auto-compounding is not the issue on the bigger scheme of things, and should in theory thus also be an option to be natively embedded.

1 Like
27

I think that the desire to fix laziness is a great recipe for negativity and arguments from people ==)