I think the bonded mechanism is a fundamental problem
When the bonded target is higher than 67%, the reward is reduced, and when it is lower than 67%, the reward is increased. The intention is good, but if you observe it for a long time, it has no effect, and it is more like a drag.
When it was below 67%, the long-term high interest rate of 20% in the past became negative marketing for ATOM. Most people came just for the airdrop and invested 50-100 US dollars.
If this bonded rate is effective, when it drops to 66%, and the annualized interest rate in the past was 20% higher, it should slowly rise above 67%, but the result did not happen.
Those who pledged have received a high interest rate of 20% for a long time. At the same time, the ATOM price rebound in 2024 is far from keeping up with many chains. ATOM is obviously a great project, so why would it lose to others at the same starting point!
If the bonded rate is higher than 67%, how can we ensure that it will be driven down from the high place? I believe that after looking at it for so long, there is only one answer. Unless there is a major change, it will stay high at a high place forever, and stay at a low place for a long time at a low place.
People who are loyal will be loyal, and the mechanism cannot control people who manipulate short-term operations.
This seesaw mechanism does not apply to staking
So why doesn’t ATOM just use 7% and cancel the 67% target bonded tax?
Most public opinion hopes that the ATOM interest rate will be lowered to a reasonable range, otherwise there will be no voices in the market for lowering the interest rate.
And I think this 7% - 10% is a curse! Unless there is any exciting market, it will maintain 10% for a long time
If the 67% mechanism can be changed, I hope someone can advocate it.