Seems like good changes for the economics for the most part.
I'm still convinced that staking rewards are counterproductive.
Paying users to remove liquidity from the market and lock it up... well I'd argue it has negative value. For Hive it makes sense due to the power of DPOS voting and account recovery and such. For other projects it just makes the token more illiquid.
If it were up to me I'd seriously consider rolling all of the staking yield into the LP to get the maximum liquidity possible. There are many actions that can be taken such as this that indirectly make up for the loss of yield for stakers. For example if the game has a huge amount of liquidity it's easier for number to go up and bigger accounts to enter a position in size. The LP is also the only thing propping up the yield on delegations and allowing HP farmers to actually cash out what they've farmed.
I don't expect any of these ideas to actually be implemented and I won't poo poo an obvious victory in my favor. I just wanted to point out certain problems in the model... such as earning 15% for staking is a drop in the bucket compared to another 100M Zing being printed over the next year. The staking reward is just a tiny kickback with insignificant affect compared to anything that can be done to increase token price directly. And I say this as someone who has 5M Zing staked. I would prefer all that yield go away and into the LP or anything else that can make number go up.
I don't really understand this point, even without an LP in place at all there'd still be the feeless books that people could use who'd wanna buy zing that's cheaper than what you can get from delegating HP if price and apr were to drop under. So it's not really the only thing holding it up and I know you buy zing and place buy walls as well.
Basically it's people who want zing but don't have the HP to delegate/want to use HP for something else vs those delegating for the APR only and instantly trading the zing off for a small hive profit margin.
The thing that I fail to understand why it doesn't get mentioned in these discussions is that LP'ers get liquid zing daily, isn't that also something the providers can instantly sell for a hive profit or to increase their position by selling half and outgrowing people staking/delegating in a major way? Like over 4x according to the APR's right now. Sure there's risks involved there when price moves but that same risk can be applied to staked zing as well for not having liquid zing when the price does move up by 2x like it did recently for instance.
I think staking rewards serve their purpose to reward those who delegated/supported us early and stayed staked over the years, there may be people who only delegated for a short time and then stayed staked so they're getting more zing for staying staked but of course lose out to those that also stayed delegated compared to those that supported early then instantly unstaked and sold off.
Best course of action is of course to diversify how you invest in zing, if you've got all eggs in the LP it depends what your intentions are, if you want value rather than more zing, you'll most likely get it once price moves up and you can also easily exit it if you think hive will move up.
But yeah, I wouldn't be against lowering staking rewards further but not 0 and increase LP a bit more, both of these serve no purpose to funding the team, which is different from LP's on other chains. Unfortunately we never got far with that and may have to rely on vsc here in the near future to help bridge zing to other chains where we then could offer different LP's with different pairs.
Commented before I read this. lol.
Similar outlook.
The only thing we disagree is that the game wouldnt have a way to sustain development if right now all rewards go into LP. Eventually they should but as you can see the first sale only got about 20k USD into the development of the game. So he either does a sale every few quarters or so or the delegation and other rewards stay.
The HP delegation rewards arent really rewards due to high inflation. Theyre giving up a part of your HP APR to help fund the game. Its not really profitable at all. The logic as I see it is that its preferable to give up your HP APR over the course of the year than spend money right away.
Oh yeah I must have not been clear:
What I meant to say was that all staking rewards (40k >> 30k Zing daily)
should be abolished and rolled into the LP (20k >> 30k Zing).
This would double the LP yield even after the current changes.
The delegation funding mechanism is clearly necessary for startup funding even though this is not ideal.
Thanks for allowing me to clarify.
Yeah. I might have misunderstood.
When looking at your comment it's easy to see what happened.
We seem to be saying very similar things.
yes, more rewards to the LP :)