slender glen
Hello fam.
I want to start a discussion about the possibility of distributing the weekly ILV rewards as vested stakes for a period.
Here are the considerations:
- People who only want to extract will not dump tokens ASAP.
- It will allow users to experience revdis - which is the greatest value proposition ILV has. Imagine grinding 1 ILV and by the time it's unlocked the price has 10x and you also have another token on top of it.
- This will create a positive feedback loop which will improve pumpnomics immensely.
- This might also create a pseudo burn mechanism in which small parts of ILV will remain unclaimed due to gas fees, which will limit circulating supply.
- Right now if a user wants to stake their revdis, they must claim it and stake it. We’re putting friction when users stake. Instead, we should focus on putting friction when users sell. Right now it’s cheaper to sell the token than to restake it!
In user behavior it's been found that people tend to choose what's set for them as a default. So, staking the tokens from reward by default, will be natural to people and the whole system will grow together. nesslabs.com/default-effect.
- So maybe there can be an option that users can change. This way by default we can have the tokens getting directly vested.
- This will allow many who want to restake to not have to do: claim transaction + stake transaction. Improving their ROI.
- If people want to take some % out to sell, this option can be a slider. So, you can choose to have 70% of your tokens staked and 30% unlocked so that you can sell.
- This way we'll align the incentives of the DAO and the players while giving a choice to gamers.
Extra point: Right now, the plan is to have revdis unlocked:
- What if revdis is also vested?
- What if you get the same ILV vs sILV2 claiming for revdis?
- If we're going to have to support sILV2 for the time being, we can at least try to take advantage of it by burning ILV.