[Proposal] BSN Emissions for Stakehouse

Proposal Discussion
1

[Proposal] BSN Emissions for Stakehouse

Update March 23, 2023 this proposal has passed. See the snapshot below.
https://snapshot.org/#/blockswapdao.eth/proposal/0xcd4c50d0b3783a8dc28a5363ae1173373c2cb237a5cf9d71b0b68cc2b83eec6e

Introduction

On March 10, 2023, a Temperature Check was conducted for the Blockswap DAO community to feedback on emissions for Stakehouse. The community was able to voice their thoughts about the potential for BSN distribution.

This proposal will outline feedback and updates to the Temperature Check to outline an effective proposal for BSN Emission for Stakehouse.

Summary

For a summary please visit the Temperature Check outlined here.

Community Feedback

In general, the feedback was positive and in favor of BSN emissions for Stakehouse LSD Networks. Feedback was collected from both the proposal on the governance forum and Discord. The overall thought was that it aligned with DAO bootstrapping and finding quality members who are value aligned with Blockswap Protocols. The feedback from the community can largely be categorized into two buckets.

Increase Adoption

Community members voiced their excitement in anticipation of rewards for staking validators. The thought was that this was an adequate route to bootstrap liquidity for Stakehouse LSD Networks stakers. By heavily front-weighting rewards it could get a high amount of dETH into the marketplace to find deeper integrations into the wider DeFi market.

The main focus here was on finding meaningful growth and DAO members.

Emissions Rate

There were some who thought that BSN emissions might be too high for the first few validators.

The outlined emissions Temperature Check has a target of 1,000 validators with front-weighted rewards for the first validators. If the target is not met, there may not be sufficient liquidity to find deep integration in DeFi. Therefore, it is important to consider the last group of validators when determining the rewards distribution rate as that is where further protocol and asset adoption are possible. This last group which contains 40% of the total validators has an average rate of 12,500 BSN per validator.

Additionally, there is nothing preventing anyone from participating in Stakehouse Emissions and having the same opportunities available. Any perceived misalignment could have come from not having an intention of using Stakehouse. If that is the case, then they are likely not as aligned with the Blockswap DAO as those willing to use the DAO protocols. Stakehouse is permissionless.

Implementation

With no reasonable reason to not move forward with BSN Emissions for Stakehouse; The DAO will begin implementation.

Due to the small number of BSN tokens currently distributed, it will make it hard to have a meaningful vote. The DAO will empower the core contributors Blockswap Labs to facilitate all aspects of the execution of the BSN Emissions for Stakehouse. A few key points to note about the proposal.

  • 100,000,000 BSN of the 2,650,000,000 held by the DAO will be allocated for the initial Stakehouse Emissions.
  • The emissions will be tiered and only distributed when each tier is complete.
  • If passed this will start Monday, March 20, 2023 and conclude in 120 days returning all remaining tokens to the DAO. Validators staked before March 20, 2023 will qualify retroactively.
  • Node Operators will have a delay in receiving emissions to determine the quality of node operating based on staking rewards generated.
  • Blockswap Labs will be entrusted with all execution, implementation, communication, design, and everything else that goes with the campaign. This will be done to the best of their ability and contingent on what is technically and logically possible.
  • Rewards will be retroactive to all stakers in LSD networks since the protocol went live on March 3, 2023.
  • Additional details can be found in the Temperature Check here.

As a quick reminder, below are the tentative emissions. Please note that this will likely be on a curve with earlier stakers receiving more than later stakers. For Node Operators the BSN mining is related to the staking rewards earned. This ensures uptime for Node Operators. The below is for informational purposes only and used as a visual reference.

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Next Steps

This proposal will be available for three days. If there is no logical pushback from the community, Blockswap Labs will execute it to the best of their ability. There will not be a vote unless the majority of the community is asking for one. This is because there is not much BSN in circulation and a significant amount of BSN is still vesting. Once there is significant token distribution and decentralization voting will be enabled for future proposals.

Conclusion

The next steps will be executed by Blockswap Labs. Snapshots will be taken and a UI shared for users to claim BSN. If you have any questions or comments please feel free to share them.

5 Likes
3

That sounds like a good plan tbh. I’ll be voting with a resounding yes

2 Likes
4

hard disagree tbh. sad to see this

5

As an Early-Staker-Wannabee I would suggest flattening the curve a little bit for the early stakers.

Right now I have my validator all set up and ready to go, with my 4-eth deposit made, and all I can do is sit around waiting for a staker to deposit 24+ ETH into the Giant Protected Staking Pool so I can claim it and start validating.

At the moment there are six other validator-wannabees in the pool, waiting for ETH to become available for them to stake. We are all at the mercy of the depositors, and are in a race to see who might be able to claim it first. For comparison, there are currently only three fully-funded staked validators.

When I made my deposit, there was only one funded validator in the pool, and I think only two or three waiting for ETH. Since then two more have been funded, but in both cases someone deposited 13-17 ETH into the pool to top it off, then immediately grabbed all the ETH, presumably for their own validator.

So my concern is that people who are ready to start validating will miss the top-10 cutoff because they don’t have the ETH to fund their own validator, when that’s really the whole reason for running a node with 4 ETH.

So my suggestion would be to stretch out the initial phase, and/or to take into account when the validators and stakers come into equilibrium.

Please consider that as you finalize and implement the emissions plan.

6

Has there been any update / decision on this proposal?

7

If you look at the top there is now a snapshot which voted in favor