LikeCoin team request for signaling proposal to delegate the ecosystem development pool.
Date & Time
- 2020.02.01 (Mon) 1820–1900 (GMT +8)
1. Progress Update from LikeCoin team
- Phoebe Poon (00′:29″): January was an efficient month for governance. Two proposals were passed: Proposal #7 was about the inflation rate which is adjusted from 2% to a dynamic inflation rate from 7–20%. Proposal #8 was the minimum deposit of proposals decreased from 1,000,000 LikeCoin to 100,000 LikeCoin which can allow the individual stakeholders to raise proposals in the future with a lower entry barrier once the UI is ready.
- Phoebe (01′:45″): Cosmos Stargate release was updated in late January however there will be a postponement on the actual release. Chung is following the news and checking on the latest version of Cosmos SDK node. The expected update for the next LikeCoin chain will follow the Cosmos Stargate upgrade. If there is no further delay, the testnet of the next LikeCoin will be ready in March, featuring the ISCN module.
- Phoebe (04′:14″): Last week there were several attempts detected targeting Liker Land users about their wallet security. Everyone should review their security setup for Liker Land app, Google login, and Social Media logins. Instruction for turning on 2FA in Liker Land is on https://docs.like.co/v/zh/user-guide/liker-id/verifying-email-address. The problems of the users are solved right now.
2. Commission rate concern
- Nicholas (05′:35″): After proposal #7 passed, many Likers delegated their LikeCoin to the validator with the lowest commission rate, resulting in the delegation to a single validator. Nicholas suggested that all validators discuss and maintain a mutual agreement of commission rate e.g. 20% or 30%.
- Chung (08′:48″): Take Cosmos as an example. The initial inflation of Cosmo Hub is 7%, quite a lot of the validators set their commission rate to 0% in order to attract more delegation. Some of the community consider that it could be harmful because a 0% commission rate would not cover the cost of a robust network, architecture cost, and technical cost. Competition of lowest commission rate will lead to the risk of cutting the cost of hardware so that a signal proposal was raised but Cosmos Hub is still a free market indeed. The commission rate cannot be hard-limited by code.
- Kin (11′:13″): Even limits the range of commission in the chain layer, there are many forms of workaround.
3. Raise community pool taxes from 2% to a really high level
- guanyun (13′:40″) Since the inflation rate range passed in the previous proposal, the community pool tax should be raised to a high level which has remained unchanged since LikeCoin moved from ERC-20 to Cosmos. Validators can raise proposals to determine the purpose of the community pool e.g. use those funds for any development on the chain level.
- Chung (18′:05″) Cosmos community pool taxes is 2% of the minted token which means if the inflation rate is 7% and the supply is one billion, then it will be one billion x 7% x 2% which is about 1.4 million.
- Nicholas (Responded on chatbox): He agreed to raise the pool tax, but it’s better to raise the percentage by phases, maybe first try from 2% to 8% in the first phase.
- Phoebe (21’51”) The is also a resided pool for ecosystem development, currently there is yet to design by the community how to use or leverage this resources. The next step is to raise a signalling proposal about the use of ecosystem pool. If the community pool and ecosystem pool serve the same purpose, pool tax on the chain level is not necessary to be adjusted in this early phrase of the LikeCoin chain. Or else raising a signalling proposal to help the community growth or development grant, etc.
- Kin (25′:17′) Ecosystem development pool can kind of serve the purpose of community pool with an exception that it’s finite while the community pool is dynamic and grows with the community. Community pool can be supplementary but have to be aware that the ecosystem pool is finite and have to be spent very carefully. Part of the rewards that are generated by the delegation flow into the community pool so instead of 2% tax it could be 20% or 8% but validators have to come into agreement.
- Chung (27′:02″) The community pool’s token can’t be delegated and it will also be hurt by inflation. Conclusion: 1. Community pool (dynamic) V.S. Ecosystem pool (fixed amount); 2. Community pool cannot be delegated V.S. Ecosystem pool can be delegated by signaling proposal by the community.
4. Raise the validator seats limit from 25 to 100
- guanyuyn (27′:56″) Proposed to raise the validator number limit from 25 to 100, will further discuss in Discord.
- Leafwind (Responded on chatbox): Since the validator increased slowly, and it is decided dynamically, he prefers not to add too much unless there are already many potential validators
5. Seek for consent to delegate the ecosystem development pool
- Edmond (30′:30″) Discussed whether the community can have consent to delegate the LikeCoin in the ecosystem pool. If the fund is not delegated, it will be diluted by the high inflation rate. Delegation can also help to secure the network. The pool now is mainly for the use of rewarding creators and the original amount is 200 million and the current balance is around 138 million now. The community has to decide how to delegate and his preliminary suggestion is to evenly delegate a certain percentage of LikeCoin to all validators.
- Kin (32′:23″) Shared the address book of LikeCoin. The private key of the pools is held by Kin. Technically he can control the usage but not with legitimacy. He is more than welcome to dedicate them to the validators but he needs a clear signal from the community, e.g. delegate the fund evenly to the validators. There can be even a proposal to give a guideline on how to manage them because he doesn’t really want to hold the keys.
- Phoebe (34′:30″) The next proposal priority will be the ecosystem development pool delegation so that the pool can be delegated equally to all validators.
- Kin (35′:06″) Migration pool can also be delegated. The migration pool is for the ERC-20 holders to migrate but have no idea how long it takes for them to migrate so can be delegated first and when they do migrate the amount can be undelegated. There are 120 million and can be used for the time being.
- Phoebe (35′:51″) guanyun will help to raise a signaling proposal.
- Phoebe (36′:31″) Importance arranged in priority
- Signaling proposal to delegate the ecosystem development pool will continue to be discussed in Discord (lead by guanyun)
- Migration pool delegation signaling proposal
- Community pool taxes
- Raise validators seats
Next community call
- LikeCoin community call is scheduled on the first Monday every month
- The next meeting will be held on 2021.02.01 (Mon) at GMT +8, 1820 in meet.google.com/ovn-smic-auu