Our vote on SIMD-228 & SIMD-123
tldr; split abstain/no on 228, yes on 123
as this nail biting vote comes to a close, and since we're probably not going to hear back from any other stakers, we just want to explain our reasoning for both votes
SIMD-228
Pros:
- reduce overpayment for network security
- could make defi more competitive with caveat (h/t
nitter.app/tarunchitra/status/189…)
- somewhat fixes the leaky bucket (h/t
nitter.app/MaxResnick1/status/189…) - (us only, and cexes will still dump REV although less emissions to dump h/t
@kdipep)
- entice etf's
Cons:
- spook institutional/large sol holders who were sold a growth story by changing our minds overnight, feels like yolonomics ( h/t
nitter.app/calilyliu/status/18977…)
- kill some current defi (
nitter.app/solblaze_org/status/18…)
- some small validators may die (
nitter.app/MaxResnick1/status/189…)
- yolonomics with simd's being bandaids (caveat: this is ok as long as downsides are actually considered and we move fast)
Meta:
The forum proposal was anemic, most cons weren't mentioned, some of these pro's which may have been obvious to the proposers (and some that were in the github discussion) surfaced later, the twitter name calling did not help either. however, we did get a more gradual decline in the curve, and a new simd surfaced to reduce vote costs. h/t here to
@maxresnick @kankanivishal and
@tushar_jain
But questions remain: Will it spook current institutional holders? current defi devs? large whales? are we ok with that if the etf's come, will they come anyway if we don't make this change? what good have etf's done for btc/eth anyway, tradfi playing tradfi games? and why the rush, why not take the time and build a proper staking etf? if this hurts small validators and sfdp has to step in, why wasn't that in the original proposal? why not a different curve? static low emissions? something tied to REV, not the one we copied from ethereum tied to staking rate?
Ultimately, no one knows what will happen, this is like pulling a giant economic lever and hoping for the best, which is the reason we're abstaining.
That, and we don't want to make a default choice for our stakers. One of our stakers wants us to vote no, so we will split their vote out.
The good thing is that whatever the outcome, we'll just stay nimble and vote on the next thing to fix whatever this breaks.
SIMD-123
This one's much easier, it removes the need for side deals, brings everything on chain and makes it transparent for stakers to see how validators distribute rewards. While it will lead to smaller validator margins getting squeezed, it will also make them more competitive on APY with larger validators.
So this is a yes.
For god & protocol.
Governance lessons:
Engage with proposals earlier, ask questions, don't be afraid of elitists or vote based on their opinions. probably better to do one proposal at a time, but no need for insanely long fruitless discussions.
I'd be remiss in not mentioning everyone else who engaged and provided context,
@ShinobiSystems @trentdotsol @7LayerMagik @dubbel06
@c2yptic @knox_trades
@maxekaplan @laine_sa_ @SolusRGB @jaskanwar_singh @cfl0ws