Update 1Sep2023: (I vote YES) After seeing the math behind the inflation provided by @dust and lots of conversations about the implications good and bad about increasing the amount of nodes on the network, I have come to my conclusion. I vote YES to this proposal. Thank you SBI VC Trade for the interest on the XDC Network to provide your solutions to the public.
Let me start off by saying that we need more information to be able to vote on such proposal as this one. This proposal cannot be taken lightly and it cannot be approached with self interest of one of several businesses. I understand the importance that these institutions can and will bring to the XDC Network, and the adoption that will come from it. Currently the tokenomics cover the amount of nodes up to 350 nodes. If we were to increase the amount of nodes from 350 to 508 (which is a very specific number if you ask me) this will create an immense flood of rewards, and create more inflation. There are several things to address here:
Tokenomic restructure
Longevity of the network
Deflationary system
Possible current reward rate change
The conversation about more nodes being added to be part of the network is not a new conversation and has been proposed informally many times in different social media channels (internal and external).
Questions that arise from this proposal:
Are they considering the current tokenomics of the network?
How will they help with inflation?
Will this affect the current reward rate of current core and standby nodes?
We can't in good conscious just say "because we need more masternodes to stake we need to increase the amount of current nodes" because this brings several changes that can take a while to iron out and possibly affect the future of the network. We need to study a model with such number of nodes and see how this will affect the current state of the network and the inflation that this will cause.
I dont mean to sound abrasive about this but I have a lot of passion about the network and I want the network to exist for many years to come. We need to really consider this proposal and not just vote without considering all the things that could go wrong if upvoted or executed incorrectly.
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Update 1Sep2023: (I vote YES) After seeing the math behind the inflation provided by @dust and lots of conversations about the implications good and bad about increasing the amount of nodes on the network, I have come to my conclusion. I vote YES to this proposal. Thank you SBI VC Trade for the interest on the XDC Network to provide your solutions to the public.
Let me start off by saying that we need more information to be able to vote on such proposal as this one. This proposal cannot be taken lightly and it cannot be approached with self interest of one of several businesses. I understand the importance that these institutions can and will bring to the XDC Network, and the adoption that will come from it. Currently the tokenomics cover the amount of nodes up to 350 nodes. If we were to increase the amount of nodes from 350 to 508 (which is a very specific number if you ask me) this will create an immense flood of rewards, and create more inflation. There are several things to address here:
Tokenomic restructure
Longevity of the network
Deflationary system
Possible current reward rate change
The conversation about more nodes being added to be part of the network is not a new conversation and has been proposed informally many times in different social media channels (internal and external).
Questions that arise from this proposal:
Are they considering the current tokenomics of the network?
How will they help with inflation?
Will this affect the current reward rate of current core and standby nodes?
We can't in good conscious just say "because we need more masternodes to stake we need to increase the amount of current nodes" because this brings several changes that can take a while to iron out and possibly affect the future of the network. We need to study a model with such number of nodes and see how this will affect the current state of the network and the inflation that this will cause.
I dont mean to sound abrasive about this but I have a lot of passion about the network and I want the network to exist for many years to come. We need to really consider this proposal and not just vote without considering all the things that could go wrong if upvoted or executed incorrectly.