With the passing of RIP-000-018, and the likelihood we will round up the inflationary supply to 180,000,000 tokens, Ren 2.0 will now have a total supply of 1,180,000,000 Ren tokens. I would like to open discussions on how to handle the effect of this increased supply on darknodes.
Leaving the current bond size at 100K Ren, maximum total darknodes will increase from 10,000 to 11,800. We have to make a choice to leave this alone, or increase the bond size of a node to 118,000 Ren, thus maintaining the current max 10K node supply. If so, we then need to come up with a plan to compensate some group of nodes so they can continue supporting the network without purchasing 18K additional Ren.
Here are some options I have seen so far:
A) Leave the bond at 100,000 Ren and increase node maximum to 11,800 nodes. This is the simplest approach; no operators receive airdrop. They bear the burden of inflation equally with token holders. With Ren used as a gas token in the 2.0 network, there will be additional demand for it and the likelihood is this demand will reduce the total amount of nodes that can be registered anyway. Also the additional minted tokens will not all be released immediately, those that are may end up being vested for some time, and we even may end up burning some. 10,000 nodes may not have any technical importance, is it just a round number? The main hurdle of this approach is that since current darknodes will be voting on this, they will be voting to dilute not only their future rewards but also their own registered tokens, as an airdrop shields them from all effects of inflation.
B) Increase bond to 118,000 Ren. This leaves max node count at 10K nodes, keeping the basic tokenomics of nodes consistent. With an airdrop to qualified nodes, it rewards them with a shield to inflation, and keeps them from having to acquire more Ren tokens for something they have already achieved. It keeps the darknode as scarce and valuable as before, with nodes earning the same % of rewards according to % of total node capacity. The main problem I see with this is that it will cause some arguing over who receives the airdrop with likely some upset fRens, there will be safeguards needed to make sure the system isn’t gamed if an airdrop is granted for new registrations, and last if there is ever a burn we may have to change the bond again to keep the max supply at 10k nodes. Also like said above, with Ren being used as a gas token, demand for Ren token will increase and though this helps security of system with a high bond value, there will inevitably be less nodes. If we go this route, we need to figure out who will receive the 18K Ren airdrop, and under what conditions:
- Only registered nodes receive the airdrop at a certain snapshot
- Only nodes that were registered in a certain group of epochs receive the airdrop
- Any nodes registered within first X amount of days of launch of 2.0 receive airdrop
- Any of the above, with certain exceptions such as community members who only deregistered since network was closing down, but intended to re-register at beginning of 2.0, etc.
- All airdrops are final, no conditions
- Some or all nodes are locked for X amount of time who receive airdrop
- Airdrop is locked for X amount of time and nodes must stay registered entire time to receive
- Airdrop is only a loan, and any node that received it loses it upon deregistration.
(for 2, 3 & 4 hopefully any technical difficulties requiring a node to deregister and re-register immediately will not cause a loss of the airdrop)
C) Keep bond at 100,000 Ren but code into protocol a max 10K node supply. Just another idea.
Hope I haven’t overthought all this! Let’s get all opinions out there and decide on this ASAP, so everyone can plan accordingly, thank you.