Before I get into my idea I want to congratulate the team on making it this far! I think Ren has the potential to be come one of the most amazing projects in the crypto space!
Some background about myself. I have been in the crypto space since Jan of 2018 so I don’t have as much experience as many others in this industry. I’m also no expert in in writing up these suggestions but I will do my best anyway. I also recognize that I may have limited knowledge about this project in comparison to others, but I ask that everyone read this with a open mind. I have been successful in finding early gems ( like Ren! ) and like to patriciate in community discussions.
The idea I have is quite simple and has been used by other projects to help bootstrap platforms in their early stages. The idea is to incentivize more darknodes to sign up by offering a staking reward by creating a small amount of inflation. ( Disclaimer – I AM NOT TRYING TO PUMP MY BAGS! )
Our circulation supply is 1 billion. We can increase that by 10 - 100 million and slowly release those newly printed coins to Darknode holders that continue to stake early on in the game. These newly printed coins can have a vested period of 1 year lock up time.
Let’s look at Synthetix ( SNX ) as a good example. They were the ones that essentially pioneered this yield farming craze by offering new and early users SNX rewards for securing the network. Right now they have approximately 75-85% of all SNX in supply locked up. Just imagine if we were successful in getting 75% of our circulating supply locked up by that amount. Just image the network security and price appreciation!
In order for REN to work in the long hall we need to have our circulating supply locked up so that our “Value to locked up funds” makes sense. Offering Darknodes a new incentive to secure the network will definitely help to bring new sign ups. As it stands the project is asking a lot from Darknodes. They have to lock up their funds for close to 80 days, which may result in lost opportunity elsewhere. The fees right now are relatively small and the potential for superior gains else where, whether yield farming or just trading poses all sort of opportunity costs.
The Defi game is constantly changing. I’m sure under normal circumstances the team would have never considered inflation as a means to help bootstrap the project, but I think it’s time to come up with more creative ways to get more Darknodes signed up asap!
Lastly, I think it’s a mistake to just think that everything will “ be okay” as is. The Crypto space is so fast moving that those that stay stagnate end up losing the most. There is nothing wrong with making small adjustments to help the project succeed. That’s why were all here!
Let me know your thoughts and if you agree or disagree.