BTC locked on REN protocol is 10x the amount locked in nodes securing the network, but the amount locked in nodes is supposed to be 3x the value of BTC locked, right? The value locked continues to grow faster than fees earned. I understand we have tools such as increasing fees including the continuous fee and encouraging more nodes to join. It is great that the adoption of REN protocol is much faster than expected, but when can we expect to see the value of REN securing nodes grow faster than the value of BTC locked on the network. I don’t like to see the numbers heading quickly in the wrong direction.
Ren secures the network using cryptoeconomic principles. These byzantine fault tolerance set-up systems are resistent to attacks due to the cost of the attack vectors. I believe the team is looking at adding slashing in the next upgrade. Until then attacks are all mitigated by central control. A move to a fully cryptoeconomic dependent system will happen in steps. First all central. Then both. Then potentially fully decentralized, which may still include a greycore yet the seats would be voted on. Feel free to correct me where I’m wrong I’m not an expert
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Hi DaveLevineDotcom,
I too share your concern about the Value of REN vrs the Value of BTC locked up. I tried offering some advice on how to increase the value of REN by introducing a small amount of inflation that would go directly to the darknodes as a means to incentivize new darknode sign ups. Whats nice about REN is that once our locked up supply starts to reach the 70-85% range the Value of REN will naturally go higher. Did you have a chance to read up on my post to " Increase more Darknodes"?
This is pretty on point. Before messing with fees etc. too much, or changing up the crypto-economics, it is important to give renBTC (and other tokens) a chance to penetrate the market. This has gone pretty well, so it probably is the time to start thinking about experimenting.
The Greycore currently secures all funds, so collateralisation is not an issue. The same will be true even once the Greycore is operated by projects/people other than the Ren team. These projects/people have their reputation and the value of their own networks at stake, which dramatically improve the notional value bonded. (For example: Curve is a member of the Greycore, and currently ~75% of renBTC sits in their smart contracts and brings volume/value to their ecosystem. All of this value is captured and could be considered “bond” by having them as members.)
Lastly, it is worth pointing out that Sybil attacks against RenVM are, even at today’s TVL and TVB (total value bonded) more expensive than 51% attacks against Bitcoin or Ethereum themselves.
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Thanks for the replies!
The telegram group and these replies were very helpful.
Dave