In-depth discussions

#583 (Discord): 0x is a governance token because they do not collect any fees!

#584 (Discord): Blocknet generates a profit

#585 (Discord): Whether the profit is paid in block or bitconnect token

#586 (Discord): They will always be equivalent in USD value at the time they are paid

#587 (Discord): This whole but pressure is an illusion

#588 (Discord): I cannot emphasize enough that Block is not a governance token because it collect fees unlike 0x or other governance tokens


Jazzy (Discord): So in that case the value prop is the fee collection in native currencies (of the same value as would be applied to BLOCK), making node ownership the incentive. I can see the reasoning, but it changes the value prop between stakers and nodes to significantly more benefit the nodes (sharing fees is stakers is hard anyway, with native currencies may be impossible) and kills that incentive for staking.

#590 (Discord): Correct

#591 (Discord): I definitely does not kill the incentive for staking though


Jazzy (Discord): It kills the 30% fee share incentive

#593 (Discord): If you are losing 9% per year (or whatever) that’s a big incentive to stake

#594 (Discord): That 30% is not a profit at equilibrium though

#595 (Discord): Staking is a profit vs non-stakers though


Jazzy (Discord): Staking is not profit


Jazzy (Discord): Staking is not getting inflated

#598 (Discord): I believe they will have to lower the nodes requirements anyway

#599 (Discord): Which will be a loss to all nodes


Jazzy (Discord): That could be a reasonable compromise

#601 (Discord): Yes even though I have node now, I think it needs to lowered at some point,

#602 (Discord): And to be clear this discussion re 30% to stakers is a result of the new single tier block reward structure to be implemented, rather than whether fees are paid in block or native