Abstract: This article proposed a new EOS economic alignment in which Eden is a supervisor and an eco-development foundation.
About two months ago, I was excited by the New Economic Alignment proposed by Block.one. I was excited because I had sent a similar opinion to Dan’s Reddit blog, Even though I didn’t know whether there’s any relevance.
Recently, there are more and more things about Eden throughout. And I have joined several communities on Wechat. One day, I realized that the New Economic Alignment is significant to Eden. In the New Economic Alignment, I supposed it will have many tokens just staked for earnings, and these tokens will as the supervisor to the BPs. And Eden can appeal to take the abusing BPs out.
When I sent my opinion to a community, Francis Sangkuan, an Eden member, said only give earnings to staked but not vote to BPs sense like Eden buy votes and system pay for it. Then, I suddenly realize it would be great if the new economic alignment let Eden uses the only staked token’s right to supervise the BPs.
Furthermore, I believe it’s great if Eden receives part of the system’s inflation as the eco-development foundation.
The picture upon almost has expressed all my points. Here the significant points:
Divide the staked token into three parts: [staked_no_vote], [staked_delegate_to_eden], and [staked_vote_to_bps]. And three parts can free switch to each other.
Divide the system inflation into three parts in some proportion. one part as the BPs’ reward, one part sending to Eden as the eco-development foundation, and one part sending to the [staked_no_vote] and [staked_delegate_to_eden] token pool as the stake earnings. And the tokens in [staked_no_vote] and [staked_delegate_to_eden] have a same APY.
The tokens in the [staked_vote_to_bps] pool do not gain the system inflation, because the BPs have paid them for their votes, directly or indirectly! It is significant to the new economic alignment. It makes sure Eden has enough power to supervise BPs. Otherwise, the new economic alignment will lose.
Let’s suppose 1% still to reward BPs, 0.5% sending to Eden as the eco-development foundation, and 1% sending to the [staked_no_vote] and [staked_delegate_to_eden] token pool as the stake earnings. Then, Eden’s eco-development foundation will receive about 5,150,000 EOS per year. Because BPs and staked pools receive the same amount of inflation and BPs have to pay some fees, the tokens in [staked_no_vote] and [staked_delegate_to_eden] together would always more than the amount of [staked_vote_to_bps]. And if tokens in [staked_delegate_to_eden] equal to [staked_no_vote], the right of vote Eden receive will always more than each BP receive. So, Eden would always be effective as a supervisor.
The future is unpredictable, we can not guarantee Eden and any other community works well. The [staked_no_vote] staked pool is a selection for those who neither believe Eden nor want to vote for BPs. Reserve this selection makes Eden’s right to vote justice. It’s the token holder’s selection, not just because of the stake earnings!
Eden in the EOS system is a supervisor. Eden is not supposed to determine which ones are the BPs. Eden is supposed to take the abusing BPs out. So, I think Eden can and only can send a negative vote would be great. (A negative vote is relative to the votes to BPs. The votes to BPs are the positive votes.) The votes a BP has equal some token holder vote to them minus the negative vote Eden sent to them.
And Eden community must formulate a clear rule to use the negative vote. Like “If BP …, then …”
Maybe you have minded if the new economic alignment executes, the votes a BP needs would suddenly cut down. “1 EOS 30 votes” may make someone holding huge tokens control all of the top 21 BPs. That’s awful.
So, I propose a change to “1 EOS 1 vote”. Token holders who have huge tokens may still control many BPs, but they must divide their votes. It makes others have mort possibility to become a BP.
I truly agree with the inflationary penalty Block.one proposed.
“Proposal: We are proposing that Block Producers who underperform, or fail to produce blocks at their designated time, will create a penalty effect that decreases the total inflation in the system.”
---- Stake-Based Voting and Rewards: A proposal to Increase economic Alignment between EOS Participants (Block.one)
In this new economic alignment, Eden supervises BPs, and the token holders supervise both Eden and BPs.
In the current EOS system, as we see, BPs have to buy and exchange many votes. BPs cut down their infrastructure to keep themselves profitable. Each party in the system is a prisoner in a prisoner’s dilemma.
In the new economic alignment, under Eden’s supervise and the inflationary penalty, BPs have a motivation to keep themselves performs well.
And the new economic alignment also solved the problem that there’s not a foundation to support the projects developed on the EOS blockchain. Eden receives a part of the system inflation and allocates it in a truly democratic way. It’s significant to the EOS blockchain. I believe it will make the EOS blockchain powerful and prosperous.
In the end, please feel free to discuss this proposal with me.