Auto-Restaking Feature in ICONex

General Discussion
#1

Discussed at ICON P-Rep Weekly Meeting #1

Teams had different opinions on auto-restaking.

Some ideas that were presented in the meeting…

  • Auto-restaking is good for user experience, as the process of being active and claiming I-Score can be viewed as clumsy.
  • Auto-restaking is philosophically against the point of the ICON network which encourages activity and contribution. It would also make it difficult for newer teams if ICONists can just vote once and compound automatically without manual intervention.
  • Auto-restaking requires a user’s private key and would be a security risk. Also, it would likely be impossible on Ledger directly.
  • Maybe this kind of auto reward structure should be something reserved for second layer solutions like Coinbase, Binance, etc.
  • ICONation brought up that each ICX claim is a taxable event. Auto-restaking could be dangerous unless there was a solution to manage taxes.
2 Likes
#2

That is true for external scripts such as https://github.com/eublockmove/ICX-AutoStaker
If this feature was added on protocol level / SCORE, there would be no requirement to use a private key.

Taxes are specific country to country - there’s no universal key how to optimally handle them. Processing data for taxes shouldn’t be a huge issue once this tool is out https://twitter.com/eublockmove/status/1227685242301034507
The risk I see there is that due to the volatility, you could end up paying more in taxes than you actually received in staking rewards. The safest solution is probably keep selling a portion of the rewards to cover for taxes.

#3

From the latest roadmap update:
image

That should enable auto restaking through a SCORE, but users would have to first unstake and then move coins into the SCORE.

1 Like
#4

Re-staking & voting definitely is a very good feature that can be added into ICONex wallet as an optional chose if it is possible to be implemented in the way that will require minimum access to the password.
For example, the customer gives their permission from the beginning to stake&vote and if the re-staking&voting feature has been chosen then the requirement for a password to be asked when any further changes of the status are made.