Two weeks into decentralization, one major problem we’re facing is the concentration of votes. This leads to all sorts of problems from skewed reward distribution, excessive inflation, to the rich get richer phenomenon etc. Besides educating the public on the importance of even vote distribution, as P-Rep teams we can also help mitigate this problem by collaborating on a few efforts. Let me elaborate,
Lowering i_rep. This is the first decision we made, but we can’t make much impact individually. We have lowered i_rep to 40,000 for the time being (note that each P-Rep can adjust ±20% of their i_rep from the previous term). The rationale behind lowering i_rep is twofold: first, it has a much greater impact to the higher ranked teams, sort of like taxing heavier on the rich; and secondly it can control to a certain extent w excessive inflation rate, before inflation is necessary. We want good inflation that increases growth and ultimately drives our ecosystem to a fuller capacity. Ie. the additional issuance should be properly spent for things like building dapps, marketing initiatives, node infrastructure etc. We don’t want bad inflation that devalues the dollar for poor purposes such as rewarding voters or re-staking to your own nodes. I guess the mentality is that, we’d much rather see teams with full intentions to build and request for funding (or increasing i_rep), than having teams with excessive ICX lying around looking for good ways to spend.
Reallocation of I-Score. ICX_Station’s original plan was to spend 10% of its earning on staking, this however was a projection based on a more evenly distributed vote. Our delegation rate today is 9% of total supply, the reward rate is excessive for us at this point. We plan to reallocate more of our earned I-Scores to lower ranked but deserving teams. This also requires a collaborative effort to make a greater impact, us alone can hardly cover all the good teams out there.
Grants Program. We also proposed the grants section on this forum to fund teams (not necessarily just P-Rep teams) directly through a grants program. For details of the application process visit this category: About the Grants category
We hope with the grants program in place, teams will be able to help the projects directly before DBPs and EEPs kick off operations. Many teams have also expressed interest in funding other teams through grants program, we’re hoping to see some collaboration here as well.
We also have a few other plans in the pipeline currently in discussion, including acceleration and incubation, which will also help us fund other teams directly with our rewards.
Love to hear your thoughts on other improvement ideas.