This is Ben Lee from the ICON Foundation. It has been almost 4 months since decentralization and I think we are doing great. However, I believe there are a few things to make the ICON Network better and I want to discuss it with the community to decide together.
We were hoping to have a finalized proposal to share before the first P-Rep meeting, but we found issues with the incentive structure of our planned proposal. We would like to spend more time going through the math before submitting a formal proposal to the community.
However we still would like to share the overall direction we are considering. We can discuss these topics on the call:
Bond Requirement: Many voters are scared of being burned and we think this is an issue. We also think it is an issue that many P-Reps have nothing at stake themselves and voters are taking all the risk of holding ICX. We believe P-Reps should be accountable for their own actions and should also have “skin in the game”. We are still deciding on the size of the bond requirement, but it will be a percentage of total delegation received. This will also lower the advantage of vote buying because P-Reps will need to post a larger bond as they get more votes. If they can’t post the full bond they will not get full rewards. This will also incentivize P-Reps to not sell some of their ICX because they need to have it as a reserve to post bond as they get more votes.
Voter Behavior: We are considering economically incentivizing voters to vote for lower ranked nodes. By doing this, we can incentivize people to vote from sub P-Rep without hurting their free will and could give more chance to Sub P-Rep to become main P-Rep. In addition, this could help people to care more and often with their votes and incentivize self-delegated/exchange P-Reps to stay out of the top 22 to maximize their rewards while also incentivizing general voters to spread around delegation.
Contribution Proposal System: This will no longer be based on delegation. We are also removing the concept of DBP vs EEP and will only have one general category of “Contribution Proposals” that can be used to fund DApps or anything else. The CPS paper is almost done being re-written, but there are still some variables to consider. From a high-level, it will be a budget based system, where individuals submit a request for a budget with a specific proposal, the proposal is reviewed by Main P-Reps, then it is either approved or rejected. It will function almost identically to the current ICON grant program, except Main P-Reps will be the decision makers instead of the ICON Foundation
Contribution Proposal Fund: There will be a fund with a set amount of ICX available on a monthly basis to fund approved Contribution Proposals. The source of these funds is still under consideration (discussed in the next bullet)
Contribution Allocation: We are considering a system that allocates a portion of higher-ranked P-Rep rewards to contribute to the Contribution Proposal Fund. This will ensure that rewards are used directly for contribution and not simply sold on an exchange. We all love the idea of the Contribution Proposal System, however, if it is funded with additional inflation it is not a great solution. By allocating a portion of P-Rep rewards directly to contribution, we can lower inflation while also ensuring funds are used wisely and not selfishly.