Tyler64 concerns on ICX value proposition

Hi all, it is Tyler64 here again. Today I am going to talk about a real issue that I wished to communicate on behalf of 80% of the Iconists. This issue needs to be addressed hard as it concerns the value proposition of ICON public blockchain and ICX.

Let’s start with the facts. After 3-4 years, ICON blockchain is nothing but a gambling den. By looking at the transaction volume in USD throughout the entire history, >95% of transactions come from ICONBet. Without ICONBet, ICON public blockchain is a dead chain. That is how much concentration risk we have.

ICONLOOP on the other hand is making big strides in business developments. Enterprise news one after another. But here is my question to you. You can have broof, zeeung, myID, hospital identity, shinhan banks. Big names. If they contribute nothing to ICON network. It is as good as irrelevant. What is the use of all these developments if they can’t contribute even at least 5% to ICON public network? What is the use of ICX?

I understand that government/enterprise use cases would probably be more restrictive. Fine, a portion of it they would come to ICON public chain using ICX as a native token. But if they contribute such an immaterial effect on the network. It is as good as useless from a tokenomics demand perspective.

ICONLOOP got to speak up. Address it. Voice out future plans on ICON blockchain. Currently they contributed nothing from a transaction volume standpoint. I can tell you frankly all p-reps and iconists are bullish about ICON for 1 thing: myID Alliance.

We don’t invest in ICX for p-reps. P-reps should be the secondary contribution and ICONLOOP the primary driver. But it seems the reversed now. What is the point if they can’t even generate enough volume and tx to even match 1% of a gambling dapp.

I would be happy if ICONLOOP and MyID contributes at least 5-10% by next year and progressively moves up from there.

2nd issue.

We lack talented p-reps. What are most p-reps doing? We have enough of p-reps doing “translations”, “staking guides”, “tutorials ledger”, “newsletter”, “videos” < things that anyone else could have done. What we truly needs are BUILDERS. Developers that build some real solid dapps that beats ICONBet and is NOT another gaming/betting. We need real solid talents and developers building ground-breaking popular dapps like ICONBet.

Hyperconnect’s hackathon was a waste. I thought it would attract real solid dapps and talents but end up its… mehh. Look at Champion that horse. There are indeed many dapps, but based on what i observed it is more like a “high-school” project v amateruish outputs. none of them showed any potential in the hackathon

Now my hope is on that p-rep that hosts educational fairs for developers in Vietnam. I believe in vietnamese developer talents hopefully something comes up from there.

Ask yourself out of all the p-reps we have. How many of them built something that contributes to the blockchain network, that utilises ICX token, that induces a demand for ICX? How many can you think of? If you are like me, only 1. ICONBet.

We have so much resources that probably have gone to waste, to the dump. We need to focus and realign the distribution of resources to real talents. It needs to be a laser-liked targetted approach. Not sprawling bullets anywhere and everywhere and a decentralised way. That’s why I mentioned in my first post, you need centralised authority in the beginning to maintain quality control, then slowly decentralise it after standards are met. If not you have what we have now, nothing much.

And because of everything I have mentioned. our transaction volume and demand IS SO LOW. No one is using ICX for ANYTHING AT ALL. Except betting. + the excessive supply of icx in circulation from compounding staking. More people restaked, more rewards distributed, more people selling ICX when they unstake.

If we can’t garner enough transaction and volume to outbeat this inflation and staking compounding, ICON blockchain is doomed. It is not sustainable.

You can be optimistic all you want. Look at the real data and volume from https://www.dapp.com/market/ICON and judge for yourself. What are we even doing?

In short, here are 3 things I ask for:

  1. ICONLOOP speak up, communicate how you are bridging the gap between icon public chain and ur enterprise projects. How is ICX being utilised. What are your future plans on ICON chain? Else people would think you guys are just raising funding from ICON chain to develop ur own self-interest projects.

  2. Get talents, recruit talents. Get rid of unproductive p-reps. Most of them are useless. Rmb the 20-80 pareto principle. 20% of the p-reps contribute to 80% of the network. Let’s focus on that 20% and build them up. Cut the 50% tail behind us.

  3. Build solid dapps, i am seeing some potential with the DeFi dapps coming up balancer omm and etc. But we need MORE, MORE, MORE. Just these 2 DeFI projects is not going to make the cut. Realise that it is just a few people who are building apps. For point 3 to happen. Point 2 needs to happen.

ONLY when point 1,2 and 3 is addressed, fixed, resolved, tackled, discussed will we see ICON reaching to new highs. At this rate and pace and development that ICX and ICON Chain is progressing, we are not going anywhere. If you realised, we have been stagnant. Don’t be fooled by ICONLOOP news development, though big, if they can’t even contribute 1%, 5%, 8% of the transaction network you can forget about it. It is their private profits. If they can do 10% on the public chain, then we are talking about something here. That should give people the confidence to invest in ICX. But if they can’t even do that after so many years, then we should ask ourselves whats wrong here?

Lastly, please come up with a metric that measures p-rep contribution. Properly. I have suggested this to Benny. ICONpreps.com is not to standard, but it is a start. when i go to ICONpreps.com browse through the stuff, I am still unclear who does what and who should I vote for. A laundry list of information does not work.

we should come up w visuals or smth and group it BY p-reps so is like when voters see each p-rep, they immediately recognise what they do in a nutshell in < 10 seconds. That should be the goal. And this should be presented on ICONex level, the place where they delegate votes. A single button click, they can see what each p-rep does in 10 seconds in a nutshell.

Rmb this. “What doesn’t gets measured, does NOT improves”.

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Great post! I think we need to recruit more developers and make a push towards more transactions and real products.

However, there is alot in the pipeline that has been announced just a few months ago and developing these kind of things with proper auditing takes alot of time.

Balanced
omm
iconpool
Licx

These are applications that will make alot of transactions i believe and it Will be interesting to see how much they can generate once they are released.

However…
I don’t think the price decline of the token has anything to do with this tho. It’s simply the market cycle doing it’s thing. Bitcoin dominance is gaining alot and we can see most projects loose value when the dominance grows. Even ethereum is not gaining to much value that it should right now, being the most used blockchain in the world and being the backbone of almost all defi tokens. If the market would value these things, ethereum would be not be sub 500$ right now. Same goes with icx and every other fundamentally strong project.

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I’ve said and will continue to say it:

ICON, as a name, is about 3 years old, but the product has only been capable of supporting and encouraging effective adoption and integration for about 13 months, since decentralization.

Whitepaper/Token sale Late 2017.
Mainnet launch early 2018
Decentralization October 2019

The network and all of it’s capabilities were being developed between 2018 and 2019. As “investors” we all funded the idea and ideas take time to realize.

If you look at what has happened over the past 13 months with all of the announcements, partnerships, adoptions, integrations and growth - ICON is actually over achieving in every capacity.

The transaction count will - NEVER - just spike up. That’s not how “adoption” works and it takes time. Anyone who has done any work with big companies and governments knows that these are slow moving entities.

Ultimately there are a number of other projects coming soon that will help too, but at the end of the day I think most people are misrepresenting the amount of real, useable time that has passed and mismanaging their expectations.

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@tyler64 thank you for taking the conversation to the forum over telegram. I appreciate the effort. Overall there is only so much to say here, as I agree with most of what you have said. We are working on solving these issues everyday, they’re not lost among us.

I agree with this, but I’m curious how you propose cutting the 50% tail. Do you want ICON to hand-pick the nodes so only whitelisted addresses can register a node? I am wondering what you think the best approach is here.

Excellent excellent post. I wish the people in charge of icon would think, talk and act like this. In a timely manner. I wish min or the ceo would read the forums and communicate and act on things. I wish I wish I wish.

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Honestly, Tyler, your post is the only path that makes common sense for success. I hope action can be taken to move in this direction because you are right, over 80% of investors will agree with EVERYTHING you said here.

Well said.

Hi Tyler64, nice to see you back. A lot of what you are asking for, as Sazern says, is already in the works. We have a few solid dapps coming that will create multiple ICX use cases and plenty of demand imo. Have you read the Balanced.Network whitepaper yet?

P-Reps don’t make much money mate, you can’t really expect that much of them. What you should be looking to support/be excited about are the people building on the ICON network. They will be getting grants from the decentralised CPS or directly from ICON.

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What specifically do you think needs acting on? There are always things that need doing and ICON is always doing stuff. We’re (P-Reps) constantly helping them where we can too.

Great points mate, we as a community need more discussions like this about where we are going.

And props to you for the visualization idea for iconex, perhaps small descriptions and links to projects etc would greatly help.

Some excellent points Tyler and I agree that we should have a few concerns with the amount of activity on the ICON Network. But having said that lets look at some positives:

  1. ICONLOOP may not be (at this moment in time) generating much in terms of transactions for ICON but we can all agree that they are building some high profile relationships / partnerships in Korea. This can only be seen as a positive sign for the future of ICON the Public chain. If and when enterprises and/or governments decide they are comfortable using Public Blockchains who do you think could have an edge here.

  2. Who is generating transactions, you’re right here, ICONBet is literally the only one with meaningful numbers but as Sazern pointed out, we have so much in the pipeline, Balanced, OMM, ICONPOOL, LICX, ICONFi, which I believe should bring those numbers up.

  3. As Brandon has already pointed out, Decentralization only started in October 2019. Now lets compare that with something like Ethereum, which took almost two years before it reached 100,000 transactions per day. Adoption takes time and we cannot expect everything to ramp up the moment it goes live.

Also, lets not just take transactions as the only indicator. Im not sure how accurate Dapp.com is but when you have a look at the 24hr transactions on Ethereum its really not that impressive considering that they are only second to Bitcoin in market cap. I think the screenshot below just shows you how early this space really is and we’re still only splashing in a paddling pool with a whole ocean yet to break into.

Min mentioned in a few interviews now that the team has been mainly focused on the developments at protocol level i.e. ICON2.0, governance adjustments, tokenomics etc. Next year the network should become more “decentralized” and more focus should be directed to development/building applications.

The important thing here is that the ICON network is moving forward, arguably small steps but nonetheless, steps forward.

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