I’m also interested in how staking improves futarchy decision-making. This isn’t intuitive. It seems like with or without staking, if you’re voting based on your financial interest, you would vote based on how you think others will vote (Keynesian Beauty Contest).
A 30 day lock-up period doesn’t seem long enough to encourage decisions based on long-term time horizon and a vote’s affect on the protocol future. Governance through futarchy seems geared towards short-term price movements rather than long-term success of the protocol. Having a delay in claiming following a futarchy vote merely seems to extend out the short-term nature of the trade, but it still makes the voting decision based on short term price movement.
Lastly, how do you separate the impact of futurchy votes from the general market impacts on price? If the market (and CLOUD token) is trending up or down at the end of a vote, won’t people vote to take economic advantage of general market movements?
Staking should NOT be locked, stakers should have the privilege to withdraw their funds anytime they want but withdrawing funds will forfeit half of your staking rewards.
The initial 50M ASR seems more attractive, the higher the ASR rewards the more people will onboard in the governance. The more CLOUD staked, the better liquidity for $CLOUD token.
Quarterly distribution seems the most fair of all. It will not put a lot of work to the team rather than doing it on a monthly basis.
How are token holders going to benefit from the 1.6B TVL? Rewarding stakers with freshly distributed $CLOUD from the treasury is just ponzinomics. Distributing at a pace of 3% of total supply in 6 months is asking for troubles.
I have no clue to how this voting with futarchy is working. How can I vote with my big bag of $CLOUD that I am currently holding? I can only vote if I sell my $CLOUD and use the USDC to vote (and buy back?). It’s just overcomplicated.
I have the feeling that Sanctum is forcibly looking for complicated solutions to make the impression of innovation. But governance does not need to be reinvented imo. Just implement governance like it is implemented by 99% of the other projects and spend your innovative capacity on something else.
In my opinion, what works best. 0 rewards for voting. 0 lock-up time. If proposals are impactfull and have any value, token holders will vote. If proposals have no value, people will not be bothered to vote. It is simple as that.
Luring people with rewards to come and vote is not sustainable. If none is participating in your votes, it simply means that none thinks it has any value to do so.
The point of staking that isn’t for economic security is to reduce sale pressure and to decrease the liquidity. Jupiter has had success with this and shown that it works. Although Proph3t mentioned a benefit specific to futarchy, which I am interesting in hearing. I don’t really see an issue with the 3% staking rewards since this is presumable going to long-term supporters of the protocol rather than farmers who will immediately sell.
I have difficulty with this as well. It doesn’t really matter how much CLOUD you currently have. The only way to reflect a positive viewpoint for a proposal is to buy more CLOUD. But if I think a proposal is detrimental to the asset price, I have to sell my CLOUD (which I don’t really want to do) to maybe (if I’m correct) buy back my CLOUD at a lower price. I’d rather just hold my CLOUD long-term than try to gain off short term governance trades.
it’s good for sanctum to apply staking and asr but here’s the key, everyone want to stake of course for the reward but, everyone doesn’t want to be exit liquidity or sell at the bottom because, token lock period, i think it’s good yeah if sanctum gonna applied vesting mode
My name is Renan. I have a degree in fine arts from the Federal Rural University of Rio de Janeiro. I was invited by udntknwwhoweare to make a cloud-themed artwork for the CLOUD community. The artwork has a dream theme and the cloud we see in the illustration is a reference to the tattoo I have on my elbow. It was done on paper and there is a digitally colored version. I hope you like it!
