It would however make masternodes and the investment in Firo they require more attractive. Rewards will be sold just the same, but people will likely be investing more to get the nodes. If price increases, then that will at least create a delay for people looking to sell off some rewards…
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Also unlike mining costs, it’s easier to save up masternode rewards as node costs are pretty cheap.
PoS always enters a death spiral.
The cost of producing the coin is the base value of it.
Masters node will dump coins even more, as the cost of production is negligible.
It is a race to the bottom, like all PoS systems.
PoW is self regulating and fair. With PoS you will end up in hodl cult.
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I would be ok with this… but still would hand the dev team a little more instead of the community pot. But yes funding integrations may be a ‘value added’ expense.
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At least they are investing to begin with. Miners just selloff without any investment in the project.
Why don’t we change firo to POS (Profe of stake)? I vote for
10% miners fee
60% master node reward
I think because mining still offers good backup protection…
One other thing I think will eventually have to be explored, is the ability to home host a larger stake. We shouldn’t over rely cloud hosting etc.
Technically, they already invested in hardware, and electricity cost
It’s great to see the community stepping up and discussing it.
I think the vast majority are agreeing on some basic points:
-
Miners should go to a maximum of 10%
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Masternodes minimum 60%
-
Community Fund with up to 10%
I think we might find a middle ground somewhere by reducing the community and increasing the dev fund.
The Community Fund can start with a 5% and can be on a test period. This means we would need a tracker to follow up with either fund successes or failures and set a deadline for it to continue or not.
How about having the change and follow up with optional modifications, with deadlines?
Block R. Phase 1: (immediate change)
65% Masternodes
20% Dev reward (+5%)
5% Community Matching Fund (-10%)
10% Miners
Block R. Phase 2: (Option 1, Community Fund is a success)
65% Masternodes
20% Dev reward (+5%)
10% Community Matching Fund (+5%)
5% Miners
Block R. Phase 2: (Option 2, Community Fund is a fail)
Block R. Phase 2: (Option 2, Community Fund is a fail)
70% Masternodes (+5%)
25% Dev reward (+5%)
0% Community Matching Fund (-5%)
5% Miners
Basically, the following structures are creating incentives for both Devs and Community to step up, get involved, track the CMF workflow and discuss future strategies.
The thing with centralization of nodes (e.g., allnodes) is that yeah, it’s not the best way to go. we should provide incentives (preferably within the blockchain) for higher security standards.
For the record, mining farms are no different than allnodes.
Moving forward, we can set up a 2024 initiative, that will allocate the 5% of the miners, for a “security cause” meaning, an additional 5% for Masternodes that are unique and provide additional security. how is it possible to detect? No idea. That’s why 2 years might be enough time to study and think of a technical, software method - within the blockchain, that can identify it and to allocate the 5% on top of the Masternode rewards.
This will increase MN rewards but will encourage them to find more secure locations for their nodes, with that extra optional 5% (which everyone will want, once Firo price goes up).
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Yes but not to mine specifically Firo. They mine whatever pays that day…
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“Moving forward, we can set up a 2024 initiative, that will allocate the 5% of the miners, for a “security cause” meaning, an additional 5% for Masternodes that are unique and provide additional security. how is it possible to detect? No idea. That’s why 2 years might be enough time to study and think of a technical, software method - within the blockchain, that can identify it and to allocate the 5% on top of the Masternode rewards.”
If I had one node, I could just run it at home. I probably wouldn’t use allnodes (even though they provide a great service tbh).
However if you have more than one node, you can’t run both at home. My idea was a dynamic node, where the more collateral you lockup, the more votes and rewards the node has. for example, 10k node has 10x voting power and receives 10x rewards compared to 1k node. There probably would have to be limits to encourage more computing resources, but I figured that is something the community can decide.
I’m really not sure that buffing the masternodes can have a positive impact, no pos coin has improved, plus I remember an old privacy coin that went pos and they died trying to make pos work and have privacy. Not sure if that’s our case.
On other front, I think getting smart contracts would be a better incentive to raise value on the project.
Really awesome seeing all of the activity and civil discussion occurring here! Thank you to everyone who has taken the time out to post and discuss!
I don’t disagree with increasing Masternode rewards - they are crucial for the network and a lot of Firo tech is going to be reliant on them even further for the future. Though I think it is a bit of a leap to assume every MN holder is keeping all of their Firo rewards rather than selling as some posts here have implicated; however, logic would certainly suggest that this move would encourage holding Firo rather than selling. I am slightly concerned this may also discourage people from actually using their Firo. Because of this, as Samuel has said, I would be very interested if there could be other ways for those with less Firo than a Masternode to be able to use their Firo such as staking (preferably without KYC), especially since where I am I don’t really have the option of current options such as Binance. The best part is if there were options for those with less Firo to be able to earn they may be less likely to turn to trading.
The next aspect I think some people might be overlooking is that mining is not obsolete - the miners of Firo still provide valuable aspects to the project. That being said, they are not in the same position as they were in the past, and I can understand that the reward should change accordingly. In this instance, increasing the MN reward is advantageous, but I do think we should be careful about undercutting the miners too steeply. Though, for miners who may be concerned, it is also worth noting that though the percentage may seem low, it is also relative. If the mining profits dip, there will also be a dip in miners, which means there will be fewer people in the pools and the difficulty will drop - potentially even with the smaller percentage there could still be enough to go around. Or at least that is my perspective on it.
I really like the prospect of the Community Fund and it could go quite a ways to help encourage the community to make proposals for improvements. That being said, what happens if the community does not follow through with making proposals and providing funds? Will the Community Fund simply keep accumulating? Would the team need to make a proposal and get funding from this like any other proposal should they need the money for something such as a listing?
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Though MNs with higher collateral could be convenient for a bunch of reasons, the unfortunate fact of the matter is that I think this would actually weaken the security provided by the MNs. The creation of the 10 masternodes would provide greater security than one big one, and given the nature of the MNs, I don’t think there is a way around that?
I think ETH is going to do pretty well with POS. Right now, it seems to me the rewards for masternodes Vs mining is opposite to what they should be. Also higher yields will offset the perceived risk in investing in Firo to acquire 1000 coins. Theoretically if it encourages more people to acquire nodes… Firo supply will dry up fast until the price of Firo rises enough to tempt people to sell. The difference now though, is the dev team will be more flush with cash in fiat terms and can invest accordingly…
Maybe diminishing returns for voting power and rewards the more collateral you stake. All I know is relying on a cloud service is a liability. Pretty sure if allnodes was in Canada, it would be shut down by now if people were actually using Firo to try and stay free.
“I am slightly concerned this may also discourage people from actually using their Firo.”
I don’t know about that. I tried to use some Firo rewards to pay a freelance coder the other day. He hadn’t heard of Firo unfortunately so he requested payment in LTC. Still I told him what Firo was afterwards and his response was " I looked the TA, it has a potantial. I will keep my eyes on it.
4$ is obvious strong support area.
~5.50$ is daily supply zone
~7.30 - 12 is weekly supply zone"
I am in favor of increasing the reward for masternodes.
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I am in support for this proposal. You are absolutely right that miners dump on us MN owners!
As some other mention i also think it would be wise to transit to PoS at some point. I think the only coin that can sustain using PoW is Bitcoin. All other will at some point move to PoS.
Even Zcash has plans to do it.
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