Validator rewards

@guy
@can

Is there anyway to model the tokenomics and validator rewards, the same way that Bitcoin is modeled?

For example:

Assume Swap supply ~ 150 million

We put a hard cap of inflation tokens at 60 million.

Total supply of SCRT to ever be made will be 210 million. (10x bitcoin total supply)

Similar to Bitcoin fashion, we can start with 18000 SCRT reward for computations per day for 4 years. Then we can have a halving and have 9000 SCRT reward for computations per day for the following 4 years.

This will keep nodes incentivized for decades. It will also create a disinflationary system.

Essentially this will be a true proof of work. Because instead of doing random useless computations for mining bitcoin, enigma nodes perform valuable and productive computations that does true work while at the same time maintaining both network security and data privacy.

The SCRT tokens would then be both a utility token and store of value. Having both utility and store of value would create a huge incentive to stake and maintain network security.

I think that this model will be more advantageous than the current inflationary model. I think long term, this inflationary model will hurt SCRT’s long term utility and incentives.

I know that this is something that would need to be voted by the community after the swap. But I’m wondering if you guys had any research on this or opinions about it.

This is technically possible to do but I explicitly think it should only happen if the network wills it to happen organically not enigma the company. We can no longer turn to them to make these decisions. Our best bet is to have enigma focus all their energy on the privacy technology, which they are experts at, and have the community and other ecosystem participants to pick up other initiatives.

1 Like

Thank you for your input. Yes I know that the community will have to make a vote after the swap to make any changes. I just wanted to know if @guy or @can had done any research on it or had an opinion about this model.

I wonder how their opinions would influence things though.