It is widely acknowledged that further development and iteration of ckBTC is needed in order to have a neutral and decentralized final product. Therefore I’m climbing onto the dunking booth in the hope that someone wants to take aim at this proposition:
- SNS is created for the purpose of handling BTC KYT
- SNS governance token is ckBTC (ICRC-1)
- SNS declares BTC unclean or clean again, adding or removing it from KYT Registry
- Age/staking bonuses reward governance participation (similar to NNS)
- Voters can follow KYT Poviders/researchers (similar to NNS Named Neurons)
- Anyone can propose a Registry change for a fee (ckBTC) proportional to the amount of BTC affected (somewhat similar to NNS)
- Contributors to the KYT Registry are rewarded with BTC taken from BTC/ckBTC conversion fees, proportional to their submitted total of unclean coin currently in the Registry
- SNS voters are rewarded with ckBTC taken from proposal fees proportional to their voting power
- Unclean BTC that is already in canister is placed at the back of the line for ckBTC redemption; thus abandoned and lost ckBTC will correspond to unclean BTC that is never retrieved, helping maintain the 1:1 value of BTC:ckBTC
Advantages:
- Participants are those who care most about BTC value
- High value of ckBTC protects against hostile takeovers
- Those who want no KYT can follow a KYT Provider who votes to mark everything clean, effectively raising the ‘tainted’ threshold for every vote
- Incentivises both adding and removing BTC from the Registry (based on reward disbursements and followers)
- Incentivises legacy KYT Providers to become Web 3 KYT Providers