Wenzel Bartlett (Forum: @wpb; Twitter: @BartlettWenzel)
Several people in the IC community have commented in the forum and on social media that Dfinity should communicate changes that affect tokenomics so more people are aware of the changes. This proposal is an attempt to formalize that suggestion. It is possible that Dfinity does not want to or cannot send this type of information for legal reasons, but perhaps they can do it if the community requests this action by way of governance proposal and a decentralized decision by the governing body.
Dfinity should send a communication to their email distribution list(s) that they believe are most likely to reach current ICP stakers. This communication should include information about tokenomics changes that have occurred since genesis including changes that have been approved for implementation by way of governance proposal. It should include relevant information about proposal 34485, proposal 55651, and proposal 48623. The communication should also include a description of how ICP stakers can currently maximize voting rewards. Below is an example of a letter that would comply with this communication proposal. This letter is not required, but it is provided in case Dfinity wants the communication to be drafted solely by the community.
—- Begin Letter —-
Dear ICP Governance Participant,
We want you to maximize governance rewards. ICP is a governance token. Staking entitles you to vote, but voting entitles you to voting rewards. Voting rewards cannot be earned unless you vote and ICP tokenomics is intended to incentivize participation in governance. It is a mutable governance system and changes have occurred since genesis that are intended to incentivize participation. This letter was written by members of the Internet Computer community in order to communicate and educate as many NNS governance participants as possible about these changes. It was posted on the forum, deliberated by the community, and presented as an NNS proposal. The proposal specifically requests that Dfinity Foundation send this letter via email to the email distribution list(s) that they believe have the highest probability of reaching current stakers in the NNS.
A major goal of Internet Computer governance is decentralization. Significant progress has been made over the past year, but there is a lot of room for further improvement. One change that has catalyzed progress is proposal 34485, which was deliberated and approved with overwhelming support by the governing body in late November 2021. This proposal had two objectives: 1) remove the Governance topic from the All Topics “catch all” and 2) weight proposals so Governance topics have much higher significance to voting rewards. The proposal was implemented in mid February and governance participation went up dramatically from approx 5% in December to approx 45% by late March. Since implementation, neurons that are voting on Governance proposals are earning significantly higher voting rewards and neurons that are not voting are earning significantly lower voting rewards. This change was designed to incentivize people to select Followees for the Governance topic, including new choices to follow public known neurons like the ICP Maximalist Network, Cycledao, and ICDevs. Everyone who stakes in the NNS can start earning voting rewards for participation in Governance topics. It only takes a few minutes to select one or more Followee for your neuron in the NNS dApp at https://nns.ic0.app. A great source of information for how to configure your neuron is the internet computer wiki at https://wiki.internetcomputer.org.
A more recently approved change is proposal 55651. It specifically recommends confirmation of Followee selections every 6 months and automatic reset of Followee selections if they are not confirmed. Removal of Followees will cause the neuron to stop voting automatically, and therefore, stop earning voting rewards. The purpose of this change is to ensure that neuron owners are making active decisions on who they want for their Followees and also ensures that the Followee cannot have permanent voting power from the follower if the neuron owner is inactive. The goal of this proposal is to increase governance participation by incentivizing inactive neuron owners to actively select a Followee for the Governance topic.
Finally, proposal 48623 is intended to change how maturity is handled by the NNS governance canister in order to avoid problems with incurring a tax burden and to enable compounding maturity with the least manual effort. This was the most controversial of the proposals that have changed tokenomics and you are encouraged to read the proposal in detail for more information.
Everyone who is staking ICP should know that the governance system is mutable. It can and will change over time in order to incentivize participation. Even with these changes, the amount of work it takes to actively participate is minimal. You just need to remain aware of changes and to spend time deciding what neuron to follow to help you maximize your voting rewards. At this time, the easiest way to maximize voting rewards is to configure your neuron with a Followee for the Governance topic and for the All Topics Except Governance “catch all” category. Soon you will also need to confirm your Followees periodically, but this should be a very simple task 2 times per year in the NNS dApp.
—- End Letter —-
The information below this line will not be submitted in the proposal.
This proposal has been deliberated for 7 days and the comments have gone quiet. The proposal drafted above has been revised according to community feedback. It will be posted for further deliberation for 3 days and then it will be submitted to the NNS.
This proposal has been generously funded by 4 individuals so far. This crowdfunding effort was intended to raise the proposal reject fee of 10 ICP (goal exceeded) by at least 20 people (goal not achieved yet) who would be willing to offer microdonations as a way to “sign the petition”. Donations of any amount to the account listed below are welcome. All donations will be used to top up my proposal neuron listed below, which has an 8 year dissolve delay (not dissolving). Deposited donations cannot be refunded.
Donation AccountID: 10517e297382fd13abf9a1d05ab35b67a6875e26462d881d87418206094e4b84