WaterNeuron Suggestion

Governance SNS Project Governance
1

Dfinity is working on updates to reduce the minimum time to earn rewards from 6 months to 3 months. As a community, we decided the benefits of increased governance outweigh the costs of reduced security.

Today, WTN neuron holders have amplified voting power. That is to say, WTN neuron holders control ICP that was raised in the SNS sale, and also future ICP that will be staked to nICP. As a result, on a dollar for dollar basis WTN neuron holders have a far outsized say in ICP governance than ICP holders. For folks looking to game ICP governance, it’s cheaper to buy WTN than to buy ICP.

Today, the minimum amount of time one needs to stake to earn WTN is 3 months. While I agreed with this change for ICP, I think WTN needs a higher time threshold given the amplified voting power.

At a minimum I think we should have 6 months to a 1 year lockup before WTN neuron holders can earn rewards.

What do people think?

3 Likes
2

I think this is a great point to be raised.

My question becomes at what price does WTN have to be at to make it economically unrealistic to obtain mass vp through the protocol?

3

If part of the value from ICP derives from its governance power then the market should reprice WTN in the future given its governance power.
How does a longer lockup change the security? Why would a 6months vs 3months unlock make it more secure? Is the theory here that it would then take 6months+ instead of 3months+ for someone to accumulate a lot? But if someone tries to accumulate the price goes up anyway?!

1 Like
4

I think the fix to this is raising WTN price, not make the dissolve delay longer.