totally agree, i’m actually providing liquidity waiting for the node tree
@sato I think one of the considerations that @Thriftinkid is making is how markets will optimize to whatever incentives are governing them. And if the Provide incentives start to produce higher rewards than node hosting, you may very well see some people start to push their PRV into Provide, rather than hosting nodes. Not all will do this, but markets do tend to find optimal solutions available. I think the question is how do you balance Provide’s return with Node returns in the interim as the network is growing, or at least what is the plan to do so…
Provide is good, node hosting is good, we need both and growth in both, so how to make a system that doesn’t cannibalize one over the other until the network is up and running full strength, these are the growing pains of any new project like this I would assume.
Well said Doc and I agree with you…
Balancing fees to bridge this gap could be a solution, in a dynamic way.
Outside of incognito, to send an ERC20 token you spend 8 $.
A smart contract call costs $ 15-30
Sending BTC costs $ 1-5
Inside the incognito network you can spend 0.000001 (0 more 0 less) PRV that is 0.0000015 $. This is extremely low.
Low fees are one of the reasons i am on the INCOGNITO network.
By working on the fees we have room to adjust the various rewards and the fees would still be really low.
And these fees could change to keep those 2 conditions satisfied(LIQUIDITY APY/NODE REWARDS).
I have a question:
on PROVIDE we earn 9% on BTC for example
that 9% is based on the BTC/PRV price?
i mean if 1 BTC is 10000 PRV(1$PRV) i would earn 9%APY of that amount
if 1 BTC will be 5000 PRV (2$PRV) i would earn 9% APY on 5000 PRV
is that correct?
because the other case is that i will earn based on the USD price.
Offcourse that is only for the other crypto when providing with PRV you will get always the same 37% also when PRV prices rise.
Hey @Thriftinkid, got what you mean. The running nodes will be always more profitable than using the Provide function.
Current % rates were set up back in July when the network was powered by 1560 Nodes, currently, it’s around 2046 Nodes, and Provide rates will be rebalanced accordingly.
We do a calculation and will share more info soon, when when it will be finalized.
Hey @Katoshicoins, you earn interest based on the currency provided, not on the current PRV value of the total amount.
In this case, the APY is on BTC. so you’ll earn 9% APY on your BTC, paid in PRV (calculated at the current price). Recalculation happens every hour, along with compounding.
This is a very important question. If Incognito wants to grow they will have to become fully decentralized. This is now standard in DeFi, most users stay away from projects that are overly controlled by the team.
I wouldn’t mind paying up to $1 dollar in fees for each transaction if that will help Incognito to grow. It’s a fair tradeoff.
On the 2020 roadmap, in big bold letters it said the overall goal was/is 20,000 nodes online. We have around 1700 or 1900 last I checked?
My question-what is the exact number of online nodes we are wanting before the team draws back their nodes/opens up slots? Are we needing 5,000 or?
And when the team draws back their nodes and/or frees up slots, will this be done incrementally over a month or so, so the system won’t be shocked too much (I think that it should be done incrementally, fyi )? Thanks!
P.S. I see you mentioned, “once the network is stable”, that’s what my question is about, what is the number related to “stable”, if there is one?
Actually we have 2039 nodes https://incscan.io/network/validators and as far as I know more or less 600-700 of these are under the control of the core team.
Hey @Jerry_Watson, it will definitely be incrementally. Before it happens there is still quite a lot of work to be done.
“Stable” - not only means a number of nodes but some other critically important development like
- Dynamic Committee Size
- Privacy v2
I hope the whole community understands the reasons why it should go on this way.
From the network perspective, there is no difference either you connected with pNode or vNode or Node Tree. But from the user experience perspective if you want to have more public data about your Node device, share your suggestions and ideas in this thread Network Explorer and @inccry might implement some of your ideas:)
Oh okay, that makes sense!