Crypto Duster

I like that validators earn fees, but the fees are often infinitesimal–creating currency balances too small to even trade. A crypto-dusting feature, where users can convert crypto dust into PRV, would be incredibly useful.

For example, Crypto.com has a dust feature that enables users to turn small balances of BTC, stablecoins, and other cryptos into the platform’s native CRO or MCO. On Incognito, I think validators would love the ability to convert small balances into PRV.

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great suggestion. thank you! cc @ning @binh @phuong @thaibao

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alternatively, what’s your thought on exchange it for a new kind of stablecoin?

what i meant by stablecoin here is not 1:1 usd-pegged coins like usdt or dai. but it is stable in the sense that it’s pegged to a basket of assets, which is a set of select coins {BTC, ETH, etc}.

since the current fees are too small anyway, converting them into PRV won’t be a lot. why don’t we use it for an experiment to see if we can create a true crypto-stablecoin that is pegged to a basket of cryptoassets rather than off-chain asset like USD?

so holding 1 unit of this new stablecoin will guarantee that you can always redeem for x% of btc, y% of eth, and maybe z% of xmr :slight_smile:. and vice versa you deposit that same amount to get 1 unit of this new shiny stablecoin.

it’s stable in the crypto world. it has nothing to do with the dollar.

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I am definitely intrigued by the idea of a crypto stablecoin. Would validators need the exact recipe to get one of these coins? For example, would they always need BTC, ETH, and XMR? If so, this might create a slight roadblock for validators who want to sweep up all sorts of dust, including BUSD, BNB, and MATIC.

I wonder if users would like a choice between converting dust into the crypto-pegged coin, or into PRV, similar to how Crypto.com allows users to choose between CRO and MCO. I personally like the option of converting to PRV, as I feel every last particle counts. Looking at how the staking pool calculates earnings, it gets down to one billionths of a coin. That’s impressive. If I could easily turn one billionth of a Bitcoin and of a BUSD into PRV, and then stake that PRV, I would consider doing that.

But I think a second option of a crypto-pegged coin, pegged to a basket of assets, would also be very attractive. I think users would like anything Incognito could do to breathe life and value back into the dust.

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This idea is interesting. It would be cool to see the community vote on what they want as a part of the basket that way the free market decides. The question is how many would the basket include and how often would there be a vote --maybe once a year?

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Personally I love the idea of a crypto duster being able to exchange micro amounts of coins directly to PRV. In terms of a stablecoin fund idea - in my opinion this is not a good idea. Simply because there are literally over 60 different stablecoins in the crypto market right now. And because I think the time and energy of the incognito devs should be put towards other things that are more of a priority. That’s just my opinion doe.

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Your idea might need its own thread. You are suggesting an evolution of stablecoins since it’s not pegged to fiat. That is an interesting idea. However, I’d almost argue that BTC is that already since there are already exchanges using BTC-??? pairs for many non stablecoins. But the notion of a ‘stablecrypto’ not tied to fiat is probably a requirement for the evolution of the overall technology at some point.

For this project, I think the duster needs to be simple. Exchanged to PRV (or really anything) is straightforward enough. Maybe offer a bonus if the dust could be converted to a pair and then invested in liquidity. That would be more complicated to implement.

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@Josh_Hamon, great points.

A duster that converts to PRV would be preferable, but an alternative to the duster would be allowing users to withdraw node earnings into any account of their choice. That way, all their dust could settle into a single account. It would accumulate faster that way, so we can eventually use it.

That’s one alternative, but the duster would be best.

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If nodes could withdraw to any wallet that would also be viable.

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You know what might be a cool duster feature: enabling us to pay fees with the dust.

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