With the launch of the Nebulas Autonomous Token (NAT), some community members have expressed concern and disappointment about the incentive mechanism of NAT distribution. Many feel that unless they are being rewarded for voting, there is no reason to utilize their NAT and prefer holding. This will result in low participation rates within the community.
For those that do not understand the current NAT incentive system, let’s review.
To receive NAT incentives:
- An address must utilize their NAT via voting during the current week/cycle.
- The address must have a Nebulas Rank (NR) score which results in NAT distribution for the previous week/cycle.
- If you meet the above two requirement, you qualify for NAT incentives which is 10x the lower value of the above two statements.
Example of NAT incentive distribution:
An address has received 200 NAT via it’s NR score the previous week. The same address has voted 100 NAT this week. The lower number of the two is how many NAT were voted this week which is 100. In return, they would receive 10x this value which results in a NAT incentive of 1,000 NAT (100*10=1,000).
No incentive is given to users who received NAT via pledging and have participated in voting.
While this system is highly beneficial to users with a NR score, it does not give incentives to addresses that are receiving NAT via pledging which is the majority of current addresses.
In addition, some of the confusion came from a Tweet by Hitters Xu where he states “I think the real Staking goal is about the consensus for crow governance instead of speculation. So actually we recommend more participation. If you use your address to get NAT and vote, you will get 9 times NAT return. $NAT is pretty that is why we love Nebulas!”(https://twitter.com/HittersXu/status/1128148422257627137).
We, the community love Nebulas too and many of us align with the vision of “Let everyone get values from decentralized collaboration fairly.” We are hoping that the NAT program can be adjusted to meet this goal.
I hope other community members - including those who are developers and ecosystem leaders (Nebulas Technical Committee, etc…) can share their opinion about this issue and if deemed necessary, create a fairer system in collaboration with the community.