Project idea: The Voting Marketplace

GitMyCodeUp

This project idea is originally submitted for the Nubulas, but can also be expanded to many other DPoS networks.

This project can become sustainable only after the adjustment of the current block production system of Nebulas. Where the top 10 nodes are producing 80% of blocks (and receiving the appropriate 80% of NAS emission).

The idea
For NAX holders:
Create a decentralized voting marketplace where NAX holders can consciously choose nodes to vote for.
For nodes:
Create a platform where nodes can compete for votes in a fair and trustless manner.

Problems of the existed Nebulas voting system

absolute monopoly of large (by the amount of NAX voted) node on the block production
nodes are competing with each other by rewards distribution percent (while there any many other important factors for NAX voters to consider: node setup performance and security, node input in the Nebulas development, activity in the community discussions, etc.)
non-transparent process of NAS rewards distribution to NAX voters (nodes can trick users by distributing lower NAS rewards than they are claiming to do)
no infrastructure for nodes to distribute NAS rewards to NAX voters (each node is building own tools or distributes NAS rewards manually)

How it works for user

The user (NAX voter) deposits NAX to the Marketplace, and receives vNAX (voted NAX) in return.
The user chooses a node (or multiple nodes) to vote. The Marketplace UI includes information about NAS rewards share, node technical and performance information, involvement in the Nebulas project, etc.
NAX votes are cast to the node/nodes.
NAS reward, that was produced by nodes are collected by the Marketplace smartcontact, and can be withdrawn to the user wallet on user request.

The Marketplace itself should have an intuitive and easy-to-use web application.

Marketplace smartcontract role:

Tracking the operation of the nodes (uptime, block production, etc.)
Issuies and burns vNAX
NAX deposits collection and management
NAX voting for nodes
NAS rewards collection and management
NAS rewards withdrawal

Business model

Fee from NAS rewards distributed to NAX voters (with 100k NAS distributed to nodes monthly, 30% of NAX votes moving to this system (pessimistic scenario), 5% fee) ₁₅₀₀ NAS/month
Paid featuring for nodes who want to have better visibility (and accrue more votes) in the web app
Regular banner ads

Positive side effects

Involvement more NAX holders in the voting process
Locking up a higher percentage of NAX supply into the PoD
Unlocking the liquidity of voted NAX in a form of NRC20 token vNAX (user receives vNAX when depositing NAX to the Marketplace smartcontract)
Lego puzzle for the native Nebulas DeFi (NAS rewards can be automatically exchanged (onchain) for NAX, and NAX transferred back to marketplace smartcontract, creating the compounding effect)

Hitters

Thanks for the post and I really like the idea. This also could be the Lego puzzle for the native NAS Defi. Agree with that.

The only concern so far is the necessity of creating vNAX, coz there is no unique value of vNAX since they are voted into different node system. And if we get rid of vNAX, I think this marketplace still has its value.

I personally embrace all proposals which can improve the transparency, openness, and collaborations of Nebulas ecosystem.

BTW: it is time to reconsider the reward distribution since we are getting used to this system. We may talk more based on detailed proposal to find the effective one.

GitMyCodeUp

Hitters vNAX could bring a huge amount of advantages:

Unlock all NAX that are currently staking. All large protocols (Tezos, Cosmos, etc.) are currently actively researching to bring liquidity for the staked assets. See Liquid Staking Report by ChorusOne. I agree that it could not be a benefit because of NAS+NAX design for staking at Nebulas - that’s the topic for further discussions.
Greatly reduce the voting/earning power of exchanges and other custodial services. Users will likely move to the Marketplace because they will receive vNAX 1:1 in exchange to voted NAX (while when holding at the exchange they are receiving nothing). The step to the better network decentralization.
Create another high-liquid high-demand token for the onchain liquidity pool. In my view, NAS-NAX-vNAX pairs will be the most liquid. vNAX could be a great asset for speculation.
etc.

As mentioned in the topic name - it’s only an idea. Anyone can provide input. And hopefully, we will find the team that will turn this project idea into life. Imo, this is a good project for DIP season 2.

Hitters

GitMyCodeUp

The open market for voting is the thing we need to do followed with transparent dashboard and that is the right track. NAS foundation will provide more help for this topic/project based on experience we learned from the node platform.

One thing to mention is that if we make voting based on dStaking method, there might be no need for vNAX. We want to bring some innovation about current POS and defi market which could be more decentralized, safe and even autonomous. That will be more fundamental from public blockchain view as Nebulas.

GitMyCodeUp

The project was submitted at Go Nebulas platform:
https://go.nebulas.io/proposal/454