The original Chinese version is available at: https://community.nebulas.io/d/799-10-26
Conference Number: NIP-CN-20201026
Meeting time: Beijing Time October 26, 2020 14:00 - 15:00
Participants: 17 members participated, including Avigo, Ben, Burcom (KKL), Big White (Chained), Leec (NAX.one), Chained Members, Lin Weimin (CVP237), Miao (MINT), NAS node, Ravin (MRH2), Qie Jianjun (Chained), Huang Haozhi; Members of the Nebulas Technical Committee: Iris, Larry, Pu;Members of the Nebulas Foundation: Becky Lu and founder Hitters Xu.
Objectives of the meeting: The 7th PoD Governance Vote, on October 26, included two proposals on ecological incentives that needed to be discussed:
- NIP564: Incentive proposal for swap.nextdao
- NIP560: DIP Developer Incentive Protocol 2.0
- Incentive proposal for swap.nextdao
Proposal overview: After the mainnet release of swap.nextdao is live, the Nebulas Foundation proposes the use of funds generated from two foundation operated nodes to be used as incentives for swap.nextdao. See: NIP564 for more information.
To guarantee incentives for swap and link participants, two nodes would be placed in the top 6 nodes in order to guarantee incentives for DeFi participants. The two nodes governance incentives will cover basic expenditures such as server costs, and, like other foundation nodes (except for the technology committee node), will select abstain for all proposals during PoD governance cycles; reducing the impact on the results.
Why motivate Swap, not Link?
Becky: Because Link is the basic process of introducing token into the Nebulas ecosystem, like USDT conversion to nUSDT. While Swap provides liquidity to the ecosystem. We also want community members to be more involved in the ecosystem, rather than going back and forth between cross-chain assets..
Huang Haozhi: What are the advantages and disadvantages of this incentive plan?
Hitters: This is a very good question. We should keep up with the times. Building Link and Swap is for the AMM ecosystem while nextDAO helps to introduce external assets. The Nebulas blockchain should provide more of a foundation for us to build upon where further development can be achieved. Community members are welcome to join.
Ben: The elimination of the last nodes.
Becky: Some of the nodes strive to be at the top of the list while many nodes rank behind, but the governance benefits (about 800NAS each time) are equal, and the bottom ranked nodes also have the benefit of receiving enough funds to to pay for server costs and more.
Ben, NAS node, Avigators: The Swap incentive node is in the top six, which means there will be two fewer community nodes in the top six, will it be too concentrated, will it be a blow to the enthusiasm of the head node?
Becky: Currently, the top 20 nodes have a relatively stable and substantial influx of benefits.
Hitters: If needed, the first six guaranteed blocks can be removed. You can make proposals for optimization. Initially, nodes were encouraged to stay stable for a long period of time which has occurred. The rules can be adjusted as the situation changes.
Ravin: Will Swap be motivated to cause loss to community members? Do you need to sign a gambling agreement?
Becky: Users can assign and choose to participate in higher-yielding activities. There may not be enough people who will participate in Swap even though the benefits are good, there is a possibility that there are better benefits to participating in the node.
KKL: What happened to the last Swap buyback of nax? Can you buy back NAX at a fee and add it to the votes of the two nodes?
Iris: The proposal, NIP548, will not be formally implemented until Swap is online. It’s still a planned project. In addition, although we estimate, the Swap fee is a value that will change with the value of the Swap, and the Swap fee will be very low (initially). We want to give a clearer incentive early.
Avigo: In the early stages, if the pool was small, would the foundation be putting money into the pool?
Hitters: No. The foundation will not interfere with the ecosystem of the community.
Ravin: Will the adopted proposal be implemented?
Hitters: The proposals that are passed will be implemented, which is the power of community governance. However, because of the development cycle issue, not all proposals will be executed immediately. Proposals for Swap fees, for example will have to wait.
Iris: You can click here to see all the proposals that have been approved and their implementation.
2. DIP Developer Incentive Protocol 2.0
This proposal was launched by the overseas Nebulas community. The proposal is to give 75% of gas fees to the contract developers as revenue. Similar to the DIP program, it provides continued, native incentives for Nebulas developers rather than temporary operations like 2018. See: NIP560
Ravin: Does this mean that the node’s earnings will fall further?
Becky: Node block generation earnings are still stable and large. Gas fee is dependent on the network activity and is not a fixed income. As far as the situation is concerned, the effect on the node’s overall incentive is negligible.
NAS node: Incentives look small, so how do you attract developers?
Becky: This is the question of this proposal. This developer incentive provides only minimal incentive. If a developer wants to develop DApp and so on, their product has to be profitable on its own, rather than a DIP incentive that can yield a lot of money.
Ravin: How to Solve the Problem of bad actors? How do you judge whether to give incentives? Manual review?
Iris: The proposal is not a marketing campaign, so it’s not like the 2018 incentive plan, it’s not manually reviewed at all. The starting point of this proposal is to hope that more good DApp will be built on Nebulas. If the developer builds a DApp (which requires real products to be on line), it would be necessary for it to build its own popularity. It’s better than nothing. Of course, people can vote their own opinion. If there is a better proposal, it’s welcome.
Becky: The proposal is a good starting point, but the details are simple. How to judge whether incentives are created requires deep optimization.
Hitters: Nebulas is friendly to developers.
3. About the Progress of DeFi-related Products
NAS node: Does the official development resources guarantee the normal development progress?
Iris: I can guarantee it. The main Nebulas network is special; as you can refer to the previous monthly report it’s not simply a copy of Ethereum’s Uniswap, but to make some unique features. The Link cross-link mechanism needs to be developed on both Nebulas and Ethereum to solve the problem of stable currency, introduce stable currency, and let NAS go in both directions. In addition, the original Chrome plug-in wallet, Explorer and other matching tools of Nebulas must also be upgraded. In addition, because of asset security, public testing and auditing are required; they cannot go live without a proper audit. Public testing in the last two weeks and the end of the PoD governance vote on Oct. 30 will lead to the conclusion that the Swap incentive plan can be passed and can be synchronized.
NAS node: Is there a need to improve the frequency and ways in which communities are being developed openly? Delay’s are acceptable but the community needs to know.
Iris: Yes, this is something we need to improve. Unlike products that are online and open-source, fix bugs and any minor changes are immediately available on Github. During the transition period, communication should be strengthened, such as the email reminder service that passed the previous vote, the phased development progress report, etc., to be updated in a timely manner.
NAS node: Deadlines should be officially self-reported.
Iris: Yes. But when it comes to assets, it’s better to be slower than having something going wrong.
End of meeting