Hi. Would someone explain me why was proposed to change the staking reward from 1 Clam t o10 Clam?
Give me the good and bads.
Thanx.
Well I didn't make the petition, but it would dilute the supply which would benefit current owners of the coin and hurt future diggers. If you have 10k clams today, you will be staking 10x more clams. If you have 10k undug clams that you will discover and dig up next year, then your supply has not rising at all while the current owners now have more, meaning your value of clams should be less comparably.
This could have the effect of lowering the price of clams as there would be more supply, however stakeholders would have more clam so that should offset any losses in price. Also, the loss in value to future diggers would help offset some of the price/supply issues caused by the increased staking.
Not sure how this would work.. even though the supply is bigger any future whale diggers would be able to stake 10x as many coins
webchris is right. The one-time (?) 10x increase makes staking
now much more valuable than staking
later, because the amount of the stake reward is fixed and is divided among all staking coins. So as the money supply (and presumably the number of coins being staked) rapidly increases at about 30% per month under this proposal, the rate of return from staking decreases accordingly.
At 10x the rate we would have >5 million coins being staked per year and the original 15 million free CLAMs will decrease in value very quickly (as will any CLAMs that are not being staked).
EDIT: Previously miscalculated the 10x rate as 50 million coins per year; it is only 5 million.