Monetary Policy Discussion: Generation 1021 (August 5 - August 19 2023)

This topic has been created for the Eco Trustees to discuss the monetary policy that will be enacted on Saturday, August 19th. As always, the policy will be in effect for two weeks — this is for Generation 1021, which runs from August 5 - August 19 .

Trustees are encouraged to post via replies under this topic to:

  • Discuss what policy they have proposed and/or are voting for, and why
  • Engage in public dialogue/debate with other Trustees

Community discussion will occur in the #trustee-community channel on Discord.

This post will be updated with the end result once the winning proposal has been enacted on August 18.

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Same as last cycle - I will support the proposal with the highest APR, we definitely need to move to 18-24% territory to study the results and experiment while we are early.
I will rank all other proposals by APR from highest to lowest.

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We need a set of high APR shots to see the responses under various gas conditions. The mechanism to maintain the purchasing power stability for ECO around the clock is an open question. If allowing the users to opt in to contribute to maintaining said stability is a viable component of the mechanism — ultimately, it’s all about allowing the users to earn rewards without locking their funds vs. staking — one of the sources of rewards offered to them for doing so is the percentage of the stakers’ APR. Given some conditions, what’s the critical value of APR where the stakers won’t be happy to give such users any fraction of their reward despite the stable purchasing power? No doubt, there won’t be easy answers but the first step towards figuring sustainable things out should be about understanding basic things, for instance: what’s the minimum value of APR such that gets at least, say, five percent of non-big wallets to stake their ECO under the current conditions (which is btw not a trivial condition given the Beam wallet roll-out as an endogenous shock with its impact on the dynamics)?

I’ve submitted a (24% | 30d) monetary policy to support the push for high APR scenarios (credit to PureMacro). We need a more diverse range of 18-30% APR proposals to consolidate support for experimental policies (similar to the multiple 4-8% APR proposals we have now).

Bismarck submitted a small random inflation proposal this week: 0.002% (even though the interface rounds this down to 0–this is a bug which is being worked on) for 1000 users. It’s little, but it’s for proof of concept. I know conversation has mostly converged around high APR since the launch of Beam, so if it proves unpopular it’s always something we can revisit later.

As @dmititup pointed out, in the last generation the currency endured the shock of the Beam wallet rollout. Given that event, I submitted a proposal for a status quo policy — identical to last cycle: 7% APR for 120 days — and am voting for it as the my top choice, and then ranking the rest of the proposals by how close they are to the status quo.

In other generations I have been in very much in favour of experiments — and, conceptually, I love those proposed around higher APR proposals & random inflation this cycle — but will abstain from ranking those highly again until things are more stable in the ecosystem.

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I’m with Mike on this one. It’s really the only thing we haven’t tried yet.