I know Algofi run nodes, so why not reward users with BANK if they stake their ALGO online with them? This way we can indirectly incentivize node participation without doing it with ALGO.
I like the fact that Algofi runs nodes, it makes sense to help secure the network that your dapp is running on. I think all dapps should run nodes. Especially as devs around the world build dapps on top of Algorand
disclamer: I’m running my own node but use a part key from my Algofi Vault
I love this idea. I think anyone using a part key from their vault is going to be a stickier user given the extra costs of switching. Giving more BANK to long term users always seems like a good play in terms of the health of the DAO.
i think directly incentivizing people to stake to one node sounds more like the try to centralize it.
maybe sth like a list of nodes run by community members and approved by the DAO could be used instead and people who use their vault to “stake” to them could be rewarded with higher BANK emissions on their vaulted ALGOs
I like the spirit of this proposal, but personally I’m not a fan of Algofi using resources in this way. Algofi needs to stick to it’s core competency as a defi platform and incentivize functions that increase it’s utility and usage.
Yes, an argument could be made that the underlying infra of Algorand needs to be strong, so let’s help incentivize that. But, I think there are plenty of resources (Foundation) to incentivize the underlying infra.
Just my two cents, happy to hear what others think.
I see your point. The thing is Silvio is against incentivizing node running, so, I think it will be quite a task to incentivize running a node with ALGO.
Algofi could do a trial and see how receptive it is. If people dont engage, then scratch the idea. Algofi could just pay out a small APY, maybe like 2%-3%. nothing super high, where it would emit too many too quickly, sucking up the resources. what do you think?
Silvio and the Foundation can disagree. I’ve also not heard Silvio talk about this recently so maybe he changed his mind. Either way, I’m personally not convinced nodes need incentive. I will admit that I’m not as strongly against it as a used to be though.
So I’m going to disagree with myself a bit now, but bear with me.
A rewording of your measure would be better imo. If you use the Vault and your vault is participating in consensus there is a once per day or week distribution of BANK. This BANK would have nothing to do with the amount of ALGO you use to participate, but be a small reward for taking the time to setup a node (or find someone else who will let you use their node). May need to figure out how to keep people from gaming it though and only distribute to the largest ALGO holder on that node or something?
I don’t think Algofi should be in the business of running nodes though.
Algofi already has BANK incentives for ppl depositing in vault. I do agree that the APY could be slightly higher provided you participate in consensus with your vault (or slightly lower if you don’t participate in consensus)