Piconbello’s Stand on MIP1
Hello Mina community, this report will go over our processes regarding the Mina Improvement Proposal 1(MIP1), submitted by Gareth Davies, a well respected community member of Mina. Please check the proposal by yourself as well, since Gareth provides great detail and explanation for the rationale behind it.
First, let’s go over some background knowledge. In the Mina ecosystem, there are two types of blocks, resulting in two types of rewards. A regular block gives 720 Mina as a reward and a supercharged block gives 1440 Mina as a reward. A validator can find both types of blocks if their staking ledger includes both unlocked and locked Mina, locked Mina coming from mainly the seed investors, private investors and Genesis rewards that participated in the testnet phase.
The blocks essentially add to the supply, just like any blockchain project. When Mina was first introduced, this concept of supercharged rewards was put in place to encourage Mina holders to stake their assets and provide an incentive to secure the network. According to the initial design, this concept was supposed to be removed as well, making a single block type and lowering the overall emission. Hence, this proposal aligns itself with the initial token economics as well, the only difference being different mathematics in the background.
As Piconbello, we strongly believe in the importance of controlled emissions for blockchains. Emissions should exist in a balance, such that it incentives validators enough to provide their services and decentralize the overall network, as well as not cause high inflation for the investors. Overall supply increase for the time being mainly comes from unlocking of the locked Mina, hence the supply will still increase, yet it will be slowed down drastically with the help of this proposal.
For the stakers, the overall APR that you will be getting will be reduced. Yet we believe this might be a healthier approach for your investment since you were getting non-planned increased rewards before and now the speed of increase in supply will be reduced, essentially lowering the inflation overall, which will help the ecosystem overall.
Since this is a governance proposal, it includes all the ideas in a decentralized sense, so this proposal might not be accepted and put into action. Yet, as Piconbello, we will support this proposal. Participation for all of our current stakers will be handled by us, we will vote for approval for the entire community that has been staking to us. If you don’t want such a proposal to be implemented, you need to find a validator that disagrees with the proposal just like you and stake it to that validator, so that your view is represented. Normally, if you are not on the same page as your validator for a governance proposal, you could change your vote by voting yourself for other blockchains. Yet, this has not been implemented yet for Mina, we hope it will be implemented to ensure the participation of all beliefs without changing the validator.
We are quite excited about governance proposals coming to Mina, essentially making the community in charge of the future of the project. We have always been the strong defenders of decentralization and community, hence this proposal will only be the start of a greater future for Mina, in terms of its decentralization as well as democracy in implementing features, hence we would like to invite you to our Telegram channel, to participate in the poll for the proposal, as well as participate in the discussion.
Happy new year from Piconbello!
