Background and Summary
This proposal seeks to enhance the attractiveness of staking on the CQT Network by adjusting two key parameters: the reward emission rate and the cooldown period. The primary objective is to make staking more appealing to potential delegators, which, in turn, will contribute to the network’s decentralization.
Reward Emission Rate
This proposal aims to increase the reward emission rate of the Block Specimen Producer staking contract so that a healthy APR to delegates can be sustained as new Network Operators join. The current APR is ~8.5% and the proposed long-term target is 12%. Specifically, the CQT emission rate per session is proposed to be increased from 156 to 182.
The following chart shows the CQT emitted as rewards to date; in total, 13.3M CQT has been emitted over 16 months:
From the CQT Allocation table (link:Covalent Query Token ($CQT) Economics | Covalent), 80M CQT is allocated for staking. Hence, 66.7M CQT remains in the staking budget for the next 32 months, which is healthy and can support an increased reward rate.
Meria and Luganodes joined as BSPs in August and September 2023, and we understand from CQT Foundation that more are expected to join the CQT Network before the end of 2023. It is, therefore, paramount that the reward emission rate is increased, and by doing so, the CQT Network can welcome more operators to join the network during its initial phases.
Delegator Cooldown Period
The second part of this proposal involves reducing the Delegator Cooldown Period from 28 days to 14 days. This change aims to give delegators quicker access to their staked assets, making staking on the network more flexible and enticing.
Mission and Value Alignment
The CQT Network is committed to establishing a robust and decentralized infrastructure for its protocol. Critical to this is the Initial set of Network Operators, who currently operate as Block Specimen Producers and Refiners.
It is essential that operators are rewarded for their operations in the initial stages of the network.
Furthermore, delegates should have increased flexibility with their staked assets.
Timeline
- Publish in Discourse Forum on 14/09/2023
- Snapshot vote to take place on 19/09/2023 and close on 22/09/2023
- If passed, the changes will be implemented the week of 25/09/2023
Proposal Details
- CQT emission rate per block specimen session be increased from 156 to 182
- Reduce the Delegator Cooldown Period from 28 to 14 days.
Poll
Please cast your vote on the following proposal to alter the CQT Network Staking Parameters:
Should the CQT Network increase the emission rate and reduce the cooldown period?
- Yes, I support the proposal to increase the reward emission rate from 156 to 182 and reduce the cooldown period from 28 to 14 days.
- No, I do not support the proposal to increase the reward emission rate from 156 to 182 and reduce the cooldown period from 28 to 14 days.
Please cast your vote by the 17th of September. Your input is valuable in shaping the future of the CQT Network’s decentralized infrastructure.