Cameron Armstrong pfp
Cameron Armstrong
@cameron
Choosing violence today: Can anyone explain to me what value there is in staking an app token other than "paying you not to sell this token"? (NOT talking about a protocol using staked tokens for validation collateral, an honest to god APP token - why is staking useful in a "better for users and the app" sense)
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✳️ dcposch on daimo pfp
✳️ dcposch on daimo
@dcposch.eth
The only purpose for staking is if you are doing something that might result in slashing. Everything else is fake staking. See the infamous SBF/Matt Levine “money in a box” interview
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Corbin Page pfp
Corbin Page
@corbin.eth
It's just a tool in your tokenomics toolkit. Yes, it's partly not to sell. Also: * Add slashing conditions to economically disincentivize behavior * Can be used to insure protocol (Aave) * Reduces circulating supply * Increase TVL (not saying this is good) * Can be used to increase liquidity
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Alok Vasudev pfp
Alok Vasudev
@alok
devil's advocate: what's wrong with paying users to not sell the token? if there's value to the network overall in lower token velocity, couldn't it be worth an issuance cost to the network?
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Chun-Li pfp
Chun-Li
@0xchunli.eth
I was just having this conversation, some apps really don’t need a token.
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danny iskandar pfp
danny iskandar
@daniskandar
See who is the long term player vs not
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Bill Ford pfp
Bill Ford
@mcdermittmarvel
We @banklessdao use Time Locked bank (staking) and I find it useful and valuable as a tool of classification. A status value.
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logonaut.eth 🎩🍖↑🔄 pfp
logonaut.eth 🎩🍖↑🔄
@logonaut.eth
Right? I keep staking the U.S. Gov App's $DOLLAR token in my bank and I have no idea why. What am I even getting out of this?
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Venkatesh Rao ☀️ pfp
Venkatesh Rao ☀️
@vgr
Sounds like a "creative" implementation of liquidation preferences or "preferred shares"
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rileybeans pfp
rileybeans
@rileybeans
I can't imagine myself ever staking tbh it simply isn't a feature that appeals to me.
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Tayyab - d/acc pfp
Tayyab - d/acc
@tayyab
You are correct that’s the only reason.
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Sean Wince 🎩 pfp
Sean Wince 🎩
@seanwince
Staking LP tokens in a farm also falls under this umbrella? It's not really validating anything AFAICT just paying you to not exit your position
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m_j_r pfp
m_j_r
@m-j-r.eth
adding to the slashing mechanic, staking should be pluralistic. the staker is incentivized in some way to exchange fungible X for f(X), but if the functor of X is both centralized & probabilistic, then there's some unknown opportunity cost. can see this as ERC-4626 (staking standard) respective to pooltogether/frax.
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maurelian pfp
maurelian
@maurelian.eth
o god, the violence, I can't handle it
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Ben pfp
Ben
@benersing
No. That’s all the value. Anything more being said is marketing / vision, not current reality.
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artlu 🎩 pfp
artlu 🎩
@artlu
1/ sounds similar to investor lockups - makes it more expensive to dis-align 2/ gives project oppty to slash, e.g., FT tokens if you use competitors, which maybe(?) helps the more loyal users in some sense
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notdevin pfp
notdevin
@notdevin.eth
I can see use cases when the staking is done in a $1 type stable coin, used as liquidity in the network, and paid for its usage. You must be creating a value though, wash trading doesn’t count, a real economy or marketplace
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JA Westenberg pfp
JA Westenberg
@joanwestenberg.eth
There is none. It's pure ponzinomics.
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Connor McCormick ☀️ pfp
Connor McCormick ☀️
@nor
the only context where it's game theoretically meaningful is if there is risk of slashing. yield in that context is just to account for time value of money, which is pertinent if the time horizon of staking is long
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vrypan |--o--| pfp
vrypan |--o--|
@vrypan.eth
In general, you’re right. But there are cases it makes sense. For example staking as a proof of long term commitment/aligned incentives to get the right to vote.
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