protocol
[Idea Review]: Filecoin pledge token
Request Summary
See https://www.notion.so/pl-strflt/Filecoin-pledge-token-8855f4a974ec4b8da306e8667f4682aa
There is a circular dependency between pledge amounts and circulating supply which causes a destabilising dynamic. When the rate of change of token supply is far from zero, changing incentives for onboarding push it yet further from zero. In particular, when net onboarding is low or negative, the return on pledge of committing/extending sectors is decreasing, further discouraging onboarding.
Instead of pledging FIL, storage providers can be required to pledge a new token, PFIL, at the same rate as the current pledge formula. The network permits a 1:1 conversion of FIL to PFIL, but not the other way round. The FIL for sector pledging is thus permanently allocated to pledge. When a sector expires or is terminated, PFIL tokens are returned to the provider. These PFIL tokens can be used to pledge or extend a new sector, but cannot be converted back to FIL. Unlocked PFIL can be transferred freely, traded, etc.
Audience / Consumer for this Review
Core Developers, Storage Providers
Timeframe
No Rush
Rationale
This is an idea that should be in your mix of solution pieces. It's not clear that it's good in its current form, and is limited in when it could be applied. But has potential to stabilise circulating supply.
Desired Deliverables
No response
Additional Information
No response
Contact Details (if Private Response Requested)
No response
Hi @anorth, I've made a brief analysis on the pledge token mechanism, and commented it on your notion page. As I say there, my feelings are mixed at the moment, maybe worth exploring more. Let me know if I got something wrong of the original proposal, or if you have any other particular question about it!
Thanks! Nice work. I concur that a better feel for in which situations the positive feedback dynamic exists, and when the share-of-power overtakes it, would be a next step to understanding the possible relevance of this idea.