We applaud B1’s effort of the continuous study and improvement of EOS blockchain, while collecting feedback and opinions from the block producers. Our team discussed this proposal and formed the following opinions:
1. Staking Rewards for Voters
Delegation of stake is an important attribute of DPoS. Voter is supposed to obtain staking rewards directly from the system. This definitely increases the alignment between the economic success of the network and the staking voters. The voter sacrifices the liquidity of the tokens for the system and deserves a certain reward. Understanding the need for staking voters to obtain rewards, we launched Newpool to meet the requirement of the market 2 years ago. Now we are very pleased the “direct reward for staking voter” has been emphasized and mentioned in this proposal. From the perspective of implementation, we recommend EOS Nation’s proposal to transfer all the inflation rewards to REX for distribution, because it not only makes few changes to the existing network , and can achieve the purpose of directly incentive to staking voters.
2. Withdrawal limitations
As an innovative blockchain, EOS must have the freedom of transfer of value. Withdrawal limitations do not seem to have any substantial effect, so we do not recommend limitations on withdrawals.
3. Block Producer Rewards
The costs paid by the top 21 block producers and the standby producers is different, no matter from the expenditure of the server or the investment in daily maintenance. In actual operation, the standby block producer does not actually need to have a server, nor does it need to invest too much time for technical engineers to maintain the node. If Bpay is completely cancelled, block producer will choose not to produce blocks from an economic point of view, and turn to be a standby block producer, because this mechanism encourages not to produce blocks economically. Being a standby block producers can save server and maintenance costs. This is contrary to the requirement of the mainnet to maintain stable production of blocks. We think that retaining Bpay rewards or appropriately reducing Bpay, and then introducing penalty mechanism to restrict underperforming block producers, so that there are rewards and penalties, block producers will tend to actively produce blocks and maintain good performance.
4. Penalty to Block Producers who underperform or fail to produce blocks
Maintaining the stability of the block production is one of the main tasks of BP. If BP fails to produce blocks at the specified time or performs poorly, then it has not fulfilled its due obligations, and there should be a penalty mechanism to encourage BP to improve its performance.
5. Token-holders vote for at least 21 block producer candidates or proxy their vote to a registered proxy
Voters should have the right to choose who to vote. They can directly vote for the block producers they choose, or they can delegate voting to a trusted proxy. The system shall give voters full freedom of choice.