The ‘Deposit to Circulation Ratio’ is as low as it was at the beginning of 2020. On the tenth of January 2020, the DCR was also ~18%, as it is today.
What impact does this have on Deposit Compensation? Will a DAO investor now receive more APR than if the DCR was 45%, as it was in the first half of 2021? Could you make an exemplary comparative calculation?
If the ‘Nominal DAO Compensation’ of the DAO deposits had remained the same, would an investor who has invested 1000 CKB over the same period of time, e.g. six months, receive a higher NDC because the NDC would then be distributed by fewer investors?
Or to put it another way: Is it more favorable for an investor if the DCR is higher or lower? And how does this affect the remuneration of miners? Miners would get less remuneration if DCR was lower, right?
In my opinion, it is the other way around. Since miners and nodes protect the network state, they should get more if less has been locked in the DAO unused. So it should be good times for the miners at the moment!
the issuance rate of the Nervos DAO is not affected by how CKB is used
Here’s an example to demonstrate from RFC0015
“Let’s suppose at the time of a secondary issuance event, 60% of all CK Bytes are used to store state, 35% of all CK Bytes are deposited and locked in the NervosDAO, and 5% of all CK Bytes are kept liquid. Then 60% of the secondary issuance goes to the miners, 35% of the issuance goes to the NervosDAO to be distributed to the locked tokens proportionally. The use of the rest of the secondary issuance - in this example, 5% of the issuance - is determined by the community through the governance mechanism. Before the community can reach agreement, this part of the secondary issuance is going to be burned.”
Check out this page of the explorer for more info CKB Explorer
