Random thought: What if I can offer better rate than Nervos DAO and rent space for profit?


#1

The design of Nervos DAO collect secondary issuance and compensate to locked CKB is like rewarding based on an interest since it is a constant. The rent for CKB is based on market. My thought would be what if I can offer a better rate than secondary issuance and gather all unused CKB and ask for a better price to rent out? I am not sure if it works or is it a good or bad or natural thing the the ecosystem?
Correct me if I am wrong on any of the point above. Thanks!


#2

I think you make a valid point, with the smart contract system, you can definitely issue your own token and your custom logic. If for some reason your services offer better returns, then CKB holders will definitely want to work with you instead of the NervosDAO. In the Economics paper, the authors only hypothesis that native token will likely be the most used form of token.


#3

Of course you can do that, every one can do that.

Nervos DAO is not designed as a economic system, it is only designed to make those CKB in Nervos DAO can fight against inflation.

When the demand of CKB raises, than the rate would raise, and those people who storage CKB in Nervos DAO, they will take out those CKB and put into the rental market.

But when the demand of CKB declines, more people would lock their CKB in Nervos DAO.

In Nervos the rental market is open to anyone.


#4

Then I can see this happening or works like MakerDAO as supplement to the system since if rent goes high then I will lock into this product to get a better rate of return and hosts of such product can also benefit from it for the risk they take.


#5

NervosDAO is designed to provide anti-inflationary guarantees on the protocol level, regardless of rental demand, transaction cost, market efficiency etc. It’s a near care-free way for long term token holders to protect their shares of the overall network. You can do it with your coins in your cold wallet.

Others are welcome to supplement it to provide market driven investment/lending solutions. They’ll subject to the forces of demand/supply and require users to manage their coins more actively.