I think the opposite would happen bc an $EON token wouldn’t have the same function or purpose as $ZEN, and so I don’t think ti would cannibalize it. I think by adding a complementary token that serves other functions that can’t be served by $ZEN would benefit the ecosystem overall.
Obviously if we created a token that did the job we expect of $ZEN and we switched from $ZEN to $EON for key utilities, such as gas, governance, or stake outside of the EON to other parts of the Horizen ecosystem, then I’d see it as cannibalizing value that would otherwise accrue to $ZEN. That’s not at all what’s being contemplated.
I think there’s a ton of unlocked value to EON because it’s lacking the right native token. I think $ZEN should remain the gas of EON, it should also remain one of the collateral assets for forger staking, but I think we have a huge gap and lost opportunity in not creating a token that incorporates all the lessons learned across modern ecosystems in how to drive adoption. My hypothesis is that an $EON token would generate a lot of value for EON and therefore a lot of value to Horizen and $ZEN.
Absolutely! Right now forgers are securing EON and they’re doing it at a big loss; they’re mainly doing it because they have strategic interests in the project and are willing to do it at a loss. That’s not sustainable and so the community passed ZenIP-42206, which repurposes the current Secure Node pool of 10% of mainchain block rewards to subsidize forging on EON. This is a great first step, but insufficient for the long haul as it’s not a particularly large dollar value and it gets cut in half every four years.
Launching an $EON token gives us another token that can reward forgers and therefore build out a more robust and long term network to secure the system. Just like any other token native to a blockchain, a portion of $EON would be allocated to security and some would be distributed to forgers with every block forged.
An $EON token solves this problem in the most efficient way. We could also talk about diverting more of the $ZEN block reward, but already 2/3 of the total $ZEN that will ever exist has been mined and we need what’s left to subsidize security on New Horizen when we switch over to PoS.
Can you provide any examples of another project the size of Horizen that by creating a second token led to massive growth of the ecosystem. I remember OMG creating $baba but that doesnt seem to have worked out very well, but would like to research other examples.
Im not a fan of growth by dilution. A second token will directly effect the demand for $ZEN if its to be used in place of $Zen for anything. We might as well raise the supply of $ZEN instead of creating new token from nothing, just to avoid confusion. Then possibly create somekind of burning mechanism to decrease supply over time. Honestly, I cant see an ecosystem the size of Horizen being able to survive a second token.
Just to clarify, I’m talking about the possibility of an $EON toking adding to security of the EON platform, not being dilutive to $ZEN. Currently, EON forgers need to stake $ZEN and they earn only tx fees in $ZEN since it’s gas on the platform; we’re soon going to add 10% of the $ZEN block reward to subsidize forgers, but what I’m saying here is that we can also add more rewards to forgers. Of course, they’d also have to stake the $EON token in order to earn $EON rewards, but there’s nothing dilutive about that.
I think the eon token itself is positive, just like arbitrum and matic initially incentivized defi protocols like aave to revitalize the ecosystem.
If zen is assumed to be used as the only gas token, I think it will be positive for the growth of zen token in the end to activate the ecosystem by giving incentives.
Providing zen tokens as an incentive is not realistic due to the minting volume, so it seems appropriate to reward with eon tokens.
If you issue EON tokens, do you have both ZEN and EON in mind for staking on the EON network when converting POS?
I think talking about a potential $EON token within the context of how it would be used for incentives is super relevant. It’s realistically the single most important thing we can do for user incentives. We can definitely talk about specific incentive campaigns here, but I don’t see how we get around talking about the biggest thing that can 100x incentives. That said, this definitely isn’t the forum for debating whether to have an $EON token or how it should be implemented…I agree with that sentiment.
It’s probably about time to have a ZenIP Idea thread posted on Discourse so we can get what we know about design and concepts, then debates, into a single thread. I know that a lot of work has been done already to prep the concept, so the thread should be forthcoming.
I’m very happy to see this story coming out, it’s great news, thank you @finpunk
I have one question.
What are the criteria for user incentives.
I think the criteria for the users to be rewarded is that they are on the record, and I think Transaction from Super/Secure Node fits that criteria.
I hope team will also consider incentivizing Node operators who have been supporting Horizen for a long time.