CIP-69 proposes to reduce the minPoolCost parameter to 0. You can find enough good arguments for and against. Let’s see what a possible reduction of this parameter to 0 would mean and what it should be compensated with.
TLDR:
- Pool operators can set 3 parameters that affect rewards. There are 2 protocol parameters that have a major effect on the rewards.
- We should focus mainly on the quality of network security and the reward system is a tool to achieve it. Economic incentives influence the behaviour of actors and their behaviour must not compromise network security.
- Operating a pool must remain an attractive and profitable business.
- If we allowed pools to be operated without getting at least a minimal reward, we might help smaller and upstart pools, but we risk a race to the bottom.
- The desirability of the pool can currently be achieved by the popularity of the pool operator or by attractive parameter settings.
- It is possible to set minPoolCost to 0, but we should introduce the minMargin parameter and set it to at least 2%.
This article was prepared by Cardanians with support from Cexplorer.
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