Most of the cryptocurrency community views staking primarily as a way to generate additional returns on their assets. For better or worse, exercising governance rights and ensuring the security of blockchain networks like Solana comes second to earning the highest possible APY.
In an exclusive #interview with #Solana Floor, Lisa Tan, founder of Economics Design, discussed the challenges facing Solana's mining ecosystem.
In a world where network members only care about maximizing revenue, how do you encourage stackers to delegate to validators who share their philosophical values? Most network members simply delegate SOLs to validators in exchange for rewards, but in reality, this delegation also increases the validators' share of the network. Ultimately, investment in the network translates into votes, and larger validators gain more influence and control over network management.
One of the most difficult tasks is to explain to validators why their participation is important. Many stakeholders do not realize that not all validators have their own interests at heart. Delegates are so focused on getting the best APY that they often overlook the role validators play in the ecosystem.
Most people, at least the ones I've talked to, are concerned about financial gain. It's not because they're greedy. It's because in a capitalist society, everything is evaluated in terms of financial gain. Not because it's right or wrong, but simply because it's easy to measure.
Tan believes the solution to this problem lies in providing more accessible, data-driven insights into how decisions affect networks. It's not just about APY [annual percentage yield], she says.
As a potential solution, she suggests increased dialogue, forums and tools to understand the long-term impact of business decisions.
I don't think a lot of people realize that voting matters. You might think, 'Why vote, I'm voting to get an APY or to increase my share,' but it's not, it's voting to change fundamental economic security.
Mr.
What other ways are there to measure this?
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