Staking model and its limits

staking
(Lhg) #1

Hi.

I have a long-term concern. According to the current staking model it’s only possible to stake entire amounts of NEX (not fractions), so maximum 50000000 people (the number can be much lower ~ 100000) can receive income from Nash, which would put a limit to the number of investors. In addition, another limit could occur due to the NEX price, IF the token reaches a very high value (e.g. $500) not everyone could invest (stake), which goes against Nash’s goal: to distribute finance for everyone.

I know that the reason to allow only round numbers is to avoid issues when calculating dividends (see picture) and that the Nash team will be able to solve them in the future, but I wanted to give my opinion about this.

Thank you.
Screenshot%20from%202019-02-04%2018-00-00

1 Like

(Alex) #2

I feel you. Especially the reasoning that it would go agains Nash goals: distributing finance for everyone.

In regular stocks you can also only buy non fragmented shares.
To solve this there are stock splits I think. (I am not stock expert!) However I am not sure if this would work with the contract. Maybe we should add a splitting feature in the contract to make it future proof. (just a thought. Probably other soulutions too. I wonder what regulators think about this.)

Curious to hear what others think.

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(FCC) #3

Hi @lhg if you use one of the calculators you will see that 1 NEX will still be quite accessible for a good while, but regardless of that this limits the number of accounts not people staking. In the long-term I believe people will probably invest in Indexes or funds that have NEX in their portfolio instead of directly investing, so multiplying the access.

In the future if NEX hits >$200 we can think on creative solutions like a token split to 100M.

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(Bunder) #4

Looking forward to the tokensplit in the year 2020 :grimacing:

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(Ouakiki) #5

Hello, what “token split” means?
Thanks

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(Hatertots) #6

@OUAKIKI it means they increase the amount of tokens everyone has. Since the current total supply is 50M an increase to 100M would mean every person that has 1 NEX would then be given 1 additional NEX making their total 2 NEX. If NEX at the time was $200 each, then with doubling the supply by splitting it, NEX would then be worth $100 each. You would still have the same total worth of NEX after the split, but each token would be worth less and have more supply thus making it more accessible to more people.

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(Ouakiki) #7

Thank you very much for you clear answer :wink: very useful

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(Mao Mao) #8

good explanation!

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