Incognito should promote staking pools as a way to attract investors

Rationale

A certain scale (>= our competitors) is required before we can get mass adoption. How do we get there? Investors create hype, and hype brings more investors, and this process creates scale. This is the force driving Monero, Grin, and the other Privacy Coins - NOT privacy use-cases.

Setting up a vNode requires a minimum of $850 and the time/expertise of setting up a virtual server, and tbh the UX right now is not great. We can lower the barriers for new investors by promoting staking pools. “Buy any amount of PRV, join a staking pool and get X% return.”

How to do it

  1. Collect and publish data on staking pool providers. Investors want to see: (1) historic or guaranteed returns, and (2) each pool’s % share of the total validator network.
  2. Mobilize the current pools and encourage the formation of new ones. For now, we have Constant and Jservers, and there are a couple of others on Discord. Encourage them to share stats about their pools, and publish updates on the ‘staking pool community’
  3. Make posts and videos about how to (1) shield some USDT (2) exchange for PRV (3) deposit to staking service (4) sell rewards for pUSDT and unshield

Results

  • This is the most attractive option for an investor to join Incognito. Maybe after a couple of months they set up their own vNode, but they will test the staking pool first with a small amount, like $100.
  • Most investors in Privacy Coins are used to staking pools because other Privacy Coins are in PoW networks (like Monero), so it’s an arrangement they’re already familiar with.
  • Of course, we still want to promote that PoS makes it easy for anyone to operate their own vNode. We can also publish charts showing ‘staking pool dominance’, which is a trending topic right now, and it will show that we have a large number of independent validators, which sets us apart from others.
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Short Term

It will obviously make it easier for people to join the project, and it will create some awareness.

Long Term

It will not do much for decentralization. I am well aware people think we are not a decentralized project already, but we are working on getting there.
For PoW chains it makes way more sense to bundle forces, for PoS it is just bundling money. There are no forces at play.

Hypothetically

Correct me if I am wrong, but a pool is basically one person hosting multiple vNodes. Doesn’t that make the network weaker instead of stronger?

Don’t get me wrong. I am not against anything that is already working, but should it be promoted? What would the network look like when everyone who hosts a vNode now, starts hosting a pool?

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there are enough crypto projects out there creating a massive amount of hype - every single day, in the last few years - already. as a young little project, it is impossible for incognito to help the crypto community to make hype even hyper.

let’s focus on doing what other crypto projects are completely ignoring: finding real-world use cases. let’s make incognito something people actually use rather than speculate on.

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