Old Cat's thoughts on Proposition 7

Guanyun (@guanyun) proposed the Seventh Proposal of Appreciating the Citizen's Republic on 06/01/2021. The theme of the proposal is to increase the interest rate of delegation and modify the mechanism so that the value of the interest rate is adjusted according to the delegation rate. According to the seventh proposal, the interest rate range is 7-20% (currently fixed at 2%). When the commission rate is lower than the Goal Bonded value, the interest rate will increase according to the rate of Inflation Rate Change until it reaches the upper limit of the interest rate ( That is, 20%), and when the commission rate is higher than the Goal Bonded value, the interest rate will drop according to the rate of Inflation Rate Change until it reaches the lower limit of the interest rate, which is 7%. Under Proposition 7, the Goal Bonded value is 67%, while the Inflation Rate Change value is 25% per year. Since this proposal is a parameter change, after the proposal is passed, the system will immediately adjust it according to the seventh proposal.

The proposal has gained sufficient support on January 8 to start voting immediately, and voting will close on January 22 at the latest. As of now (afternoon of 9/1/2021), a total of four certifiers have voted, accounting for 28.3% of all votes, and the response has been overwhelming. All four certifiers who have voted voted yes.

This proposal is an extension of the fifth and sixth proposals. The biggest goal is to continue to increase the incentives so that the commission rate can reach 67% of the safety target, or at least further increase the commission rate. According to the semi-monthly development report of Likecoin on 23/11/2020, there was a good increase (about 16.8%) in the number of commissions within two weeks. The increase should be related to the increase in the interest rate from 1% to 2% after the fifth proposal. I believe that today This larger adjustment should attract more commissions. In addition, the seventh proposal can also make the interest rate more flexible and dynamically adjusted according to the commission rate. It is hoped that Likecoin can be adjusted more automatically, reducing human intervention and saving human resources.

The substantial increase in the interest rate this time will actually increase the income of Likecoin holders with and without delegation. With the development and value of Likecoin, Likecoin holders really have to start managing their delegations.

The old cat also refers to the holders who have not moved Likecoin from the ERC-20 chain. Hopefully, the big interest rate increase this time around will make them do it.

Regarding voting intentions, such as the purpose expressed by Lao Mao before, I feel it is my responsibility to express my intention to everyone, especially my noble client, before voting, and I welcome the exchange of opinions. For the seventh motion, I intend to vote in favour. I budget to vote next Monday. If there is any dissent, please do so before voting.

Thanks!