Greetings from the ICON Team,
We have continued to refine the governance and incentive structure of the ICON Network outlined in the yellow paper published last December. After consideration of possible attack vectors, P-Rep responsibilities, and incentive alignment we have made several enhancements to the original design. A high-level overview of the updates can be found below, followed by the granular details in a bulleted list. Additionally, we share a few more details on the Pre-Voting period beginning in August.
IISS Update Overview
The update includes limitations on the power of P-Reps, as we felt the initial design gave P-Reps too much authority. Rewards received by DApps (i_dapp), EEPs (i_eep) and rewards received by voting ICONists (r_eep, r_dapp, and r_rep) are no longer decided by P-Reps. None of these updates will affect the expected annual issuance amount. We also added a variable un-staking period based on the percentage of the network staked.
■ Delegation Annual Reward Rate for Voters: It is now a function of the percentage of the network delegated.
Even if the DBP and EEP processes are not developed upon the launch of delegation, ICONists will still receive r_eep and r_dapp for voting for a P-Rep.
■ Un-staking period: The un-staking period will also be a function of the percentage of the network staked
■ Price (P) variable has been removed. All variables will be entered in terms of ICX
■ Maximum Issuance Rate: This has been changed from 15% to 20% based on stress-test scenarios to ensure security and aligned incentives given extreme market conditions.
■ i_eep & i_dapp: Hard-coded as 25% of i_rep
■ Minimum i_rep: Hard-coded as 10,000 ICX
Pre-Voting Period Details (August 2019)
■ The ICON Foundation has decided on a pool of ~3 million ICX to be released during the course of the pre-voting period in August
■ Based on a 30% delegation rate assumption, the average ICONist can expect a 15.81% (5.27% * 3) annualized reward during the pre-voting period
The ICON Team will continue to make updates leading up to Pre-Voting in August. A few items still under consideration include the details of the penalty system, the process for submitting and approving an EEP, and the process for approving a DApp to be a part of the DBP. We look forward to sharing more details with the community once finalized.
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