Proposal to amend SWM staking rate card for low value assets



I would like to invite discussion into a draft proposal to amend the SWM staking rate card for issuing tokens , specifically with relation to low-value and zero-value assets.

The idea is founded from the desire to foster an environment that encourages and promotes innovation in the usage of security tokens.

Current Model

The current staking model requires a minimum stake of $2,500, to be deposited in SWM tokens, for assets valued up to USD 500,000. Assets with a higher value require a stake according to the current rate card. The amount of SWM required to be staked is calculated using a 7-day average price for SWM on IDEX.

I am increasingly of the opinion that the stake required is reasonable when tokenizing high-valued assets, for lower-valued assets, I would argue the minimum of $2,500 is prohibitive. Further, we are still so early in the evolution of tokenization that I think we need to pull out all the stops to get real use cases out there in the wild, regardless of the value of the asset being tokenized.

Proposed Model

My proposal is to amend the staking rates to allow this, as follows:

  • Amend the required stake for assets with NAV less than USD$10,000 to a fixed rate of 1 SWM
  • Amend the required stake for assets with NAV USD$10,000 - $500,000 to 0.5% of NAV
  • Stake for assets with NAV over $500k remain as they are per the current rate card.

Potential Benefits

The intended benefits of this amendment would be:

  • Allowing the tokenization of low-value or zero-value assets to see what use cases appear. I see this as part of proving the concept of tokenization. I would love Swarm to take a lead here and provide a space for the creative usage of the technology in ways cannot yet foresee.
  • 1 SWM stake is a negligible amount, but still requires some knowledge and interaction with the project, and provides some protection against users spamming the network.
  • The dynamic of staking/unstaking will keep momentum/velocity of the SWM token high.
  • This change has absolutely no effect on the stake rates " for high-valued assets, which are calculated in USD (not SWM).

Please Discuss

Interested in your feedback and discussion. Specificially,

  • Do you support the spirit of this amendment?
  • Do you support the suggested staking rates? (some have suggested the stake for assets less than USD$10,000 should be 100 SWM.
  • Do you support the theory that this amendment will result in greater usage of the Swarm infrastructure.

Many thanks,
Sam Stone.