Lower Fees for staking MIR? (Discussion)

There are several reasons to implement lower fees for staking MIR. Fundamentally, the platform full stop requires MIR to be a valuable token to fund the staking, LP, minting etc of the platform.

Currently, the only reason to buy MIR is for governance and to speculate on the price of MIR.

I’m going to outline why I believe lowering the fees for MIR stakers is a good idea:

  • Provides more utility to the token say you require 1,000 staked for 30% lower fees than naturally some people will buy MIR and thus increase its price

  • Lower fees mean a higher frequency of trades which has the potential to be a net gain in terms of fees farmed by LP’ers

  • Creates a higher incentive to continue holding MIR as you wouldn’t want to suddenly give up lower fees by unstaking and selling MIR

  • Higher Volume of trades is good for the platform, and most traditional exchanges have this staking mechanism as part of their exchanges token (since basically every exchange has a token)

Here is an example of the structure on crypto.com’s website for staking their token ‘CRO’

I like the idea of providing more utility to stakers but, I’m not sure how much control the protocol has over fees, I do believe they have some because Anchor protocol did change the fees quite a bit, but Mirror being on top of the terra blockchain, there has to be some constraints around fees.

That’s the difference with Crypto.com, their token is issued on Cosmos but their platform operates off-chain, so they have full control over fees.