With Luke Youngblood (Exec. @ Coinbase Custody)
https://trust-less-2020.dystopialabs.com/
- 8% market cap for PoS currencies
- expected to grow to 20%
- 100M annual fee revenue for miners/validators
- Early birds (like tezos and ethereum2.0? have high participation rates)
- fewer investors in later networks (venture capital funded)
- cosmos 'Game of Stakes' method (incentivized testnet)
- helps decentralize token distribution
- trains operators
- PoS need to maintain independent and geographically diverse validators
- reduce cartel formation
- Voting power should be evenly distributed across parties (validators)
- early backers of new PoS networks are primarily venture capital firms
- Quality Assurance (find bugs early and in testnet)
He Participated in "Game of Stakes" series 6, Dec 2018 - Jan. 2019.
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requires 2/3 quorum (testnet upgrade required global community)
-
withdraw rewards + re-delegate
- rate of inflation accelerated simulating years of network activity in a few week so fitme
- to come out ahead, had to constantly withdraw + re-delegate
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Adversarial network
- censoring transactions
- required work to make sure transactions were sent through
AWS Activate
- easy + risk free way to manage validators as a service
Great entry point into getting into cryptocurrency engineering jobs at exchanges,
- Celo Stake off
- Cosmos Game of Zones
- Polkadot Kusama
If your desire is to profit from the operation:
- understand operational costs
- cloud + datacenter costs
- bond or deposit required to stake
- human cost (your time is not free)
- experts (legal, accounting, tax)
description, cost, recommended quantity, extended cost
cloudHSM clusters, 2116.80, 4, 8467.20
tezos public nodes, 128.33, 24, 3079.92
tezos private nodes, 128.33, 24, 3079.92
network load balancers, 24.60, 4, 98.40
bastion hosts, 10.11, 24, 242.64
baker nodes, 89.33, 16, 1429.28
estimated data transfer costs, 500, 1, 500
subtotal: 16897.36
business support costs, 1182.82, 1, 1182.82
total 18,080.18
Understand risks with validation on a given network Understand mitigations
- slashing risks
- good redundancy
- business continuity
- legal and financial
- proof of stake validation is a brand new financial service
- do you need a money transmitter license? (required in some juridsictions)
- proof of stake validation is a brand new financial service
Track private key material! Understand when they are exposed Understand how to rotate keys + validators
model various profit + loss scenarios to help understand what is required for profitability
Annual Expenses, Delegated Ammount, Price in USD, Rate of Return, Commission/Fee, Profit
120,000.00, 5,000,000.00, 4.00, 8.00%, 10.00%, 40,000.00
120,000.00, 5,000,000.00, 2.00, 8.00%, 10.00%, -40,000.00
120,000.00, 10,000,000.00, 2.00, 8.00%, 10.00%, 40,000.00
- setup a validator
- create unique smart contracts
- economics + game theory
- how to take advantage of it
- polkadot validator nomination example
- how to take advantage of it
- new networks need block explorers
- what's going on
- who's sending + receiving money
- what's going on
tezos foundation grant program
- since july 2018
- 62 entities/projects
- 23 countries
- 37.4M total so far (Feb 2020)
- tezos foundation has 650 million worth of bitcoin
(at 39 minute mark)
- students
Google has one
Accounting + Expenses
- in US, definitely should
- setup LLC, Sole-prop, s-corp, etc
Toqueville group (helps businesses)
- Working on cloudformation scripts (with speaker)
- process of documenting (with speaker)
- Uses YubiHSM
- over vpn to validator in cloud
Tezos Foundation routes all logs to sumo logic, helps them with security analysis
One Medium Post from Ben Davenport that I recommend reading through to get a different perspective on the PoS space:
A Stake to the Heart - Why Uncle Sam Loves Proof of Stake
Assuming most of the premises in his post are correct, the most poignant statements for me are: