Several validators and delegators who own MPond have pointed out that staking rewards for MPond are abysmally low if the APR is looked at. They suggest that inflation be modified to increase the MPond staking APR.
Right now, an equal amount of daily POND inflation is dedicated towards both POND and MPond staking rewards.
Reason for low APR numbers for MPond
- Suboptimal distribution of MPond delegation. VCs delegate to a few brand names who are witnessing ‘over-delegation’ and not diversifying by running more clusters.
- Amount of MPond delegated when converted to POND is much higher than the amount of POND delegated totally.
- Reduce the inflation dedicated to POND to compensate for the increase in that dedicated to MPond.
- Increase the staking rewards for MPond by increasing the total daily POND inflation alone.
- A combination of solutions 1 and 2
It would be good to have the feedback of both POND and MPond holders to determine how many consider this a serious concern. Additionally, inputs on an appropriate APR for MPond would be equally appreciated.