A staking pool that offers collateral for gas fees, transactions, or the interoperabilty between other Layer One blockchains for every transaction across the “new internet”. The staking pool would cover 100% user costs for their transactions on the Ethereum Network (or other protocols if possible?), and charging a nominal fee of something like 1-5% for every transaction they use where AMP token is providing the collateral. A very simple/user friendly platform would be preferred (think uniswap) that someone could connect their digital wallet to and once enough confirmations are made on the blockchain those miner fees would be released back the user saving them 95-99% for every transaction/payment to the network. A collateral Layer 2 essentially. If a user wanted to mint an NFT or just simply send the NFT to their digital wallet, AMP would provide the collateral. This collateral pool would pay the entire cost, and with the added fee charged to the user would take that entire transaction cost and purchase AMP Token at the current market price and putting the AMP back into the staking pool and rewarding stakers a interest rate paid in AMP. This token could eventually provide collateral for every transaction on entire Ethereum ecosystem, once the price appreciates enough in the staking pool. The AMP Governance Facilitator wallet has a current market value of 61 million $USD at the time of this writing, and a small percentage of that could be used to hire some of the best software developers and engineers in the world to create this user friendly “ETH Transformer”. And another small percentage going into the staking pool until the network grows large enough that initial investment can be returned to the Governance Facilitator wallet. Thoughts? Tell me why this isn’t possible or feasible? Or does the pending release of ETH2 eliminate a use case for this idea? Happy Thanksgiving everyone!
saving them 95-99% for every transaction/payment to the network
What is this “95-99” percentage of? Can you walk through an example transaction that would benefit from this and describe how it works and how the user would save money?
95-99% is the hypothetical costs savings of the hypothetical 1-5% costs to use the new collateral network that’s created that a user links to their wallet.
Let’s say it’s a 5% decided market rate as compared to what Flexa does in charging 1% to merchants. The user is saving 95% of the cost of their gas fees. An example could be if someone wanted to stake their amp tokens to Flexa Capacity, but the gas fees equate to $300 of ETH. A smart contract could convert the eth gas utilizing the (ETH fees stake pool) to provide the collateral until enough confirmations are made and the user who’s staking their Amp to Flexa would be charged 5% of the original $300/eth equating to a $15 (5% fee). That $15/5% fee is now used to purchase $15 worth of AMP and putting it back into the staking pool.
The costs of using this new imaginary layer 2 collateral pool are hypothetical as an idea, and developers a lot smarter than me would determine the price of what is most economically ideal
I don’t understand this part. How are you performing a transaction that would normally cost $300 for $15 with a smart contract? How does the smart contract perform the transaction at such a huge discount?
The stake pool is giving the miners their $300 and charging the user 5%. The person trying to stake their tokens to Flexa Capacity would need to own the current amount in ETH valued at $300 in their wallet and will have 5% less ETH after the transaction. Stake pool is essentially converting $300 of Eth fees for the new $315 of newly purchased AMP.
Let’s say this imaginary service is available, and with a current staking capacity is $2000. Four individual users have gas fees totaling $1000 for their four separate Ethereum network transactions. The stake pool pays the miners their $1000 of Eth fees with $1000 of AMP by providing the collateral. The stake pool then has 5% fee of $1000 equaling $50 that’s used to purchase more AMP. These four separate users would need to have a combined $1000 of eth in their wallets. The user gives the collateral pool their Eth to pay the fees and after the confirmations their ETH is returned at 5% less value. After the transactions the ETH fees staking pool would have the value $2050
OK. Let’s say the collateral pool contains $1000 worth of Amp. A user wants to stake, and the costs for the staking transaction would be $300. Instead of staking like normal, this user uses the service you are describing.
The collateral pool pays the staking transaction fee by converting $300 of Amp into ETH (for now we will skip the feasibility of this). I am assuming the mechanism by which the collateral pool pays the staking fee is a smart contract (?) - correct me if I am wrong. Who pays for the transaction that triggers the smart contract? Wouldn’t this transaction itself cost almost as much as just staking normally?
Now that the transaction fee for the staking has been paid, the collateral pool has $700 worth of Amp. The user is charged 5% of the $300 which is $15, so the collateral pool is now at $715 (plus whatever the new staker puts in). How is the collateral pool made whole? It is currently $285 short from where it should be.
User has a $300 transaction cost in Eth to say stake to Flexa, or send to a defi platform, or maybe mint an NFT. This user would need own $315 of eth (pretty much providing their own collateral). You give the smart contract or network or whatever it would be, $315 of Eth. After the transaction is verified the user is returned $300 of ETH. Staking pool is rewarded with $15 of AMP. User would need to own at time of transaction, 5% more than the total cost of the transaction.
Give me your ETH so I can pay your bills, I’ll return it at 95% of the original amount.
I just don’t think I am going to understand. Thanks for trying to explain it.
I feel like I understand the issue your proposal is trying to fix. Amp needs to be staked in order for the token to fulfill its role. However, the problem is that currently it is too expensive to stake/transfer amp to wallets and then to flexa for staking.
Please correct me if I’m wrong. I just don’t understand how this specific idea could be implemented