As a solo staker and RP NO, this will likely involve a lot of projection of my own desires and motives, but here goes:
What are the defining characteristics of solo stakers?
- emotional investment in securing the ethereum network:
For example, take this recent tweet from superphiz:
I can offer three alternatives that are FAR better than existing custodial solutions:
- Solo stake from home, if you can.
- With 16 Ether, set up a minipool
- With less than 16 Ether, stake by holding the rEth token.
Convincing a staker to leave the ‘gold standard’ will require a strong argument of why RP is better for the network (at least in this historical moment); there’s just not enough growth potential if we rely mainly on folks with 10.4-32 ETH.
- Relative risk-aversion: it’ll be an uphill battle to convince stakers to adopt a model that has significantly higher risk (risk of total loss of funds with any generation/storage of new seed phrases, smart contract risk, RPL value risk, gas costs, tax headaches etc etc).
While I love me a good POAP and raffle (and I would donate to poapathon to fund one), we are talking about hundreds of thousands or millions of USD$; I think it is unlikely that we could offer enough direct benefit to migrators to overcome the above concerns without bankrupting the pDAO (although would be bullish for #trading)
What I think is going to be necessary:
Seamless transition from solo staker to RP NO from a coding and UI standpoint
community has fairly low control, hopefully team has this covered, and will release specs soon so we can start preparing potential migrators.
Documentation/appeal on the ethical and intellectual level. This is where I would channel most of our funds:
Infographics and easily digestible summaries of RP strengths. Migration guides aimed at different levels of technical expertise. Audit history and smart contract security. Spelling out the ways RP helped beaconchain diversity and what it is doing for EL diversity compared to the network average. Smoothing pool. Retrospective public goods. The list of strengths of RP go on and on. Encourage interpersonal outreach to aligned groups, although too much proselytizing will be unwelcome. Fitting RP strengths into a 30 second ad is impossible, so I am suspicious that lump payments to Bankless are NOT cost effective compared to many smaller ‘thank you’ payments to our community members for doing what they do best.
surge plan for #Support:
There may be many non-tech folks looking to migrate, and we need to be prepared for a lot of questions. Discord support bots, dedicated thread for this purpose, amping up ‘tech support’ for a few weeks with either payments or other ‘thank you’ gestures, etc.
Chipping away at the RPL problem:
Outside of our community, RPL is viewed with significant skepticism. Maybe 1% (my rough estimate) of new ETH staked since RP launch required purchase of RPL; i think that’s a small percentage of even the solo staker pie. My conclusion is that most solo validators do not want RPL exposure, despite increased APR.
Most solo-stakers do not have RPL exposure currently and likely have been accumulating ETH from a much lower cost basis. According to @valdorff’s analysis, LEB 8 offers 9% better returns than solo stakers (ignoring RPL value or emissions); if you take into account capital gains to sell ETH to RPL, this drops to about 5% value over solo. This is so minimally elevated that, given the additional risks (for a risk averse group) and gas costs/etc, it seems unlikely that many will migrate for the ETH benefit alone. In fact, it is a rounding error away from the current benefit for LEB16 (ie, 5% or 2.7% with capital gains) for which uptake is lacking.
The argument has been that anyone with a bullish or neutral outlook on RPL would benefit from running minipools; that seems insufficient to me. We don’t need moon math, but I think turning RPL bears into RPL neutrals should be a key part of outreach. We need to defend the purpose and value of the token.