TL;DR: These proposals are to set the staking inflation percentage on the Moonbeam and Moonriver parachains to 0%.
Once enacted, staking & collator reward issuance will stop. This means there will be no more staking or collator rewards. Collators will only receive priority fees/tips.
Abstract
Recently, the Moonbeam Foundation announced that Moonbeam will relaunch on Base and that the GLMR and MOVR tokens will be migrated to Base as ERC-20s.
For further information related to the rationale for the migration and the token migration mechanics, please refer to the announcement forum post.
Referendums MR103 and MB156 represent the first phase of the migration by setting staking and collator rewards to zero thereby incentivizing network participants to free their tokens for the migration.
Details
In order to facilitate an orderly migration, the first step is to incentivize:
-
stakers to unstake their tokens to make them transferable
-
collators to gracefully exit the candidate set releasing their collator bonds. (Note that the Foundation will maintain enough collators to ensure network stability and liveness)
We therefore propose the staking and collator rewards to zero. If this is not done, then stakers/collators would be incentivized to wait until the last possible moment to unstake/leave the candidate set in order to maximize rewards.
Moreover, holders that unstake earlier are penalized as compared to holders that wait since the less tokens that are staked, the higher the rewards for tokens that are still staked. A similar situation exists for collators.
Thus, in order to level the playing field, the proposal is to set all rewards to zero via governance.
During the token migration window, the active/scheduled collator candidates will be tracked. Efforts will be made to contact external collators that remain. However, enough Foundation collators will be kept active in order to maintain parachain liveness.
About halfway through the token migration window, a follow-up referendum may be used if needed in order to remove collators from orbiters, etc.
At the end of the token migration window, the Moonbeam and Moonriver parachains will be put into “maintenance mode”. This will block user transactions, EVM functionality and XCM execution.
Following this Foundation collators will be stopped leaving only an archive RPC in read-only mode.