Dear HydraDX Community,

I'd like to share my thoughts on optimizing our approach to subsidized staking rewards, integrating ideas that can attract genuine users while minimizing opportunistic behavior during high-yield staking periods. Additionally, I'll reference relevant psychological studies related to marketing to support this proposal.

Proposal: A Gradual Subsidy Release Strategy

I propose adopting a strategy that involves several phases to ensure sustained user engagement and manage expectations effectively:

Initial Staking Period: Begin with a phase of staking without subsidies. This allows users to experience the platform without immediate financial incentives, promoting genuine interest and commitment.

Slow Subsidy Release: Followed by a gradual release of subsidies from the treasury leading up to a predetermined fixed date. This gradual increase in rewards aligns with users' psychological responses to incremental incentives, fostering a sense of gradual growth.

Max Subsidy Period: Introduce a period of maximum subsidies from the treasury, as initially planned. This phase capitalizes on high-yield incentives while balancing the need for user sustainability.

Tapering Off: Subsequently, initiate a controlled tapering of subsidies to encourage long-term engagement even after the high-yield phase ends.

Psychological Considerations and Marketing Insights

Psychological studies in marketing highlight the importance of aligning user expectations with actual outcomes. Emission-based incentives can sometimes create unrealistic hopes, leading to disappointment among users and investors when reality sets in. To mitigate this, a phased approach that gradually builds rewards addresses these expectations, creating a more genuine and sustainable user base.

Additionally, the proposed strategy acknowledges the unique dynamics of web3 users. Unlike traditional web2 environments, web3 users are often incentivized to be positive due to financial considerations. Hence, it's crucial to set expectations that reflect real-world scenarios while still encouraging genuine participation.

Incorporating the ideas of a leading then trailing subsidy to and from a fixed date is a powerful way to strike a balance. It helps users set realistic expectations and also rewards early adopters for their commitment, aligning with both web3 user behaviors and established marketing principles.

Ultimately, my aim is to foster a robust community of users who are genuinely interested in HydraDX for its potential and utility, rather than solely for short-term financial gains.

I look forward to engaging with the community on this topic and welcome your thoughts and feedback.

Cheers.

Lucacrypto

#100 staking rewards