Thanks for this proposal, this is an enormous change with a lot of details to unpack.
I appreciate the tables showing some of the ratios on the economics side, what I’d like to understand more fully is why the NCN fee was chosen at 3% and why 1.13% is considered an appropriate NCN rewards rate?
Further, why is the NCN/DAO split 5/95% vs 10/90 or 20/80 etc? The NCN assumes the operational risk and costs while the DAO per this proposal has no exposure aside from the opportunity cost of the 25k SOL rewards? The fee could also be designed to first establish a separate state bond fund to replace the DAO’s 25k SOL, whereafter a normal DAO/NCN split is established.
With regards to the approved merkle root authority, I would like to see a pathway for future alternative merkle root authorities to be established and approved.
Regarding “Initial deposits to TipRouter NCN will be in the form of SOL LSTs accepted by VRT partners, including JitoSOL. Any change to accepted assets is subject to DAO governance.”
- It is unclear how VRT partners can specify acceptance of LSTs while the DAO can also have ability to change accepted assets, this appears to be a conflict of authority.