Q&A Thursday Session with Credits’ CEO Igor Chugunov Oct the 13th
After releasing the announcement of the proposal of the Staking program last Thursday, we were bombarded with related questions and feedback from the community. So today Q&A Session is fully dedicated to this subject.
Q: “The benefits and the disadvantages of this proposed new idea? Or if you want, explain why this is a good idea to put forward to get node holders to vote on?”
A: The main purpose of Staking introduction is to attract new users and people into the project, new holders. As a disadvantage, so far we see is the misunderstanding of the concept by the community. It is important that all node holders participate in the poll as this is in their direct financial interest and this is a question of popularization of Blockchain protocol, and in case you are a node or CS holder, we believe that you do care about the protocol's future.
Q: “Why are you bringing in emission?”
A: Mining is not issuing coins via smart contracts with no efforts made.
To receive a new coin, you need to block coins for six months or a year.
One year. And there is no guarantee that you will automatically receive a new coin. Not everyone will get it, but those in compliance with the Staking program only.
Q: “ Are you introducing mining in order to get more coins?”
A: You think that I'd like to get more coins. No.
We have coins, but they are not worth anything big now. I do not pursue the goal of getting more of them. My target is to establish a balanced model for people to buy coins, use them, and participate in network maintenance. Create such an ecosystem that will allow everyone to benefit.
Please, let's talk rationally. We need to unify our efforts.
Yes, we, at the Credits team, support this process because we believe that the current model does not have enough motivation for blockchain development and network scaling.
And I'm trying to tell you both the pros and cons of the current blockchain model and what will happen if we don't introduce staking initiative.
I can see that some in the community consider staking to be a form of issuing new coins. And we want to emphasize that this is not! In staking CS acts as a reward to the trusted node for holding coins in its account (for lockout periods of 6-12 months) and devoting resources and money on creating a new block.
And since this topic was brought up, I also want to say that the team is not interested in endless coin print. The team is interested in increasing the incentive and attracting a new audience and followers for the project. As such, the team does not need coins.
Q: “ Why is a model earning on transactions not good enough?
A: Earnings from transactions will not cover all the costs of running the notes. In fact, except for Ethereum, which only now holds 95% of all DAPs.
An example is the Tron, who generally excluded all the fees or minimized them to zero. And they never switched them back. How will the network be supported?
What I'm trying to say is that Credits can handle millions of transactions, but there are no customers for that right now. In the future: yes, maybe in some years.
And at present, we need additional services. A token should not just have beautifully written documentation, but it needs to be listed on dozens of exchanges. But these (other blockchains' tokens, listed ) do not have top blockchains positions on the market.
I am explaining this in detail to demonstrate that to reach the top of the market you need to have a balanced model, with every element set in the right parity and in the right place.
Q: Why does the team want to introduce new coins?
A: Let's first correct the definition. This is not a release of new coins. This is a coin issue as reward to whoever blocks for 3 months ( 10% of the reward in this case).
Q: “When staking in a mobile wallet?”
A: We will first vote for the staking program as a whole, and then we will make a decision on adding this option to the wallet in accordance with the decision. Then there will be a roadmap.
Q: “Will the team be voting? What if the CS team is going to vote?”
A: Well, we are part of the project. All at Credits team is driven by the project’s future and fully concentrating on it. We will be voting, as we also would like to express our opinion.
Q: “It could attract new people/nodes to CS?”
A: Yes, of course, this is our actual goal to attract new users and holders.
In the end, I would like to thank everyone questioning the Staking initiative and providing the feedback (positive or negative). We are very attentive to the response from the community and ready to continue this discussion. Questions and doubts help us to see things from different perspectives, improve and strengthen our vision.
We welcome your questions in our social media and TG chats for the next week Q&A Session.