New SmartSaving feature (on-chain)


#1

Hi everyone! I have an idea and would like to see what everyone think of that.

Since SmartCash is aimed to be a financial asset, more features should increase its value. I propose to consider a code upgrade - adding the possibility to set SmartCash lock up period for certain addresses on-chain.

Let’s say you have an address in your wallet. The wallet SmartSaving functionality will allow you to set certain chosen date to lock up your funds until then. Till that date there should be no way to unlock the funds. Adding more funds to the address should be possible. Lock up date for any given address should be public and can be seen in explorer.

You may ask, what is the purpose for that? :thinking:

Well, there could be different scenarios to employ such a feature. Let’s see few examples:

  1. Obvious one - there is a person who is not good with saving money. The feature will help such people to put aside some money for the certain date or far future.

  2. Long lock up period may benefit the community project creators - community may be more loyal to those willing to hold SmartCash for reasonable amount of time and not dumping it straight away.

  3. Lock up feature would allow us to modify SmartRewards feature in favour of those who is willing to hold longer. Just as an example to explain it better: (not real numbers):

6 - 12 months hold period (+10% weight)
12 - 24 months hold period (+25% weight)
24 - 36 months hold period (+35% weight)
more than 36 months hold period (+50% weight)

In this example if at the time of SmartRewards payout date your address has eligible funds with lock up period more than 6 months, you would receive more rewards. Simply speaking, if at that date you have 1000 SMARTs with 7 months lock up period left, they are counted as 1100 SMARTs.

Since SmartRewards was designed to fight volatility with hold incentive, this would encourage to hold longer. :smirk:

These are just few examples I could think of. I guess, there should be more use cases.

I wonder what you guys think, does the idea worth it?


#2

We will be moving rewards to a 3 month cycle in 1.3. We will also require voting to get rewards. This will make sure inactive addresses are not paid along with encouraging participation. To add multiple lengths of time is not really possible when rewards are paid based on number of addresses participating.

Check out the time lock vault feature in the webwallet. It requires you to wait a certain amount of time to unlock your funds. This gives you time to see the unlock email notification if there is a fraudulent attempt so you can stop the withdrawal. It addresses the security concern of bypassing 2fa or guessing a password.


#3

Thank you for your fast response. I’m aware of upcoming updates as well as the vault feature. The vault feature is particularly designed to secure funds from being stolen, not for saving purposes, if I get it right. And it is not on-chain solution, right?

What I suggested indeed is not a must have option, just something special, maybe even unique. Maybe not, as something similar can be implemented with smart contracts.

The algorithm to calculate SmartRewards considering some bonuses for addresses with lock-up period is very simple. We see the exact scenario in Crypto-Bridge token stacking. The longer you stake the more you benefit (up to maximum period). I see much bigger difficulty with the implementation and testing of the actual lock up feature.

The most inspirational use case for lock up feature may be people who plan to put aside some money for the future. They believe in technology, yet they don’t want to get nervous seeing volatility swings. So they can freeze some SmartCash up for 5 years, for example. If we are serious about the project, we should allow expectations of brighter future, right? And if we add an incentive to the long-term lock up feature, we will see users of that feature, no doubt.

Or maybe someone decides to make a gift for somebody, but wants it to be available not earlier than at certain date. In real world, we know cases when someone through the lawyer makes funds available for other person when he turns 18 or 21. Maybe it is good to better correlate to the name SmartCash and add more smart things, well designed for financial use.

I may be wrong, but these are just my thoughts on how to add value to SmartCash, how to make it stand out of the crowd. I guess we may do something extra and better than others. I see SmartCash not just as cash, but more as something smart. Could it be merchant-oriented complimentary software tools for easy book keeping, financial tools for smart money management or even set of business-oriented smart-contracts? Maybe I went too far or it is not a good time for it :smiley: