My experience with KyberDAO, not impressed, not worth the cost ... IMO
Earlier This month, I was very excited to jump in and start to learn about the KyberDAO project
On their about page ( https://kyber.org/about ). They say.
KyberDAO is a community platform that allows KNC token holders to participate in governance. KNC holders can stake KNC to vote on important proposals.
In return, they receive rewards in ETH from network fees collected from trading activities in Kyber Network.
This was a really cool idea. I do like decentralized networks (One of the reasons I am here on HIVE). But, then also to do some decentralized financing and earn money while helping the community grow. Win/Win I thought.
To get involved, I sold about $2,099 (USD) worth of tokens and bought, 1,398.46 KNC. I figured this would give me a nice steak in the Kyber Network, and Perhaps a decent ROI on voting while participating governance.
The way I chose to get involved was to not delegate to a pool but do it myself. After installing the app, I transferred the KNC, and then went to stake at ( https://kyber.org/reward ). This is one my first :/ happened.
One thing to realize is that the Kyber Network is built on the Ethereum network. Kyber wants complete transparency in all operations, so to do any operation on the Kyber Network, you need to Use the Ethereum network, and this cost gas.
For me to stake, after which it will enable voting, it cost ETH in the form of gas. I did not have this, I had to sell a few more dollars worth of tokens to get ETH, send the ETH to my Kyber wallet, then pay the staking fee. :/ <-- my second "meh" face.
With KNC staked, it's on to the important part of the decentralized system that is voting. But again, Voting is on the ETH network, and that costs a fee. :/ <-- another "meh: face.
Already in the hole from in this project, I still decide to cast the vote and wait the two weeks to see what the reward would be.
Fast forward 14 days + 7 (A few more as they had the Epoch 0 (one week), then voting in Epoch 1 (2 weeks))
The voting rewards come in.
- Total Voted: 39,572,696 KNC
- Total Reward: 631.7112939612 ETH
- Your Reward: 0.0230980776 ETH
- Reward Percentage: < 0.01%
My reward was just about $7.4258 USD
Great, not the best, but at least I covered my cost. However, you have to "Claim Your Rewards", This translates to paying another transaction cost on the ETH network to get the ETH Sent to your wallet, my gas cost was about $4. :/ <-- again..
Then if I want to vote a second in the next epoch, (You have to VOTE to be able to get rewards) it will cost me another Transaction cost (About $2). :/
The numbers above are estimated but it came out to be, to Claim my rewards and vote in the next election, I would have profit of about $0.70 or $0.80 USD. Not to mention the cost already incurred by staking and voting in the first round. All this cost incurred by the use of Gas on the ETH network.
Talking with some people on the discord channel, they said I could just put my KNC into a pool and save on the gas cost. Great, but, then I am not voting on The operation of the block chain, I'm just gathering rewards every 14 or so days. Also, at a seven dollar profit at 14 days, this is not that great.
But it's a decentralized system with transparency.
I guess that argument could be made, yes.
However, I truly feel that the system wants to be decentralized it has to empower the smallest voice to be heard by some method. If I'm struggling to see profit from a $2000 investment, which is more than most people can spare, how can the majority of people with less money in the world partake in the governments of this network?
Also, I have a lot of issues with this project running on the ETH network. This platform has many fees, there are cheaper alternate networks out there (*HIVE, VITE), but yet developers still keep using the ETH platform. Why? IDK... its BlockChain 2.0, we are on to block chain 3.0.
As of today though I sold my KNC to move towards other networks.
I do wish this project well I hope that succeeds however until they lower the bar of entry and find ways to involve more people in governments without having them go through pool or lose money to partake, I am not going to invest in this platform.
What are your thoughts?
- Have you used the KNC network?
- Do you know about them and what they're trying to accomplish?
- What are your thoughts on my rant above?
Cheers and thanks for reading!
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