In light of recent awareness that Binance has stopped automatically staking Tez, I wanted to broach the subject on Agora (and Twitter) regarding what can be done to incentivize self-custody & non-custodial staking. As we expand into more use-cases for Tez and build our DeFi ecosystem, I believe there may be a number of ways to get this started.
Whilst this is not on a protocol level which would be ideal (I haven’t yet figured out how that would function), and requires a bit of altruism from the community (thankfully our community is warm, helpful, cooperative), I believe there are ways for our upcoming DeFi projects to incentivize self-custody and self-delegating.
One of the ways for this to be done is to have DeFi platforms/wallets incentivize deposits from large exchanges, where one’s reward may be slightly higher if deposited from a known exchange address. Or perhaps build an offering of great platforms so people will want to self-custody their own Tez. The idea is to get the ball rolling on Tezos DeFi to reach critical mass, and does not need to remain a permanent fixture.
I know this opens up a pandora’s box of ideas and issues, but I wanted to bring this up on agora to hear the community’s thoughts, ideas, and concerns.
Remember, a rising tide raises all ships.