Since this was proposed for MIP and heavily discussed, I wanted to give an opinion as the president of Massa Labs,the software development company behind the Massa node.
Massa Labs staking transparency
As of April 22nd, 2025, Massa labs is staking with the following accounts:
- AU12Vi9V6Fsq9HMh9ge88WJ5cgymBGc3oUX2F6WpRqA5HdabPcPt5 => 81,101 Rolls
- AU128Rexxftc1jYhyouTesxjPqeezEHh5LUAzNaAfqDo1dWRgPH8m => 10,000 Rolls
- AU12L4gaQ8j8j5yBt2jSmcsmu51yZW2gLjnZr5rAWnjKJDNacR3jp => 42,263 Rolls
Total: 7% of the active total stake at the time.
Position
Technical assessment
Technically speaking, the proposal is sound.
The incentive to create blocks when no operations are available is preserved.
The incentive to fill blocks with as many operations as possible, and the operation fee market at saturation are both preserved.
The values are within secure bounds.
The proposal increases the security against block producers flooding their own blocks, using burns.
Alignment with our goals
We believe this proposal aligns with our goals as it sustains token value at high activity without penalizing node runners at low activity.
As a word of warning, we do observe certain issues linked to deflation:
- burning part of the operation fees will decrease staker revenue at medium activity
- burning part of the operation fees might increase operation fees for users at high activity
- the total available storage space will decrease over time, which might hurt deweb storage availability for new users in the long run
- the total number of available rolls will decrease (as 1 roll is always 100 MAS), potentially leading to centralization issues in the long run
- if deflation causes the price of MAS to go up, the cost of deferred calls would go up because deferred calls have a minimal fixed MAS cost per unit of gas. This will make the feature less attractive.
- if deflation causes the price of MAS to go up, storage costs will go up because storage space has a fixed cost per byte. This will make deweb less competitive.
- if deflation causes the price of MAS to go up, the staking entry barrier of 100 MAS would incur higher costs for new stakers and might hurt decentralization. This would make staking less accessible and attractive.
However, we believe those effects are minimal in the foreseeable future given the remaining token unlocks and reasonable expectations on block load in the short term, thus giving us time to come up with better de-correlated pricing schemes for operation fees, storage costs, deferred calls fees, and rolls costs, all while better protecting token value in the meantime.
Vote
Massa Labs will vote in favor of the proposal.