@myshkin
I’ve feel similarly but I was thinking it made sense to incentivize participation nodes. Silvio and other smart people here think otherwise. It doesn’t make sense to me because validators on eth are / will be rewarded about 5% + whatever fees are associated. Why shouldn’t we reward validators?
If we broke down governance into tiers of participation it could be voting, extended lock up periods, and node running (participation/ relay). That could maybe account for 5-7% APR then some of the dapps implement a way to lock up your real Algo while doing the above, and give you wrapped tokens which can be put in pools…. Maybe that’s another 3%. So we get the best of both worlds and still get a good rate.
Strictly giving the majority share of rewards to participants is a weird way to run a blockchain and is short sighted.
If we want to incentive defi the foundation can launch a stable coin program or fund more devs etc. which is not what is being discussed here.