The issue of whales winning the bulk of the prizes
Having several prize pools meant that instead of generating one big grand prize we generated several smaller prizes so there was concern we were fragmenting the prize.
We cut operational costs by making it so the protocol did not have to pay to distribute the prizes and instead users claimed them.
We became multichain.
Drawbacks of V4
Switching to and being stuck on daily prizes as opposed to weekly was a mistake as it ensured we were not presenting a nice headliner prize and there is no opportunity to win life changing money depositing on Pooltogether currently.
Having no means of collecting a reserve and instead actually subsidizing the prizes going out from the treasury added to negative impact to POOL holders. Pool depositors were doing just fine but anyone invested in POOL had little to look forward to. V3 was subsidized by whales while V4 was subsidizes by POOL holders.
One of the original plans for V4 was swappable yield source but in the end that was too much of a security risk and not having that included really eliminated the benefits of having one single pool in order to not fragment the prize. If we had stuck to the V3 model of multiple pools then users would have had the chance to migrate to the pools generating the most yield and also fits their own comfort level.
Switching to V4 made pods obsolete and was a missed an opportunity where we could have created no loss games.
V4 eliminated a lot of partnership opportunities as creating pools for other protocols via the pool builder was no longer an option. Partnerships with other crypto communities is a fantastic way to grow our own community and I feel V4 isolated Pooltogether from working with a lot of other defi communities.
The thing that is missing is a CHANCE at significant prizes that can make a major impact for small depositors. I think this can be achieved by creating some form of a progressive jackpot which could utilize TWAB as well. Taking some % of the total yield each day for a prize to be awarded every 3 / 6 / 12 months could be substantial.
As with most crypto projects we don’t need to sell a reality but the potential (hype) of it. So even if there is only 1 winner every progressive prize interval, just the chance to win is enough to market and get people excited. I doubt I would ever win that kind of prize (or grand prize) but just having the chance to is enough to keep my deposit in PoolTogether.
Having the potential for a large Jackpot prize is what gets people excited! Similar to the camera crew showing up at someone’s home and handing them a giant check. The people who watch that on the news or commercials are instantly drawn in and imagine themselves in that scenario.
Let’s emulate that feeling in PoolTogether in a safe & responsible way!
Delegating PTaUSDC from the treasury to random people on twitter and reddit. Delegation is such an unbelievable PoolTogether’s feature. Other protocols could benefit from it immensely, it just somehow needs to be advertised. What is a better advertisement than using the feature ourselves?
Thank you for seeking our input. These are my zoomed-out considerations, not so much specific feature requests.
Growth I think we need a clear path to growth for the network of pools concept before we build further into it. As I see it, the network is intended to bootstrap pools and aggregate to a headline prize. I don’t think either have shown to be true in the first year of V4. Consensus in the community that we are on a shared path to grow the protocol is important to me. I think the concept of V5 should be approved by POOL holders. I appreciate this thread as an invitation to participate in the process.
Decentralization Ideally this means POOL token holders directly control the protocol while it remains as minimally custodial as possible. I hope for a protocol design that minimizes required stewardship and where necessary governance has direct control of the protocol. Multi-sigs should be a last resort.
Autonomous Prize connected to yield. I’m happy to kill my own job as exec-team lead. Prize disconnected from yield adds centralization and complications that I think move us away from the ethos of DeFi.
Permissionless I think everyone agrees we need to enable more yield sources and assets. I’m a huge fan of a permissionless pools model ala PoolTogether V3 and Uniswap liquidity pools. Anyone can launch a prize pool. Like @TheRealTuna said there is a lot of growth potential in partnerships and marketing that comes with prize pools for all communities.
Composability At the core of many successful DeFi protocols is composability. Delegating tickets in V4 is a great feature. Can we build tickets to be composable - retaining chance while leveraging deposits into other protocols?
Excitement I agree with @TheRealTuna and @AndyKaufman - we need excitement in prizes. Is our value proposition a chance at an outsized return? At our current scale I don’t think there is enough potential for that in daily prizes. I’m skeptical that less frequent but randomly occurring prizes are the solution. If our bigger prizes are random I think we need a rollover mechanism where the prize value builds the longer its not awarded.