[Idea] Raise target_staked_ratio from 40% to 50%

[Gavin]

Feedback summary of the key criticisms that I’m seeing

1. It’s too soon to make changes to the target without observations.
   → My answer: I agree that it’s too soon to make changes, but imo changes to Namada’s staking rewards (ie. going toward 0) would be much bigger change and too early.

2. There’s a desire to pick an ultimate target rate and stick to it: use the PID the way it’s designed to be used to get capital-efficient security while setting long-term expectations for participants and stakeholders.
   → My answer: how we use the PID is a bit nuanced, so I’m hoping to wait (ie. past Phase 5) until we get some observations (eg. security needed for the MASP; NAM liquidity) and have some discussions. In the meantime, a target increase would help to hold us over. I suspect that as is, the PID won’t deliver the network security capital efficiency that it’s designed to achieve without causing validators to leave long before a sufficent amount of stake unbonds.

Key take-aways for a proposal (and beyond)

1. There is a bit of opposition here, but there will likely be substantially more support for increasing the target than opposition.

2. There appears to be strong consensus here that:
   a) Phase 5 will likely affect staking behaviours and dynamics enough that it’s hard to make lasting decisions now. Even if we increase the target, the matter isn’t settled and it will be important to revisit the topic of how the PID is used after gathering observations/data.
   b) We should hone in on a set of long-term parameter values as soon as possible.

3. We should be mindful that more staking will also decrease the staking reward rate.

4. There’s additional nuance that we’ll need to consider when we discuss this next, such as how staking competes with trading liquidity and NAM MASP deposits.

Thanks for feedback and discussion!

We (Knowable) are ready to move this to a draft proposal: [Proposal] - Increase target_staked_ratio from 40% to 55%