Moonbeam Liquid Delegation

The collator and delegator program in Moonbeam (and Moonriver) is highly valuable. The rewards are a portion of the total supply (1.5% to collators and 2.5% to delegators), however, you need to be one of the total delegators to be in the active set to receive rewards.

This creates an entry to barrier difficulty for individuals in the moonbeam community. If your total contribution does not allow you to be in the active set, you are set with a dilemma: a) to contribute more to push yourself back into the active set but risk, even more, to be at risk of zero rewards as others bid as well or b) undelegated receiving 0% rewards for 7 days while you wait for the un-delegation to take effect.

A liquid staking token will allow individual community members to be able to buy into our liquid delegation token, contributing to our treasury, which will then delegate on everyone's behalf. With the collective contribution, we are able to delegate and be at a high delegation amount, reducing the issue of being a small delegator.

We will also consistent rewards as we will mitigate no rewards from the collator being kicked out of the active set by routing our delegation towards a moonbeam team official collator which will be brought back into the active set if and when it ever gets removed.

Over a long timeframe, when the liquid delegation token treasury can amass enough capital, we can spin up our node and re-route our delegation from the moonbeam official collator to our own, and will then receive additional rewards for the treasury (1.5% of the total supply / 64 total collators, per year)