@econmysten With no disrespect, but the whole point of Proof-of-Stake network is to enable tokens to stake and help scale the network without compromising the initial token utility and value. And the liquid staking plays a key pillar in this new vision.
If you are aware of the history of liquid staking, you will realize this was invented because staker found it really inefficient and unpractical to stake without receiving back a certificate. A good real-world reference is, users go to the bank to deposit their cash and shall receive an account balance (the certificate) and they can use this proof to borrow/lend and explore other defi leverage elsewhere. Discourage liquid staking to some extend is like encouraging users to stake without providing a certificate - even worst - what if some staking service rug pulled and went away with all users’ funds? who to blame and how to track each user’s lose?
As one of the defi builders in the space, with no disrespect but I found this rather funny to make such a statement " liquid staking is not encouraged". It not only kills lots of defi builders building on Sui - liquid staking protocol but puts an arrow into the defi design - liquid staking provides the basic sui token’s leverage and could scale up the network TVL and value much higher, making sui network competitive with Eth, BNB chains, Polygon chains and etc.
I have project founders chatting with tier one VCs and almost closed on them - not until he/she mentioned such a thread in their talks - the tier one VCs found it bizarre and funny - ended up pulling off the deal because of what this thread is talking about.