My question here is why should pSTAKE not charge any fees on staking XPRT? In my opinion, this is something that does not add value to PSTAKE token holders. As a PSTAKE token holder who isn’t staking XPRT with the app (as I am sure there would be many more such people), it doesn’t add any value to me or the application. And if I am understanding the problem accurately, if the staking rewards on XPRT drop again, the reward rate would again have to be updated to keep the protocol solvent. This is not ideal and leads to unnecessary proposals in the future to again reduce the reward rate.
My counter-proposal would be to have pSTAKE charge the same percentage of fees as that charged on ATOM staking (9.05% as per the sheet shared above). This would help keep the protocol solvent even if the staking rewards on XPRT reduce further. I am open to discuss more on this but this makes more sense to me rather than giving a huge discount to XPRT stakers and not adding value for PSTAKE token holders.