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jringo

Constant Block Reward (CBR) Value Proposal and Poll

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dc7d

@jringoFirst, I want to thank you for your efforts for this poll and detailed explanation, great work!

But: I think the poll is too much technical and complicated.

Especially the answers do not tell me what they really mean:

65%/35% means: sum of POR and POS will stay the same

70%/30% means: same POR, reducing Interest by 20%

75%/25% means: same POR, reducing Interest by 38%

80%/20% means: same POR, reducing Interest by 54%

85%/15% means: same POR, reducing Interest by 67%

Or do I misunderstand something?

Edited by dc7d (see edit history)
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jringo

@dc7d

 

With CBR, interest disappears. It is not reduced.

 

The reduction will the in number of GRC minted as reward for staking blocks.

 

Currently there are ~960 blocks staked per day. This makes 350,400 blocks per year.

Currently there are ~6,000,000 GRC minted as reward for staking blocks per year.

Currently there are ~10,220,000 GRC minted as reward for research per year.

Currently there are ~ 16,220,000 total GRC minted per year.

 

These numbers define a monetary inflation rate. Monetary inflation rate is the percentage number that changes when comparing CBR to %APR. The change in individual reward is more difficult the determine because of the variables involved. The spreadsheet in the proposal provides a very rough outline.

 

The most important part of the proposal for understanding what the options mean is the following:

 

65/35

By SM = 5,503,076.924784

By RM = 10,220,000

Total = 15,723,076.924784

 

70/30

By SM = 4,380,000

By RM = 10,220,000

Total = 14,600,000

 

75/25

By SM = 3,406,666.665888

By RM = 10,220,000

Total = 13,626,666.665888

 

80/20

By SM = 2,555,000.001168

By RM = 10,220,000

Total = 12,775,000.001168

 

85/15

By SM = 1,803,529.410528

By RM = 10,220,000

Total = 12,023,529.410528

 

As you can see, the number of GRC minted for staking decreases as we move from 65/35 to 85/15. This is because there is a technical barrier involved with changing the number of GRC minted for research rewards, so if we want to change the economic ratio of SM/RM, we must change the SM.

 

In other words, the current system has about 35% of the total GRC minted going to stakers, so if we want to increase the percentage of the GRC minted going to researchers, we must decrease the number of GRC minted as reward for staking.

 

You are absolutely right, though. This is a very complicated proposal because of how major the change from %APR to CBR actually is. From a non-technical standpoint, I would encourage people to vote based on principal instead of based on comparing %APR to CBR:

 

What RM/SM split do you think is appropriate for the future of Gridcoin? To whom should the minted GRC be going? And how much?

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dc7d

Thank you @jringo for your detailed explanation!

 

It's not important what I want, but what the community wants is. I just want to make sure that all voters have understood the implications of their votes. And that's what I'm not sure about. But I hope this little discussion makes it a bit clearer.

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jringo

@dc7d absolutely! Let me know if you think of anything else that should be clarified.

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dblanch256
On 4/17/2018 at 4:23 AM, dc7d said:

Thank you @jringo for your detailed explanation!

 

It's not important what I want, but what the community wants is. I just want to make sure that all voters have understood the implications of their votes. And that's what I'm not sure about. But I hope this little discussion makes it a bit clearer.

 

On 4/18/2018 at 12:09 AM, jringo said:

@dc7d absolutely! Let me know if you think of anything else that should be clarified.

 

Well, I'm seeing the results of using it now, and I view it as solving a major problem--little or no incentive to run a wallet more than occasionally to collect a reward.

 

As more of a minnow than a whale, I rely on DPoR for 98% of my income.  Contrary to other claims, the wallet is not a "light process" on my machine.  It occupies a 1 GB of my memory and services 40-50 network connections, both of which cut into my production rate.  Prior to this change, it was very tempting to do what so many larger earners were doing--fire up the wallet only long enough to claim rewards.

 

Now, with the 4.0 version, I'm no longer conflicted.  I earn a steady 10 GRC (even in the pool) by keeping my wallet up, which I think was the motive here.  Thank you for incentivizing the desired behavior.  This solution is clearly superior to simply expecting people to "do the right thing--even if it hurts".  I think the elevated network weight I'm seeing has already validated this change.

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djoser

There is only one downside i think to see here. Please correct me if i'm wrong!

 

The risen difficulty to stake a block will extend the time for small stakeholders -who don't use the pool- to collect the DPOR rewards dramatically, since the whales have their wallets online now all the time!?

 

With let's say 10k GRC a wallet was able to stake at least once a week. This time will extend, right?

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C.M
13 minutes ago, djoser said:

There is only one downside i think to see here. Please correct me if i'm wrong!

 

The risen difficulty to stake a block will extend the time for small stakeholders -who don't use the pool- to collect the DPOR rewards dramatically, since the whales have their wallets online now all the time!?

 

With let's say 10k GRC a wallet was able to stake at least once a week. This time will extend, right?

Yeah, with an increased POS difficulty it will take longer to stake as a small balance holder. That said, GRC is pretty cheap to acquire right now👍

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