It's an opportune time to start getting everyone on the same page with respect to network parameters on Economics.
There are a lot of questions from people right now about how to validate
What does it cost to stake?
What is my expected return?
Do I have to supply hardware? Should I rent it from someone? What do I need to be thinking about as I choose a shard to stake?
Will there will be monetary expansion, how much, how is it managed?
How will validator rewards distributed?
We should get to a point on what we can publish
What will be decided at network launch
What needs to be turned over to the CoOp for governance as part of the governance meeting. In advance of the meeting
Scope of meeting
Mike
Are we including a fee structure for new validators joining?
Transaction fees
10 min
What policies are already set
Greg
Fees paid out to validators are inflationary. There is an issuance goes down over a period of 10 years over a logarithmic curve. Over the 10 year period we max out of 10% of the original volume. Decided in April of 2017.
Pure mechanics that this kind of token supply is unreasonable in the long run. It won't work for everyday economics (Greg's opinion).
Consider running another staking token that has a much much larger supply, because the economics of using Rev is not viable in the long.
If there are other staking tokens, the sum of the other staking tokens cannot exceed 10% of the total Rev supply.
Some small percentage of transaction fees in Rev that will be reverted to the CoOperative to fund operations.
Michael Stay (Unlicensed): What prevents someone from forking the code base and setting up a network without the fees? per Greg - it's a good question. No answer.
The CoOp is providing infrastructure, someone has to pay in order for the CoOp to sustain the infrastructure, without being paid, it cannot be maintained.
10
The parameters
Nash
Rate of monetary expansion is a global parameter. Each shard has its own mint contract. Every shard has a total balance, expansion happens in wall clock time. Solution to the Jumanji problem, no cryptographic stuff.
The validators for 1 shard will produce a transaction that expands the monetary supply that expands.
Kyle and Nash to meet and discuss how the mint works in the tree model.
Fee Structures in different shards and Phlo
The desire to keep validators incentivized and engaged in the network.
Validators with seniority are paid fees by new validators joining.
What about bad actors?
Icing out of a group of people can be a result of this.
Accusation
Kyle
Implement negative sum games for slashing. Validators all pay a little bit to completely slash a bad actor. If griefing costs, it will definitely go down. Greg is concerned about griefing solutions and he is not convinced that these are good things.
Moving forward
Timing does it work? Yes.
Transparency - After 2-3 sessions, start discussing with community in hangout.