2018-06-08 Validator Economics Meeting notes

Date

Attendees

Goals

Discussion items

TimeItemWhoNotes
5 minReason for meetingNash
  • 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 meetingMike
  • Are we including a fee structure for new validators joining?
  • Transaction fees
10 min  What policies are already setGreg 
  •  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.
  • 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.
10The parametersNash
  • 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.

AccusationKyle
  • 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.

Action items