2018-06-29 Validator Economics Meeting

Monetary expansion

• Monetary expansion rewards are paid out via seniorage at some fixed percentage of the validator bond

Validator Rewards

• Waiting on Greg for this.  Papers tell you the canonical form for the attractor.  Relationship from the DAG(the justification graph) to attractor is pretty straightforward.  

• Each validator would earn rewards based upon how close they are to an ideal DAG (justification tree)

• Rewards calculated at the time the block is created.  Stored in PoS contract.  Blocks built on top of the PoS contract are able to make transactions against the PoS contract for those rewards.

  • Attractor is forced on by the GHOST rule.  The GHOST rule doesn't say anything about the utility of blocks getting finalized.

  • Desirable to have the rewards calculated as part of the block proposal, based on the justification tree leading up to the block.  

Stake Weighting 

• Nash says no - more nodes spread the equivocation risk versus a single node with huge stake.

• Greg says yes - wants to separate the whales from the tails.  Wants to know if there is a cluster that corresponds to a whale.

• Stake in each shard is the same.  Nash recommends that the stake is matched to the OpEx and CapEx required in order to meet the Shard SLA

  • Stake weighting decided by the next meeting.  Shard by Shard weight or stake weight.