flash25296
commented
3 years ago Currently the direction is that the foundation gets 10% of block reward and that does feel like a large quantity at current prices. So a 10% reward is .10% x 20 BR x 30 blocks an hour x 24 hours x 365 days = 525,600 coins. @ current prices that is $735,840.00 USD. What direction does the LF have with these funds. My guess being a not-for-profit means they have certain requirements that have to be met. However what about the 10% of nodes that the foundation is also allowed to run and pull rewards from the SN piece of the Block Reward. I think we need to work on liquidity in the market place without increasing the emissions. I would vote for a reduction of the LF to ~ 5% of Block reward and still maintain the OPTF's ability to hold 10% of all SN.
I think we need to agree on prioritize. I did not assign a rank below but all these seam rather important in my mind. Liquidity Dev funding Sybil resistance Incentives
I say make the BR = 18, with 1.5 going to the OPTF and 16.5 to SN. Social contract stays the same, LF gets about 8.33% and we have a reduction in emissions.
stubora
Lucifer1903
The 6 Oxen per block reward for the Chainflip liquidity fund (formally blockswap) is due to end in just over a week and soon after it will be burnt as it is no longer required. I feel that this is a good time to bring up the question of what will the block reward be going forward.
Currently the block reward is 25 Oxen per block; with 2.5 going to the foundation (10%), 16.5% going to SNs (66%), and 6 legacy mining reward going to chainflip liquidity funding due to be burnt (24%). Prior to the chainflip proposal https://github.com/oxen-io/oxen-improvement-proposals/issues/24 it was decided in last block reward discussion https://github.com/oxen-io/oxen-improvement-proposals/issues/20 that the reward would be 21 Oxen per block with service nodes receiving 18.9 (90%) and the foundation receiving 2.1 (10%) respectively. As the Chainflip project has spilt off from the Oxen ecosystem I would expect that we are reverting to the previously decided block reward of 21.
However I would like to make a suggestion and open this up to further discussion. I propose reducing the 21 Oxen per block to a nice round 20 and splitting the reward not only between service nodes and the foundation but also the Oxen Funding system (formally Loki funding system https://docs.loki.network/Governance/LokiFundingSystem/) and a liquidity fund.
The 20 Oxen block reward would be split as follows; 2 for the foundation (10%), 0.5 for the Oxen funding system (0.25%), and 17.5 for SNs (87.5%).
However service nodes should reduce their 17.5 block reward for 4 years to 16.5 (82.5%) and 1 million Oxen be printed immediately to be used in the chainflip Oxen pool with the foundation providing the other side of the liquidity pool pair. The 1M Oxen would effectively be borrowed from future emissions and paid back by burning 1 Oxen per block for 4 years.
I understand that there is currently an ongoing trial and discussion relating to Liquidity Provider Rewards https://github.com/oxen-io/oxen-improvement-proposals/issues/28. Although we are already halfway through this trial and so far it's falling well shot of the intended goal. My proposal is viable alternative to increase Oxen liquidity.
Also to reduced coin inflation if supply goes over 100 million Oxen then the 20 Oxen block reward should automatically reduce to 10 Oxen. This would reduce coin inflation to 2.5% or less per year.