inflation of foundation pool

[rob-solana]

Problem

inflation, as specified, is split among validator rewards, storage rewards and the foundation foundation pool/pools doesn't/don't exist yet

Proposed Solution

possible approaches:

• keep a list of the accounts to be inflated as "the foundation"
• add a new account owner that allows the bank to find these accounts?
• ?

[rob-solana]

CC @aeyakovenko @ericlwilliams

[ericlwilliams]

@aeyakovenko it's likely we'll have to manually transfer foundation rewards in to the CBC account (they restrict 3rd party deposits) or we keep them in a separate account and combine the two (CBC and foundation rewards) during disassociation. WDYT?

[rob-solana]

@aeyakovenko @ericlwilliams any updated thinking on this?

[aeyakovenko]

@rob-solana i think the plan is to handle it of chain. Basically only delegate to people who can follow directions and lockup rewards.

[ericlwilliams]

@aeyakovenko how does that relate to the inflation % specified to the Foundation?

[aeyakovenko]

@rob-solana @ericlwilliams

so the % reward fee that is given to the foundation from the total inflation, is basically like a fixed global commission on all inflation rewards.

[ericlwilliams]

Yeah, that was my understanding as well

On Wed, Dec 18, 2019 at 8:17 AM anatoly yakovenko notifications@github.com wrote:

@rob-solana https://github.com/rob-solana @ericlwilliams https://github.com/ericlwilliams

so the % reward fee that is given to the foundation from the total inflation, is basically like a fixed global commission on all inflation rewards.

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[rob-solana]

The question here is how inflation code will identify the Foundation accounts.

Under the current configuration, in the first epoch (~13seconds), the BS leader will be entitled to redeem:

500_000_000SOL        // capitalization
  * 0.15              // inflation at T=0
  * 0.85              // validator rewards portion of inflation
  * 32                // slots in first epoch, about 13 seconds worth
  / (365*24*3600/0.4) // slots per year

Which is approximately 26SOL. The 2nd epoch is double that, and so on, until other nodes come online and more points are available, which will lead to rewards points dilution.

The Foundation is supposed to see 1.5SOL of that first epoch's inflation.

[ericlwilliams]

Does it have to identify the Foundation accounts or can we just specify a new account where the Foundation inflation rewards land?

On Sun, Apr 19, 2020 at 5:37 AM Michael Vines notifications@github.com wrote:

Assigned #5786 https://github.com/solana-labs/solana/issues/5786 to @ericlwilliams https://github.com/ericlwilliams.

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[mvines]

Not sure if this issue is even relevant anymore actually.

[mvines]

My bad, this is relevant still. The foundation/foundation_term fields in sdk/src/inflation.rs aren't hooked up to anything

[ericlwilliams]

Looks like we're lumping Grant and Foundation inflation issuances into the Foundation terms here, which I think is fine, but since we originally scoped 5% grant & 5% foundation, might bump foundation inflation default to 10% for now. I think 7 years default is also okay to keep for now. Will publish and circulate official numbers before go-live.

[ryoqun]

@ericlwilliams @mvines I think we need to address this before enabling inflation on mainnet-beta, which is nearing to realize. :)

[ericlwilliams]

@aeyakovenko what do you think? I think 5% Foundation, 5% grant still sounds reasonable (so w/ 8% initial inflation, that would be 2M tokens for each first year, dropping thereafter). @ryoqun what exactly do you need to move forward besides these numbers?

[ryoqun]

@ericlwilliams I need specific hard-coded accounts to transfer the rewards for foundation and grant to like these: https://github.com/solana-labs/solana/blob/e556f85178af23873a778ddec88a98432b57e3c7/core/src/non_circulating_supply.rs#L58-L80

Maybe the accounts will be one of them, because the accounts should be regarded as non-circulating?

[ericlwilliams]

@ryoqun I see! Let me sync with @danpaul000 on this today and try to get those for you

[danpaul000]

@ryoqun will the foundation accounts receiving rewards be system accounts, or stake accounts? If system, does it matter if the account exists/is already funded or not?

[mvines]

It can be any account. The bank would just deposit the foundation rewards in that account. Also consider if we just want 1 account or multiple (and if multiple how do the rewards get split up between them)

[mvines]

Temporary plan for pico-inflation is to just set the foundation rate to 0% to bypass this entirely

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