This thread was derived from dApp Staking v3 - proposal.
The hybrid model and other methods proposed for the purpose of improving the current Tier system will be discussed.
Algorithms, not specific compensation amounts or parameters, are the subject of the discussion.
Background
The current Tier system is a fair system whereby a certain reward can be earned by exceeding a certain threshold. However, this system creates a kind of unfairness: “If the threshold is not exceeded, the evaluation is the same no matter how many Stakes are collected”. “Fairness” and “Impartiality” do not necessarily go hand in hand.
This system itself was proposed more than a year ago, and enough time has been spent on it. However, it is true that some dissatisfaction arose in the implementation of the system. Therefore, I proposed a hybrid model that combines dynamic rewards in v2 and fixed rewards in v3.
Hybrid Model
In the hybrid model, a range of rewards is set for each slot in each Tier. It is set per slot and is not affected by the stake amount of other dApps (except for the Tier up or down due to slot limits).
Currently, once a specific Tier is reached, the amount of reward does not change until the next Tier is reached, but in this model the reward will increase until the Tier 1 limit is reached (if the stake decreases, the reward will also decrease). Also, if the Tier falls by a small margin, the amount of reward will not decrease drastically.
We believe that this allows for “Fairness” and “Impartiality” to cohabitate.
Problem
- On-chain logic should be made as simple as possible.
This proposal will certainly be more complex than the current reward logic. It is preferable to make the logic as simple as possible, as this will reduce the burden on the blockchain.
Specifically, we currently only generate a fixed reward for each Tier slot, but we need logic to dynamically calculate the amount of reward.
Rewards for dApp with Tier A =
TierA minimum reward + (TierA maximum reward - TierA minimum reward) / (TierA+1 threshold - TierA threshold) x (dApp current Stake - TierA threshold)
- The amount of distribution is expected to increase from the current level
(but the maximum amount will remain the same)
While 2 is not considered a problem since it is within the range of adjustable parameter settings, 1 is very important. Discussion by developers is needed.
*Sorry, I am not a developer.
Compromise and short-term solutions
One way to implement a pseudo-hybrid model without changing the logic significantly is to "massively increase the number of tiers. However, this is not considered optimal because it does not solve the problem fundamentally and requires an increase in Portal display.