One more new proposal.
(Forgive me for saying what I want, even though I am not a developer.)
The problem with rewarding dApps in v3 is that if you are not even slightly short of the Tier threshold, your reward will not increase. For example, to go from Tier 4 to Tier 3, you need to get 10x the ASTR, and if you fall even slightly short, there will be a huge sense of loss for everyone involved. This may not be good for the developer, nor for the supporting Staker.
This third proposal, in addition to yesterday’s proposal, makes a bolder change.
It is to make the mechanism for generating rewards for v2 and v3 dApps a hybrid.
To make it easier to visualize, I will present a diagram first.
In the current tier model, the amount of compensation is fixed for each tier. In the hybrid tier model proposed here, a reward cap will be set for each tier, and the amount of reward will change dynamically (linearly). This ensures that Stake is not wasted until the Tier 1 cap is reached, and the efforts of the developer and community are rewarded.
Advantage
- Reduces disparity between tiers
- For developers and the community, there is an incentive to collect Stake up to the Tier 1 limit
Disadvantages
- Less burn than the current model
- Less incentive to move up a tier.
(However, as noted in the advantages, the incentive to collect Stake is considered stronger)
In this model, the parameters are set as follows to make the amount of reward as close as possible to the amount of reward in the current model. With this parameter setting, you will get a reward close to current Tier when PJ get the same TVL as the threshold of current Tier.
*The APR in the table is the value when the threshold is at its maximum. It is not important as it is only a guide.
Slot Portions
Tier1: 5% → 5%
Tier2: 20% → 15%
Tier3: 30% → 30%
Tier4: 45% → 50%
Reward Distribution
Tier1: 25% → 25%
Tier2: 47% → 35%
Tier3: 25% → 25%
Tier4: 3% → 15%
Threshold
Tier1(Limit): 200M - 300M
Tier1: 50M - 75M
Tier2: 15M - 20M
Tier3: 4.5M - 6M
Tier4: 1.5M
Tier Zone
Tier1: 50~200M↑ - 75~300M↑
Tier2: 15~50M - 20~75M
Tier3: 4.5~15M - 6~20M
Tier4: 1.5~4.5M - 1.5M~6M
Currrent Model
The simulation of the reward from this is shown here.
Thresholds are calculated using the current (lowest) value.
In the simulation, the amount of rewards and burns varied as follows
- Rewards(q/Era): 34,620.47 → 47,812.13 (+13,191.66 | +38.10%)
- Burn(q/Era): 173,996.42 → 160,804.76 (-13,191.66 | -7.58%)
However, I do not believe that the current situation where the threshold is set at its lowest value is the best situation. This is because the threshold is calculated to go down as dApps listings increase. This does not work because it is more likely to increase than decrease. Therefore, we will re-set the threshold to the highest value and run the simulation.
In this simulation, the amount of rewards and burns varied as follows.
- Rewards(q/Era): 34,620.47 → 39,352.76 (+4,732.29 | +13.67%)
- Burn(q/Era): 173,996.42 → 169,264.13 (-4,732.29 | -2.72%)
We believe this will result in a fairer system with minimal impact on inflation.
v3 is a revolutionary update that solves many of the problems of v2 and also has the effect of reducing ASTR inflation. However, the current situation seems to favor the holder (staker) too much. Astar is a chain that originally favored developers, and many community members must be proud of that. I hope that the system will be balanced for both developers and holders.