Proposal: [ADD] Make Node rewards relative to bond
- Currently, rewards are split evenly between all validators (taking into account each individual node's slash points). This may disincentivize NOs to bond their dormant RUNE into currently active validators.
- By making node rewards relative to bond, NOs will be incentivize to bond as much as possible.
- However, the proportional rewards should not be uncapped, as this could incentivize massive nodes that would eat up the majority of the rewards. Additionally, if a massive node left it would cause a swift reduction in network security, which should be avoided.
Proposed rewards calculation and effective bond hard cap:
- Hard cap a node's "effective bond" at (validatorMaxRewardRatio = 3) * (minimumBondInRune = 300,000) = 900,000. If a node's bond is greater than the cap, its effectiveNodeBond will be set to the cap (900,000)
- The hard cap of effective bond would mean NOs would stop earning more rewards as their bond grows over 900K, incentivizing them to run multiple nodes. The
validatorMaxRewardRatio
could even be set lower.
Proposed reward formula:
nodeRewards = ((effectiveNodeBond / totalEffectiveBond) * totalRewards) * (totalBlocksSinceChurn - slashPts / totalBlocksSinceChurn)
Edited by Eridanus (9R)