anderselowsson.bsky.social
@anderselowsson.bsky.social
Validators might congregate at sizes that produce the best risk-adjusted rewards and the protocol’s priorities might change with consolidation level. For these reasons, validators can as an alternative be given an f2 based on their position in a sorted list of validator sizes.
January 26, 2025 at 1:55 PM
The force distribution f2 is unique to each validator and varies with activity rate or size or both. It distributes the collective f1 across the validator set through f1*f2 to produce individual incentives. Several options are reviewed in the post, a summary plot shown here.
January 26, 2025 at 1:55 PM
It consists of the two shape variables f1 and f2 in the range 0-1 and the scale variable f_y. The combined incentive attenuates the yield by f1*f_y(c+f2). The consolidation force f1 is the same for all validators and varies with consolidation level, i.e., validator count V.
January 26, 2025 at 1:55 PM