Summary
Change the ETH Plus (ETH+) Reward Ratio from 2 weeks to 1 week.
From
2 Weeks: 0.000000534833333333
To
1 Week: 0.000001069666666666
Abstract
This RFC proposes changing the ETH+ reward distribution period from 2 weeks to 1 week, altering the reward ratio from 0.000000534833333333 to 0.000001069666666666. By moving to a 1-week distribution period, the protocol aims to establish a more sustainable and equitable reward system that ensures consistent reward flows and enhances long-term participation. This adjustment is designed to better align the protocol’s incentives with its goals of stability and fairness in the staking ecosystem.
Problem Statement
The current reward distribution mechanism is set to distribute rewards over a period of 2 weeks corresponding to a reward ratio of 0.000000534833333333. The current model is too rigorous and reduces the reward distribution Early stakers may not be adequately incentivized, and the fast-paced distribution could cause inefficiencies in the reward system, impacting long-term user engagement and the stability of the protocol’s incentive structure.
Rationale
The proposed change to extend the reward distribution period from 2 weeks to 1 week is driven by the need to create a more sustainable and equitable reward system within the protocol. The current rapid distribution schedule may lead to inefficiencies and diminish the incentive for early stakers, as rewards are quickly diluted with the influx of new participants. By slowing the distribution pace, the protocol can ensure a more consistent reward flow, enhancing long-term engagement and better aligning with the overall objectives of stability and fairness in the staking ecosystem.
By transitioning to a new reward ratio of 0.000001069666666666, which corresponds to a 1 week distribution period, This will create a more balanced and sustainable reward system that better aligns with the protocol’s long-term objectives.
Risks
One potential risk is that it could introduce opportunities for people to stake, get yield, and then unstake. However, this is unlikely to be profitable with the 2 week unstaking delay.
- I am in favor of changing the reward ratio
- I am NOT in favor of changing the reward ratio