2.7 KiB
Distribution
Overview
Collected fees are pooled globally and divided out passively to validators and delegators. Each validator has the opportunity to charge commission to the delegators on the fees collected on behalf of the delegators by the validators. Fees are paid directly into a global fee pool, and validator proposer-reward pool. Due to the nature of passive accounting whenever changes to parameters which affect the rate of fee distribution occurs, withdrawal of fees must also occur when:
- withdrawing one must withdrawal the maximum amount they are entitled too, leaving nothing in the pool,
- bonding, unbonding, or re-delegating tokens to an existing account a full withdrawal of the fees must occur (as the rules for lazy accounting change),
- a validator chooses to change the commission on fees, all accumulated commission fees must be simultaneously withdrawn.
The above scenarios are covered in triggers.md.
The distribution mechanism outlines herein is used to lazily distribute the following between validators and associated delegators:
- multi-token fees to be socially distributed,
- proposer reward pool,
- inflated atom provisions, and
- validator commission on all rewards earned by their delegators stake
Fees are pooled within a global pool, as well as validator specific proposer-reward pools. The mechanisms used allow for validators and delegators to independently and lazily withdrawn their rewards. As a part of the lazy computations adjustment factors must be maintained for each validator and delegator to determine the true proportion of fees in each pool which they are entitled too. Adjustment factors are updated every time a validator or delegator's voting power changes. Validators and delegators must withdraw all fees they are entitled too before they can change their portion of bonded Atoms.
Affect on Staking
Charging commission on Atom provisions while also allowing for Atom-provisions to be auto-bonded (distributed directly to the validators bonded stake) is problematic within DPoS. Fundamentally these two mechnisms are mutually exclusive. If there are atoms commissions and auto-bonding Atoms, the portion of Atoms the fee distribution calculation would become very large as the Atom portion for each delegator would change each block making a withdrawal of fees for a delegator require a calculation for every single block since the last withdrawal. In conclusion we can only have atom commission and unbonded atoms provisions, or bonded atom provisions with no Atom commission, and we elect to implement the former. Stakeholders wishing to rebond their provisions may elect to set up a script to periodically withdraw and rebond fees.