Hi NEAR Family.
- UBI make possible to have a more fair model of rewards.
- UBI allows small validators to have enough resources to run.
- Validators with big stake still can take advantage of this.
Current rewards model motivates to have centralized nodes and put small node runners in a complex situation where they don’t have enough to payment hardware costs.
Based on the work done on the NEAR Validators Working Group and in the experience from Meta Pool I want to propose the rewards model to a Universal Basic Income rewards model, where every node receives an equity from the total of rewards.
Based on this model we can ensure that bottom validators with at least 5% of fee have enough resources based on current market conditions, that are properly of a bear market. This is a simulation of how much fee will be covered by bottom validators with a UBI of 10% of the rewards from the whole network.
Other rewards models explored: Taxed rewards model
The Taxed rewards model cover a tax to centralized nodes and distribute that into small validators.
Also a mixed version of taxed + UBI can be done:
- This solution is not a final solution and can evolve, any comment is welcome, that’s why we are here
- Centralized nodes can still take advantage of this making multiples nodes if they have a way to automatize the node operation.
- Even then, if our target is to support small runner we can achieve that goal with this model.
- Is this possible? To change the rewards model. CCP Pagoda Team @Bowen @george_NEAR
- Would be a problem to have multiple nodes being runned by the same entity? Thinking on big validators that could split their staking in multiple small nodes to request UBI/Rewards from taxes
Tagging some people that could be interested on this: @satojandro @denysk @bchurn @DDeAlmeida @illia @David_NEAR @blaze
Documentation: Presentation and sheets with simulations