Skip to content
New issue

Have a question about this project? Sign up for a free GitHub account to open an issue and contact its maintainers and the community.

Sign up for GitHub

By clicking “Sign up for GitHub”, you agree to our terms of service and privacy statement. We’ll occasionally send you account related emails.

Already on GitHub? Sign in to your account

Jump to bottom

docs: update community tax to 2% #614

Merged
merged 2 commits into from
Jan 12, 2023
Merged

docs: update community tax to 2% #614

Changes from all commits
Commits
Show all changes
2 commits
Select commit Hold shift + click to select a range
dab29c6
docs: update community tax to 2%
youngjoon-lee Jan 11, 2023
795326a
Update .gitbook/validators/faq.md
Jan 12, 2023
File filter

Filter by extension

Filter by extension
Conversations
Failed to load comments.
Loading
Jump to
Jump to file
Failed to load files.
Loading
Diff view
Diff view
25 changes: 14 additions & 11 deletions .gitbook/validators/faq.md
View file
Open in desktop
Original file line number Diff line number Diff line change
Expand Up @@ -215,11 +215,14 @@ This mechanism aims to incentivize non-empty block proposals, better networking
Let's take a concrete example to illustrate the aforementioned concept.
In this example, there are 10 validators with equal stake.
Each of them applies a 10% commission rate and has 20% of self-delegated MEDs.
Now comes a successful block that collects a total of `1005 MEDs` in fees.
Now comes a successful block that collects a total of 1025.51020408 MED in fees.

First, a community tax is applied, but it is `0%` on the Panacea for now.
First, a 2% tax is applied. The corresponding MED go to the reserved community pool.
The community pool's funds can be allocated through governance.

So, the full of `1005 MEDs` are distributed to validators and delegators.
- `2% * 1025.51020408` = 20.51020408 MED go to the community pool

1005 MED now remain to be distributed to validators and delegators.
Let's assume that the proposer included 100% of the signatures in its block. It thus obtains the full bonus of 5%.

We have to solve this simple equation to find the reward `R` for each validator:
Expand All @@ -230,16 +233,16 @@ R = 1005/10.05 = 100
```

- For the proposer validator:
- The pool obtains `R + R * 5%`: 105 MEDs
- Commission: `105 * 80% * 10%` = 8.4 MEDs
- Validator's reward: `105 * 20% + Commission` = 29.4 MEDs
- Delegators' rewards: `105 * 80% - Commission` = 75.6 MEDs (each delegator will be able to claim its portion of these rewards in proportion to their stake)
- The pool obtains `R + R * 5%`: 105 MED
- Commission: `105 * 80% * 10%` = 8.4 MED
- Validator's reward: `105 * 20% + Commission` = 29.4 MED
- Delegators' rewards: `105 * 80% - Commission` = 75.6 MED (each delegator will be able to claim its portion of these rewards in proportion to their stake)

- For each non-proposer validator:
- The pool obtains `R`: 100 MEDs
- Commission: `100 * 80% * 10%` = 8 MEDs
- Validator's reward: `100 * 20% + Commission` = 28 MEDs
- Delegators' rewards: `100 * 80% - Commission` = 72 MEDs (each delegator will be able to claim their portion of these rewards in proportion to their stake)
- The pool obtains `R`: 100 MED
- Commission: `100 * 80% * 10%` = 8 MED
- Validator's reward: `100 * 20% + Commission` = 28 MED
- Delegators' rewards: `100 * 80% - Commission` = 72 MED (each delegator will be able to claim their portion of these rewards in proportion to their stake)

### What are the slashing conditions?

Expand Down