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docs: update community tax to 2% #614

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Jan 12, 2023
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docs: update community tax to 2% #614

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docs: update community tax to 2%
youngjoon-lee Jan 11, 2023
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Update .gitbook/validators/faq.md
Jan 12, 2023
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25 changes: 14 additions & 11 deletions .gitbook/validators/faq.md
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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 MEDs go to the reserved community pool.
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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?

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