Strategy governance
How Delegators affect the pool's stake distribution strategy
Please note: This mechanism is NOT being used at the moment, as the formulas and technology are undergoing some final testing.
When staking, each delegator may participate in determining the Pool's general disposition in terms of the importance of higher APR vs. good of the network.
A slider control in the web app sets an input parameter which is then merged by the Stake Pool with the same parameters set by all other users. It produces the coefficient U which is a number in the range of –5 to +5. At –5, the Pool would maximize APR, and at +5 it would prioritize the good of the network over direct rewards.
We use a basic sigmoid function to calculate the D coefficient which directly affects the respective weights of A and N coefficients (as described here):
Sigmoid curve
The resulting D values range from about –0.99 to 0.99. The resulting parameters (1 – D/2) and (1 + D/2) used in the final score calculation formula range from about 0.5 to 1.5, which means that, at the extreme ends, the ratio between the weights of A and N can reach 3:1.
Last modified 1yr ago