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Update docs/src/implemented-proposals/staking-rewards.md
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Co-authored-by: Tyera <[email protected]>
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pandabadger and CriesofCarrots committed Dec 11, 2023
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Expand Up @@ -30,4 +30,4 @@ Solana's trustless sense of time and ordering provided by its PoH data structure

As discussed in the [Economic Design](ed_overview/ed_overview.md) section, annual validator interest rates are to be specified as a function of total percentage of circulating supply that has been staked. The cluster rewards validators who are online and actively participating in the validation process throughout the entirety of their _validation period_. For validators that go offline/fail to validate transactions during this period, their annual reward is effectively reduced.

Similarly, we may consider an algorithmic reduction in a validator's active amount staked in the case that they are offline. I.e. if a validator is inactive for some amount of time, either due to a partition or otherwise, the amount of their stake that is considered ‘active’ \(eligible to earn rewards\) may be reduced. This design would be structured to help long-lived partitions to eventually reach finality on their respective chains as the % of non-voting total stake is reduced over time until a supermajority can be achieved by the active validators in each partition. Similarly, upon re-engaging, the ‘active’ amount staked will come back online at some defined rate. Different rates of stake reduction may be considered depending on the size of the partition/active set.
Similarly, we may consider an algorithmic reduction in a validator's active staked amount in the case that they are offline. I.e. if a validator is inactive for some amount of time, either due to a partition or otherwise, the amount of their stake that is considered ‘active’ \(eligible to earn rewards\) may be reduced. This design would be structured to help long-lived partitions to eventually reach finality on their respective chains as the % of non-voting total stake is reduced over time until a supermajority can be achieved by the active validators in each partition. Similarly, upon re-engaging, the ‘active’ amount staked will come back online at some defined rate. Different rates of stake reduction may be considered depending on the size of the partition/active set.

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