REP-16: Staking Rewards Taxation Adjustment

RSS3 Evolution Proposal
1

Hi all,

The Core Devs have gained some new insights from the Mainnet Alpha, so we are proposing some changes here.

Taxation T should depend on Operation Pool P_o instead of Deposit D

We realized that the taxation could have been simplified and improved. It is actually much easier if we just use P_o (improve legibility, reduce smart contract complexity) for calculating the taxable amount. In practice, P_o's growth depends on R_s, and D is stored in P_o anyway.
So we are proposing to update the Whitepaper and therefore change the taxation rules:

Current formula:

D_{N} * 25 \geq T_{N,\epsilon} \quad \text{where} \quad D_{N} \geq 10,000

Proposed formula:

P_{o} * 25 \geq T_{N,\epsilon} \quad \text{where} \quad D_{N} \geq 10,000

It is worth remembering that, the Operator can always add more deposits into P_o to increase the taxable amount. Whether the formula is satisfied or not, all stakers will always receive rewards (P_s will grow regardless).

The proposed change is not detrimental to any participants. An REP will be drafted soon.

5 Likes
2

REP has been drafted!

3 Likes