Tweak Polkadot's Ideal Staking Rate
in preparation for the crowdloan unlock on October 24th, as discussed in this forum post, it was concluded to propose slightly increasing the ideal staking rate in Polkadot, such that the network can accommodate the new DOT that is being unlocked into the staking system, without reducing staking rewards.
In short, what this proposal does is:
For the current situation, the ideal staking rate would then be calculated as: 0.75 - min(45,60)/300 = 0.6, i.e., 60%.
You can find the full steps to reproduce the proposal in https://hackmd.io/ykunWzXYR-Kaz_cM2KNIlg. It is merely a 1 liner change to the former Polkadot runtime that was version 9430.
The enactment time is set to this block, which is roughly 2 days before the funds unlock from crowdloans.
The corresponding fellowship referendum to whitelist the call is https://collectives.polkassembly.io/member-referenda/24.
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For more clarity, this proposal aims at an integration of an optimal staking rate adjustment into a new runtime derived from version 9.34. Specifically, a distinct release is planned for Polkadot that is separate from the fellowship runtimes. This is specially designed to coincide with the crowdloan unlock event scheduled for October 24th.
As of now, the current formula determines the
auction_proportion, which is then subtracted from the fixed value of 75% to obtain the ideal staking rate. An easy intervention would be to change the calculation.The formula is currently:
let auction_proportion = Perquintill::from_rational(auctioned_slots.min(60), 200u64);An immediate revision could be:
let auction_proportion = Perquintill::from_rational(auctioned_slots.min(60), 300u64);In that configuration, the variable
auction_proportionis calculated as the minimum of theauctioned_slots(which are all parachains with ID >= 2000) and 60, divided by 300. The ideal staking rate is then 75% minus theauction_proportion. For the current situation, the ideal staking rate would then be calculated as 0.75 - min(45,60)/300 = 0.6, i.e., 60%.What's the point of designing a system with disincentives (in this case, rewards going down when staking rate is >50%) if you just move the marker for where the disincentives start once you get close to it? Just throw out the whole system if you don't like it.
This change will also likely have a negative effect on DeFi in the Polkadot ecosystem, and increase selling pressure.
Very much NAY, there is 0 benefit to the ecosystem, and multiple negatives.