Who is proposing:
P2P Validator | p2p.org
Currently 20% of MPOND is distributed based on the number of blockchain communities participating in FlowMint without taking a contributed locked value of each into account. It leads to unequal gains for stakedrop participants across blockchains.
We propose to change the formula of MPOND allocation to participating in FlowMint blockchains.
Currently, the highest share of TVL amongst participating blockchains belongs to Polkadot. However, due to the current distribution scheme one dollar of DOT receives > 44 less than one dollar in IRIS.
If we assume adding 10 new blockchains to FlowMint inequality of MPOND gains will increase even further. To equalize the amount of MPOND received per USD unit we propose to change the allocation formula.
allocation = daily_rewards / n, where n is a number of blockchains
allocation = daily_rewards * tvl_usd_share, where tvl_usd_share = blockchain_tvl / total_flowmint_tvl
This allocation scheme can balance stakedrop returns across blockchains according to their participation. TVL share can be recalculated on a daily (or weekly/biweekly, if daily is too cumbersome to maintain) basis being flexible to adding more blockchains to broaden the MPOND distribution to various crypto communities. Here you can find a spreadsheet with calcs.
- Equal MPOND distribution per locked USD unit based on participation
- Higher incentives for stakers of a particular network to take part in FlowMint as it proportionally increases allocated MPOND
- Provides a reasonable mechanism of MPOND distribution re-calculation in case of adding more blockchains to FlowMint and protects
- Protects against over dilution of existing participant in case of adding more networks
- Lower MPOND gains for participating blockchains with lower TVL comparing to the current state