Author Topic: Proposed Future DAC Delegate Pay Model  (Read 24753 times)

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Offline bytemaster

pay fee to delegate directly , how to motivate delegate include more translation ?

Votes and approval.
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Offline BTSdac

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pay fee to delegate directly , is there more way to motivate delegate include more translation
« Last Edit: September 29, 2014, 01:31:40 am by BTSdac »
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Offline arhag

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Is 100x enough? Maybe 200x would be better to give shareholders 56 hours (at least two full days) to respond.

Also, this has the same issue as the pay rate in that delegates need to commit to a pay schedule and it cannot be changed after being elected to dynamically respond to conditions. They would have to create and register a new delegate and get that one elected by shareholders to replace their old delegate.

What is your hesitation against a proposal system ratified by shareholder vote setting wages to workers (which in my view should be different than the delegates who should have a very limited technical role)? I can't imagine it is very hard to implement in the code. Is it because you think voter apathy will result in great difficulty in implementing changes when needed?  Is it a philosophical disagreement with the will of the majority overriding the desires of the minority (although the delegate system with approval voting doesn't actually fix that problem either)?

Offline bytemaster

I have been working through the delegate pay model that I recomend for future DACs including VOTE, MUSIC, DNS, etc.

It works off of the principle that shareholders have a right to dilute to raise capital and that the ability to dilute to raise capital ultimately maximizes shareholder value by allowing rapid growth through many rounds of funding.

1) 100% of all fees are burned. 
2) Delegates can set any fee per block they like measured in XTS (BTSX, VOTES, etc)
3) The cost to register a delegate with a "high fee" is equal to 100x the fee-per-block they want to get paid. 

With this system a delegate must produce at least 100 blocks to break even.  It also naturally limit potential abuses because the cost of registering a HIGH PAY delegate will be VERY HIGH while the probability of getting elected will be very low.  The person registering the HIGH PAY delegate will also lose out on the ability of using their own shares to vote for themselves. 

For starters no one would be able to register a delegate that would pay 2 billion BTSX per block because the cost would be 200 billion BTSX (which don't exist).   This puts a limit to what one could attempt to register to be 20 million BTSX per block... assuming they owned all 2billion BTSX... if we assume the largest stakeholder owns 10% of BTSX and the use 100% of their stake to register a high paying delegate then the maximum pay per block would be 2 million and they would have no stake left to vote for themselves.   

Assume someone used 1% of the BTSX to register their delegate at a pay rate of 200K BTSX per block it would take them over 28 hours to break even during which the rest of the shareholders could coordinate their votes to get them ousted if they didn't consent.

With this setup the DACs can fund development in a decentralized manner for their entire lifetime. 

One thing I would like to mention is that there is a "HARD" limit on the share supply based upon limits of 64 bit numbers and the precision. 

« Last Edit: September 29, 2014, 02:25:59 pm by bytemaster »
For the latest updates checkout my blog: http://bytemaster.bitshares.org
Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.