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feat: add vested multiplier
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cdummett committed Aug 14, 2023
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6 changes: 3 additions & 3 deletions protocol/0056-REWA-rewards_overview.md
Original file line number Diff line number Diff line change
Expand Up @@ -209,7 +209,7 @@ Let:

- $d_{i}$ be the payout factor for entity $i$
- $r_{i}$ be the reward metric value for entity $i$
- $M_{i}$ be the sum of all reward payout multipliers for entity $i$
- $M_{i}$ be the sum of all reward payout multipliers for entity $i$ (reward payout multipliers include the [activity streak multiplier](./0086-ASPR-activity_streak_program.md#applying-the-activity-reward-multiplier) and [vested rewards multiplier](./0085-RVST-rewards_vesting.md#determining-the-vested-bonus-multiplier)).
- $s_{i}$ be the share of the rewards for entity $i$

$$d_{i}=r_{i} M_{i}$$
Expand All @@ -234,7 +234,7 @@ Let:
- $s_{i}$ be the share of the rewards for entity $i$
- $k$ be the decay factor specified in the recurring transfer funding the reward
- $R_{i}$ be the rank of entity $i$
- $M_{i}$ be the sum of all reward payout multipliers for entity $i$
- $M_{i}$ be the sum of all reward payout multipliers for entity $i$ (reward payout multipliers include the [activity streak multiplier](./0086-ASPR-activity_streak_program.md#applying-the-activity-reward-multiplier) and [vested rewards multiplier](./0085-RVST-rewards_vesting.md#determining-the-vested-bonus-multiplier)).

$$d_{i}=e^{-k R_{i}} M_{i}$$

Expand All @@ -255,7 +255,7 @@ Let:
- $B_{i}$ be the total balance in all of the team members accounts (expressed in quantum)
- $F$ be the network parameter `rewards.teamDistribution.minimumAccountQuantum`
- $C$ be the network parameter `rewards.teamDistribution.maximumAccountQuantum`
- $M_{i}$ be the sum of all reward payout multipliers for entity $i$
- $M_{i}$ be the sum of all reward payout multipliers for entity $i$ (reward payout multipliers include the [activity streak multiplier](./0086-ASPR-activity_streak_program.md#applying-the-activity-reward-multiplier) and [vested rewards multiplier](./0085-RVST-rewards_vesting.md#determining-the-vested-bonus-multiplier)).

$$d_{i} = \begin{cases}
0 &\text{if } B_{i} < F \\
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31 changes: 31 additions & 0 deletions protocol/0085-RVST-rewards_vesting.md
Original file line number Diff line number Diff line change
Expand Up @@ -8,6 +8,7 @@ The aim of the rewards vesting mechanics is to prevent farming rewards by delayi

- `rewards.vesting.baseRate`: the proportion of rewards in a vesting account which are vested each epoch, value defaults to `0.1` and must be a float strictly greater than 0.
- `rewards.vesting.minimumTransfer`: the minimum amount (expressed in quantum) which can be vested each epoch, value defaults to 100 and must be an integer greater or equal than `0`.
- `rewards.vesting.rewardPayoutMultipliers`: is an ordered list of dictionaries defining the requirements and multipliers for each tier.

## Vesting mechanics

Expand All @@ -21,6 +22,7 @@ Now, let:
- $B_{vested}$ be the total quantum amount in the vesting account
- $r$ be the network parameter `rewards.vesting.baseRate`
- $a$ be the account owners current [`activity_streak_vesting_multiplier`](./0086-ASPR-activity_streak_program.md#setting-activity-benefits)
- $b$ be the account owners current [`vested_rewards_vesting_multiplier`](./0086-ASPR-activity_streak_program.md#setting-activity-benefits)
- $m$ be the network parameter `rewards.vesting.minimumTransfer`

The quantum amount to be transferred from each "vesting" account to the relevant "vested" account is defined as:
Expand All @@ -29,6 +31,35 @@ $$T = max(B_{vesting} * r * a, m)$$

When transferring funds from the vesting account to the vested account, a new transfer type should be used, `TRANSFER_TYPE_REWARDS_VESTED`.

## Vested bonus

Once vested rewards are transferred to the vested account, the party will be able to transfer funds to their general account using a normal transfer.

Alternatively, they can leave their rewards in the vested account to receive a multiplier on their reward payout share. The size of this multiplier is dependent on the balance (expressed in quantum) in the vested account before rewards are distributed.

Note, a party will be unable to transfer funds in to the vested account.

### Determining the vested bonus multiplier

Before [distributing rewards](./0056-REWA-rewards_overview.md#distributing-rewards-amongst-entities), each parties `reward_distribution_vested_multiplier` should be set according to the highest tier they qualify for.

```pseudo
Given:
rewards.vesting.benefitTiers: [
[
{"minimum_quantum_balance": 10000, "reward_multiplier": 1.0},
{"minimum_quantum_balance": 100000, "reward_multiplier": 5.0},
{"minimum_quantum_balance": 1000000, "reward_multiplier": 10.0},
],
]
And:
vested_quantum_balance=145231
Then:
reward_distribution_vested_multiplier=5.0
```

## APIs

### Accounts API
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