Should we lock payout of rewards for a year?

In the forums was written that rewarded TFT only unlock after 1 year staking.

In other words, you would be rewarded all your TFT but would loose them if you would not stake for at least one year.

This was written in both forum posts about L0 and L2 validators.

please give us your feedback

  • is this the right thing to do or not?
  • there should probably be a minimal loyalty, are there other ways how to achieve the same, or better to forget
  • technical: how difficult is this, it sounds complicated

Any other feedback

Thank you

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My understanding is that the reasoning is to prevent validators from disappearing suddenly leaving the entire network unstable if too many validators went offline at the same time?

How about a1 month un-staking time? Then have a “whitelist” queue of replacement folks that want to run validators. This way validators that want to pull out will be incentivized to remain for 1 month while a spot opens up to let others replace them?

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  • is this the right thing to do or not?
    I think not
  • there should probably be a minimal loyalty, are there other ways how to achieve the same, or better to forget
    5 days downtime? The reason on this is because sometimes power outage, hardware changes, busy with life and real work? For me I check my node every 3 days to make sure it’s up and running.

I agree with @tackrack a month, 1 year? a lot things can happen i.e. power outages, hardware changes etc…

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Scott has a bot that can let you know if a node goes down, this could help with reducing downtime

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Thanks, Do I need to install that seperate or already installed? or simply just checking it on the portal?

It helps reduce downtime since you know it is down. But it can’t help if you get a power outage or lose internet cause a provider is upgrading their network.

  • is this the right thing to do or not?

I don’t believe this is the right thing to do. There are different reasons why people would want fewer lockout periods. People could be using the staking reward as a source of income that they need and locking them out of it for a year can cause financial difficulties. Another reason is that locking the reward for a year will increase a giant sell pressure when it is unlocked, which can be bad for the price. I think locking it for a week would be most ideal. It will let people take out the reward if needed to sell it if they choose or stake the reward to earn more TFT.

  • there should probably be minimal loyalty, are there other ways how to achieve the same, or better to forget

Yea it should, I think a 1-week lock is a perfect time, we can add loyalty by incentivizing to hold longer by upping the potential reward. If they lock It for a month plus, they earn 3% extra TFT. This will solve the loyalty problem.

  • technical: how difficult is this, it sounds complicated

I don’t think it is difficult but we will need to rework the code if we decided to give them extra tft for holding longer than a month.

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Since this rule is very strict in storj and siacoin projects, most nodes leave it after they are established. algoritma must be completely different from these. In general, when human psychology proves an effort, it immediately wants to see it, at least to see it. it would make sense if every monthly reward unlocked at the end of the next month

It’s on telegram not sure how I added it

I think you missed an important point:
These questions are stated in regards of staking TFT in order to receive rewarded TFT payout after one year.
It was NOT in regards to uptime/downtime of a particular node and its amount of rewarded TFT.

  • is this the right thing to do or not?
    Yes and no. We should have reliable mid/long-term validators. We should not punish validators who must opt out of staking their TFT - there are legit reasons.
  • there should probably be a minimal loyalty, are there other ways how to achieve the same, or better to forget
    Minimal loyalty should be low but substantial eg.: 3 months. The way the same could be achieved is by incentivising longer staking periods. This could mean two or three models to pick from in the beginning of the staking:

1. As proposed: One year staking required for full payout.
2. Minimal Loyalty is “insert number (maybe three)” months and staking can be ended after 1 month cancellation period. This model rewards less but is aso more flexible.
3. The longer TFT remains staked the more rewards become unlocked.
After three months first 10% of rewards unlock. Between 3 to 12 months you can unlock rewards up to 50%. After one years 100% rewards are unlocked. After 3 Years additional rewards get split, taken from those validators who didn’t unlock 100%

  • technical: how difficult is this, it sounds complicated
    Not difficult at all, can all be written in smart contract and described in our Knowledge base including examples
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my bad sorry… now I understand should’ve read it more. I’m new to threefold.

1 Like

Details on the status bot here (although uptime is indeed not a factor in the subject of this thread): Announcing the node status bot for Telegram