I’ve notice that we have started down the steep slope of the payout factor curve. I feel like any token economy wants about half of the circulating supply at stake but that brings the payout factor to 0.12. Now if you’ve got a top dog model averaging 5% CORR every week, that’s still a nice 36% yearly return on stake, but if you’re floating around 2% CORR that’s only 13% return which you can get within many alt-coin ecosystems without having to create a machine learning model.
Wouldn’t it make more sense to push the decline of the payout factor further down (say, 1 million NMR instead of 300K NMR) and put a max on the amount someone can stake? This would control the supply better since compounding interest on re-staked NMR runs away a lot faster than the rate of decrease on the payout factor curve.
But I guess the obvious work-around would be to create a bunch of different accounts… It’s just looking like this tournament is going to have a huge wealth disparity when we reach the max number of NMR that can be minted. Any ideas on how to keep this machine alive for longer? Is the answer in Signals?