I was wondering why losses are processed with a burn rather than putting NMR that would ordinarily be incinerated into a pot to be included as a source for payouts, thus delaying/reducing the payout reduction. It’s not as evocative a concept, but wouldn’t this maintain the “skin in the game” notion while being more healthy for the Numerai environment?
I was also thinking that the payout factor reduction and point that it kicks in should be dependent on stake size, and that having it drop in steps (e.g 1, 0.9, 0.8) if the stake is above a certain amount, or steps that scale based on the stake, might be a benefit. A pay to play concept for accounts with stakes above a certain threshold was another idea. My concern is that accounts with the largest stakes might unintentionally but ultimately do more harm than good to the environment, and a way to help mitigate this would be beneficial to all.
Indeed, that should be the consequence as long as the game remains attractive relative to those that come after Numerai.