GP006: Desharding and Balancing Miner Rewards

@rrw1000

  1. If we call GetMinerInfo on the latest DS Block, we will find out that there are only 180 nodes in the DS committee instead of 600. But in the reality 600 nodes run the consensus. The reason is that 420 nodes are actually guard nodes that are operated by Zilliqa Foundation and because of that not displayed in the API response.
    Currently, out of 2400 nodes, 420 nodes are not rewarded so Miners are left with (1980 / 2400) 82.5% of nodes. While after the upgrade, miners would be able to operate only 180 nodes which is (180 / 600) 30% of nodes. It account to 82.5% / 30% = 2.75x drop in All Miners revenue. Even the proposal states that it compensates miners with increased DS nodes rewards, in the reality it decreases the reward by almost 3 times.
    Please, don’t get me wrong. The idea of getting rid of hundreds thousands dollars spending on Shard Nodes is fascinating. But please, consider decreasing guard nodes number to compensate for the loss or increase the rewards proportionally.

  2. As I mentioned in the next topic, GP-007 is possibly decreasing security because there is no penalty for malicious action(or just inactivity — downtimes are always possible) for staking nodes: GP007: Hybrid Consensus - #7 by vp_ezil

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