Adjusting gas refund rates

PS Research
#1

I’d like to push forward the idea of a dynamic gas refund rate, indeed if you have 65k PSP then you could get 66% reimbursement, and 130k you would get 73%, that would incentivize stakers to hold and compound rather than just selling because next tier could be too far away. This calculation is based on ( LOG_10(PSP_Balance) - 2.2 ) * 0.25 with min 0 and maximum 1.

pspcharts
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This offsets a bit the reimbursement, meaning it’s a bit harder to reach the previous tiers, however it’s also easier to reach a compromise of the previous tiers.
So if you have 300k PSP that would mean you’d get reimbursed of 10% more refunds compared to the previous rewards, but it would lower a bit the rewards for people being just at the beginning of the tiers.

So this would incentivize to get more discounts by staking the earned rewards.

2 Likes
#2

Great to see this. I think not topping at 100% will create considerable savings for the protocol and allow this incentive to run for longer and benefit more people. (Also a 100% refund is much likelier to get abused)

2 Likes
#3

I really enjoy this suggestion, thank you for providing the data and graphs! Encouraging people to put their PSP back into staking for even a bit more benefits is always a good idea.

Just to build upon this idea, do you think we would need to adjust the existing levels to make this system more encouraging, or does it work with the current 500 to 500k scale? Also, pinging @sebastien-S3B , one of the gas refund masterminds to hear his thoughts about this!