Stake Pool Channels

A robust incentive mechanism that drives adoption and promotes decentralization

Never before in human history have we had people operating from so many different paradigms all living alongside each other. The same is true for organizations.[citation].

Adoption is a sphere in Use Case Space. Where r = 0 => no adoption, and r = ∞ => complete adoption The rate of Adoption is Δ r = 0 => stable Δ r = > 0 => increasing Δ r = < 0=> decreasing Decentralization λ ∈ [0:1] where 0 = centralized and 1 = decentralized Praesent a dolor leo. Duis in felis in tortor lobortis volutpat et pretium tellus. Vestibulum ac ante nisl, a elementum odio. Duis semper risus et lectus commodo fringilla. Maecenas sagittis convallis justo vel mattis. placerat, nunc diam iaculis massa, et aliquet nibh leo non nisl vitae porta lobortis, enim neque fringilla nunc, eget faucibus lacus sem quis nunc suspendisse nec lectus sit amet augue rutrum vulputate ut ut mi. Aenean elementum, mi sit amet porttitor lorem ipsum dolor sit amet, consectetur adipiscing elit. Lorem ipsum dolor sit amet nullam consequat feugiat dolore tempus.

I run a small stake pool, do we suffer from CP?

Everyone suffers from CP. But it depends on the Depending on the centralization of the stake pools you delegate to more than more decentralized ones. The filaments

How does SPC delegation work

Participants can delegate their stake to SPCs directly or through stake pool delegation. Stake Pool operators can delegate part or all of their rewards to SPCs.

Will I get rewards when staking only to SPCs?

Yes.

What are the yields for staking at SPCs?

Same as with stake pools.

How are SPCs and SPs different?

SPCs don't produce blocks and have no stake. SPCs are delegation relays. The way they contribute to PoS blockchains is by further incentivicing decentralization.

What is the role of a Stake Pool Channel

The role of an SPC is to introduce staking channels between Stake Pools. The hypothesis is that this will create a robust incentive mechanism that promotes decentralization and leads to faster adoption.

SPC Whitepaper

As 3rd generation blockchains begin to emerge, we see the number of use cases grow. The volume of this Use Case Sphere is increasingly encompassing the domain of Information Theory [1], Data Science [2] and Finance [3], the Arts [4] and Humanities [5] and (eventually) Government <[6] and Law [7]. (Consequences?)

While bringing more and more participants into the environment (Adoption) the density of technical knowledge at the boundary of Use Case Space decreases inversly proportional to r. This introduces a kind of dark energy to the system causing a slower rate of adoption for individuals entering the orbit of decentralized organizations which ultimatley leads to lower trust within the system [citation needed]. The consequence of this dynamic on the system's evolution is detrimental since every new participant contributes to the growth of Suc, decreasing the system's Kb, thereby adding noise to the system. This paper proposes a mitigation strategy for this dynamic.

To drive adoption (increase Suc) and maintain a decentralized organizational structure (prevent Kb decrease), we propose an Extended Reward Sharing Scheme (eRSS) through Stake Pool Channels (SPC). An (incentivized structure / operational framework / protocol enhancement proposal?) - expanding on the Reward Sharing Schemes for Stake Pools [pdf] - aimed to incentivize and support the creation of Teal organizations around Stake Pools. [pdf].

We propose the Extended Reward Sharing Scheme - a robust incentive mechanism that drives adoption and promotes decentralization through the creation of Stake Pool Channels. We proof that the formation of SPCs mitigates the effect of Kb, leading to an increased rate of adoption.

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