Okay, so first of all, I realize now that I’ve been careless in the words I’ve used, and I apologize for that. I used the word “rewards” when what I was talking about was “baking power” instead. This is an old habit from before Paris when rewards were directly correlated to baking power and basically nothing else.
I immediately staked as much of my balance as I could and configured my baker to accept 5x external stake, but my baking power still dropped to less than 60% of what it was prior to Paris. That’s not as bad as half–meaning I made some broad generalizations and rounding–but it’s still much worse than I’d like!
Now let’s examine your statement that the new values in Paris can’t hurt me.
Before Paris:
- Delegation was worth 100% baking power and could be 10x of your balance. 10x100% == 10x
Starting with Paris:
- Staking is worth 100% and can be up to 5x of your staked balance. 5x100% == 5x
- Delegation is worth 50% and can be up to 10x of your balance. 10x50% == 5x
So yes, the limits of staking and delegation are equal to each other in terms of baking power. But that’s still half (each) of what it was before Paris. The only way to have the same maximum baking power you had before Paris is to be at the limits of both staking and delegation.
This means starting with Paris you need to retain all of your delegated balance and gain an additional 50% as much staking balance as you have delegated balance in order to break even in terms of baking power.
If you eliminate the value (in terms of baking power) of delegations in an effort to chase more staking you will only attain up to 50% of the max baking power you had prior to Paris. You’re robbing your left hand to pay your right hand.
I don’t understand that.
Before Paris:
- My “entire stack” was always worth 100% baking power regardless of delegations.
- This included liquid funds placed in a hot wallet to pay delegators.
Starting with Paris:
- Only my staked balance is worth 100% baking power.
- My liquid funds placed in a hot wallet for payouts are worth only 50% baking power.
- Any leftover rewards earned from delegations are worth only 50% baking power unless I manually stake them.
As shown above, my baking power is in fact reduced starting with Paris. The only reason I am earning more rewards right now is because the rate of issuance went up due to low overall staking during this transition period. While the current increase in rewards is nice, I see it as temporary because I believe that Adaptive Issuance will achieve its long-term goal, especially as it fully goes into effect over the next few months. Meaning I believe staking will reach the ~50% target and issuance will go down to ~1% at most (when this proposal for Quebec goes through).
Hopefully I’ll get more externally staked funds by then to help bring my baking power back up to pre-Paris levels. But if the delegations disappear then I’ll still only have at most 50% of the baking power I could have had before Paris went into effect.
I agree with you that what you want is self-sabotage. What you seem to be saying is that you will only go through with it if you can force everyone to be sabotaged equally. What I am saying is don’t force it on me!
