I largely agree with @Val’s take on the matter. But if doing nothing until we can get more extensive research done first seems too extreme, then I also agree with @tokyo_on_rails’s assessment that the falloff is too gradual near the target and doesn’t truly incentivize increasing stake once the ratio surpasses about 30-35%. I suggest to rotate the proposed curve 180 degrees. Something like this (black curve):
This way the incentive to increase stake remains high while the current ratio is far off from the target ratio. But if the current ratio is already near the target ratio, incentive will either greatly increase as the ratio falls, or will quickly decrease as it approaches (or surpasses) the target ratio.
