Mathematical proof that LB hides a redistribution of wealth TAX & new proposal with baker reimbursement

[tezoswakenbake]

@Haxerol

But didnt we agree above that LB might bring up to +10% rewards for bakers, if those numbers hold?

1. That’s at the cost of security loss due to 7% of the rolls being transferred from bonds to liquidity baking contract? Assuming all the 7% figure are rolls from bakers.

2. What if the 7% of rolls are actually non-bakers rolls (delegators)? Wouldn’t that REDUCE the pie of the block rewards because all bakers kept baking, and no baker used his rolls to provide liquidity? Ideally, it would be better that they were all non-baker rolls, so a loss in security does not occur, but then the pie of the block rewards would be reduced?

[Haxerol]

@tezoswakenbake

What if the 7% of rolls are actually non-bakers rolls (delegators)? Wouldn’t that REDUCE the pie of the block rewards because all bakers kept baking, and no baker used his rolls to provide liquidity? Ideally, it would be better that they were all non-baker rolls, so a loss in security does not occur, but then the pie of the block rewards would be reduced?

No. Still the same 40tez/block for fewer people. Those have to go somewhere.

[tezoswakenbake]

Okay, then I was wrong about receiving less pie. Thank you. Now I understand why @murbard told me I was double counting.

The only downside is a possible loss of security due to bakers preferring to provide liquidity than baking and the tzBTC conflict of interest issue.