Sword Method–Enter Elastos’ Reward Mechanism
It’s been a while since the Sword Method made its first appearance. The topic of how DPoS rewards get distributed amongst Delegates and Voters is important, and we want to add additional information to the previous article featured here:
It is our hope that other supernodes adopt this model as well because the full potential of the Sword Method is demonstrated when the voter’s 36 supernodes have adopted it.
Today, we would like to explain the range of the Sword Method from another point of view. As explained in our prior article, the Sword Range displays Delegate ELA rewards vs Voter ELA rewards.
This graph should help readers better understand the influence that our base ratio adjustments have on gains for Voters compared to Delegates. The gains for the Voters are from their elected 36 supernodes, and this graph assumes they’ve all adopted the Sword Method; therefore, these values should be seen as mean values.
As you can see in figure 1, every time a Voter’s rewards drops to 33% of a Delegate’s rewards, a base ratio adjustment happens. After the base ratio adjustment, the Voter gains 67% of a Delegate’s Rewards.
You may realize that, especially during the early stages of voting, until we reach 270,000 votes, a Voter could actually gain more than the Delegate.
Now let’s have a look at a different method, where the initial base ratio of 40/60 is fixed and never changes (figure 2)
As the base ratio never gets adjusted in favor of the Voters, the Voter’s rewards–as more votes are cast–are smaller and smaller compared to a Delegate.
That is why we from Enter Elastos have championed this method of rewards for the community so that we can all grow together in a sustainable way.