AIP 22: Smooth Points Distribution

This proposal captures a community discussion from https://chat.airswap.io/

Summary

AirSwap protocol fees are continuously pooled and periodically withdrawn by contributors using points. Today, points are distributed “all at once” at the completion of a vote, creating a “rush” to claim. This proposal aims to instead distribute points over time to ease pressure.

Specification

Including a timestamp on each claim enables smooth distributions. Upon executing a claim, the pool checks the time passed since the timestamp to determine the % of points available and uses that value to execute the claim.

AVAILABLE = REWARD × ((CURRENT - TIMESTAMP) / DURATION)

For example, a contributor has earned 100 points to be distributed over 5 days. At any time over that duration they can use points proportional to the amount of time passed. This creates a continuous stream of points for regular contributors.

Rationale

Points are a simple and flexible approach to rewarding AirSwap contributors for arbitrary tasks. The system can be improved by easing the pressure that exists when earning points, making for a better contributor experience overall.

Copyright

All proposals are public domain via CC0.

1 Like

While I like the idea of this AIP, I wonder if it might make things too complicated. I forsee a lot of people asking questions like “Where are my points!?” Or even worse, people not knowing that they are getting a vesting schedule for their points, immediately assume their first batch is the total. They may think “What?? That is it?? AirSwap sucks!”

I think if there were a number of explanations & warnings on the Activate page, much of this “rush” could be alleviated. For example, explaining that points don’t expire, and that a claim can take place at any time. Suggesting multiple strategies like:
“Some sAST holders like to claim as soon as they get their points, rushing to beat out everyone else to their favorite pools.”
“Other sAST holders prefer to wait until right before the next vote concludes, thereby claiming the maximum pool when there is the minimum activity.”

I think this is a scenario where KISS (keep it simple stupid) applies, and the easiest solution is likely the best first step.

I believe Duration has to be the same timespan as the voting cycle to completely eliminate the rush and to truly make the point stream continuous.
When choosing for example 5 days, there would still be a rush after the vesting has reached 100%

This would also be in line with justins comment about keeping it simple and easy to explain for potential newcomers. “Points are distributed every day, as long as you vote and stake”

The coordinators think this is interesting but shouldn’t be a focus area at the moment. Let see how the rewards system functions for a few more months. If we find there are serious deficiencies then we can revisit this and some other ideas. @don to change status to deferred.