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Reward Socialization

Given that validators are free to determine commission rates, delegating to validator A does not provide the same rewards over period T as an equal delegation to validator B. To ensure fungibility across validators, we must be able to treat all delegations as equal. To achieve this, we must socialize rewards such that all qAsset holders will receive the same Asset rewards (that is, the collective Asset/qAsset redemption rate will increase) as one other, regardless of the validators with whom they choose to delegate.
However, we do look to delegators to signal the validator with whom their portion of the managed Assets should be delegated. Quicksilver should not determine which validators receive what percentage of delegations via the Quicksilver protocol; this should be directed by users as if they were delegating directly.

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Signalling Intent

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Risk Socialization

Last modified 5mo ago