| Author | Andrey Andreev <[email protected] > |
|---|---|
| Last update | 2019-09-03 |
Abstract
We propose to limit the validity period of leases - every lease will be cancelled a certain number of blocks after the beginning of this lease.
Motivation and Purposes
Waves is PoS blockchain which implies that investors are actively involved into network governance. With leasing mechanism it means that leasers should control generator’s (pools) behavior. In case pools do something wrong (skip their blocks, do not maintain their nodes or vote against their declared decisions) leasers should cancel leasing and switch to another pool.
Generators should compete for leaser’s loyalty offering adequate level of rewards and service.
Responsible leasers actively monitor what happens and may switch to another leasing pool in case their current pool does something wrong. In general the more responsible leasers we have the safer and more community-driven our network becomes.
Leasing ability was introduced in Waves Platform more than two years ago. For such a long period of time in the lease could remain the funds of users who have lost access to their wallets. In such a situation, miners can do whatever they want with the funds received in leasing that will remain with them forever. This does not motivate the miners to be responsible and honest.
If a reward for block generation is introduced, the issue will become more acute. Miners’ income will increase, which will lead to increased competition for investors. Responsible investors will be able to allocate their funds more profitably.
We propose to improve our leasing mechanics by introducing leasing validity period. Once leasing is made it will stay valid for 1M blocks (~2 years) and than should be renewed by the leaser or it will be cancelled automatically otherwise.
Specification
The maximum lease term (T) shall be established.
Each block should be checked for age of not canceled lease transactions. If a transaction has been placed in the blockchain at H0 and the current height (H1) is higher by T (H1 - H0 >= T), then the leasing should be cancelled.
Cancelled leases shall not be taken into account in determining the generating balance of miners.
Designations used
| Designation | Value | Description |
|---|---|---|
| T | 1M blocks | the maximum lease term |
| H0 | The value is set for each lease transaction | height of “Lease transaction” in blockchain |
| H1 | The value is determined at the time of checking the lease term | The current height of the blockchain |
Rationale
At the moment, about 43.6M WAVES are leased.
Of these, more than 1M blocks were leased back to 6,949,004 WAVES, which is 15.94%.
However, more than 1M blocks ago, only 6,378,017 WAVES were leased to current miners, and the remaining 570,987 WAVES (1.31%) do not support the network.
The automatic cancellation of leases will reduce the influence of miners whose generating balance consists of leases older than 1M blocks, which motivates miners to create an enabling environment to attract new investors or retain current ones.
