We recently issued a holiday grain bonus and then swapped our Grain distribution policy to be 100% through the “BALANCED” policy. This had an unintended effect on the new distributions. The balanced policy tries to ensure that everyone is paid the same amount of Grain per Cred regardless of when they earned their Cred. Thus, since we just made a big distribution to recent participants via the bonus, the balanced policy saw that everyone who didn’t get much Grain in the bonus is now “underpaid”, and shifted most of the resources towards paying them:
Of this distribution, at least 2/3rds is flowing to people who are not very active in recent months.
As discussed in Adding a Grain "Salary Cap", right now our Grain distributions serve a “salary-like” role, rewarding people for their ongoing contributions. We have scarce capital, and it makes most sense to invest that in supporting our current contributors. Thus, I propose switching over to fully using the “RECENT” policy for the time being. Using a decay factor of 0.16, here are the results:
With a decay of 0.16, we distribute 50% of the reward based on the last month, 25% based on the month after that, 12.5% on the month after that, and so forth. It’s nice to reason about.
My proposal as TBD is the following:
- For now, we switch to the RECENT rather than BALANCED policy, at a rate of 15,000 Grain per week
- When the new “more balanced” allocation policy is ready, we turn that one on, distributing at a rate of 10,000 Grain per week.
The result is that we’ll still be distributing 25,000 Grain per week, but it will focus on rewarding active contributors more, and the “balanced” catchups will be less extreme.
As TBD, this is my decision, but I welcome comments before committing. For now, this weeks Grain distribution is paused pending discussion. I intend to canonicalize whatever policy we choose by Friday, so that we won’t skip the week’s Grain distribution (it’ll just be a bit delayed).