Governance Transaction Update - November 22, 2024

Announcements
1

Background

  • F-Chains Migration Overview:
    • Ten days ago (Nov 12, 2024), Grove began migrating traffic to new archival-only chains known as F-Chains, identified by chain IDs starting with “F.”
    • This migration caused a sharp drop in Grove’s traffic, namely from paying customers, creating uncertainty about whether it would recover.
  • Incentives to Encourage Adoption:
    • To spur adoption of F-Chains, protocol incentives were adjusted, retaining the baseline inflation at 5%, but at around 187M daily relays (vs. 300m).
    • This incentivized node runners to support the new chains even as Grove’s traffic decreased.
  • Recent Developments (as of Nov 18):
    • F-Chains Adoption Success: All F-Chains were successfully adopted, with unique staking domains (e.g., potentially unique node runners) ranging from as little as 2 to as many as 19 per chain, with an average of 4 across most chains.
    • Traffic Recovery: Grove’s paid traffic began returning, and some customers started load testing the network due to the new chains. Traffic has increased, though its sustainability remains uncertain.
  • Higher Inflation: The increased traffic, combined with the adjusted inflation parameters, resulted in higher inflation rates as Grove sent more traffic through F-Chains.
  • Reason for Adjusting Incentives:
    • While adoption of F-Chains is strong, we at the Foundation want to ensure further traffic recovery while optimizing the protocol’s reward structure
    • Current traffic patterns and adoption data necessitate adjusting parameters
  • Updated Incentive Distribution:
    • DAO: Reduced from 75% to 69% to account for recent high minting from inflation for the DAO. The new target is 500k POKT/day (down from 600k/day).
    • Validators: No change (remains at 2%).
    • Servicers: Increased from 23% to 29% to reward network participants supporting the new chains.
  • Key Adjustments:
    • Baseline Adjustment: New baseline set at ~221M requests/day, reflecting higher traffic levels, and some sustained traffic from Grove.
    • Continued Support for F-Chains: The 20x multiplier on F-Chains remains to encourage further adoption.
    • Removal of Incentives for Non-F-Chains: Incentives for non-F-Chains are eliminated to push node runners and gateways to fully migrate before the Dec 18 deadline when non-F-Chain IDs will be removed.
    • Current Adjustments: RTTM Calculations (November 22, 2024) - Google Sheets
  • Future Adjustments:
    • The next adjustment will be shortly after US Thanksgiving (~10 days from now).
    • After Dec 18, with the old chains will phased out, and adjustments will follow a more methodical and structured approach.

Parameter changes:

pos/DAOAllocation

  • Submitted on Block: 150,944
    Tx Hash: A66B9F6C2C2DA749AFE1A571BC441E552213D6622D8A88D41A7688DDEA0ACFFA
  • Old Value: 75
  • New Value: 69

pos/RelaysToTokensMultiplier

  • Submitted on Block: 150,950
  • Tx Hash: EFFDFF94762BA91284E1CCDB7BBD1F7C4C31AE662ED29D5880C56AE590877A07
  • Old Value: 2242
  • New Value: 404

pos/RelaysToTokensMultiplierMap

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