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feat: implement effective delegation shares #4

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@atheeshp atheeshp commented Nov 12, 2024

Description

This proposal for the Cosmos SDK suggests modifying the staking rewards distribution to account for liquidity risk by differentiating between locked (vesting) and unlocked tokens. The proposed "VestingRewardMultiplier" (VRM) parameter adjusts rewards for locked tokens, allowing stakers who contribute more liquid (unlocked) tokens to earn higher rewards. By setting VRM between 0 and 1 (used 0.3 in this POC), Cosmos can gradually shift reward distribution, potentially incentivizing more liquid staking and aligning network incentives. Considerations include user fairness, computational efficiency, and a smooth migration path for current delegations.

ref: Proposal: Adjusted Staking Rewards Distribution in Cosmos SDK #22001


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@atheeshp atheeshp changed the title Ap/refactor vesting delegations updated feat: implement effective delegation shares #2 Nov 12, 2024
@atheeshp atheeshp changed the title feat: implement effective delegation shares #2 feat: implement effective delegation shares Nov 12, 2024
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