Standard Dev MSC Distribution Rate Algorithm #13
Conversation
2. Standard Distribution Rate Algorithm: The distribution of "Dev MSC", mirrors the amount of Dev MSC generated each 30.41 days. Further more these Dev MSC are distributed in proportion to the amount of BTC won by participants in Mastercoin development bounties completed during that 30.41 day period. The intension being, that the Mastercoin Foundation will handle this distribution process temporarilly until its operation can be transferred to the Mastercoin community via the Distributed Bounty system and the Proof of Stake concensus mechanism. During the temporary period of the Mastercoin Foudnation distributing the Dev MSC 50% of the normal distribution rate shall apply. When the Mastercoin community begins handling the Distribution of the Dev MSC all undistributed Dev MSC from the pervious period shall be transferred to the Decentralized system and concensus must be reached on the standard distribution rate algorithm for the new period going forward. Simple Dev MSC Distribution Equation: A / B = C * D = E (A) Amount of awards an individual earns in BTC during a 30.41 day period, divided by, (B) the total amount of BTC awarded during that 30.41 day period, equals (C) his or her individual award percentage, times (D) the total Dev MSC generated during that 30.41 day period, equals (E) the amount of Dev MSC awarded to the individual in addition to his BTC awards during the 30.41 day period. Example #1 (using round numbers): A (100 BTC) / B (1,000 BTC) = C (10%) * D (1,000 MSC) = E (100 MSC) There are 56,316 Dev MSC that will ever be generated. 28,158 Dev MSC will be generated the first year or 2,346 MSC each 30.41 day period. So if a developer won 10% of the bounties during this 30.41 day period he or she would be distributed 234.6 Dev MSC.
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To be clear this proposal does not effect in any way the existing commitments made to the Mastercoin Foundation Role Based Bounty Developers or those Developers participating in the Distributed Exchange Bounty. See J.R.'s detailed proposal on Dev MSC below. This pull request is meant to reflect his proposal and the community consensus on establishing a Standard Distribution Algorithm for Dev MSC: Quote from J.R. Currently the plan is for 50% of all dev mastercoins to be paid out in this way as they become available, with the rest saved for future use as needed. I'd like to propose that any time we award the dev Mastercoins any time we award a milestone-based bounty, starting with the current 300BTC bounty. If we don't, our role-based people will have HUGE variance from one month to the next. This will also make sure everyone pulls together to get to the next milestone, rather than full-time employees having a perverse incentive because they get paid more if the milestone is NOT reached in the current month. Since Exodus, ~10000 dev MSC have become available (of which we gave away 1500). Half of the released coins is 5000 MSC, currently worth over $500k. I propose that we give all that away when the 300 BTC bounty is paid out proportional to all BTC bounties paid so far, including the $25k coding contest, the 300 BTC coding contest, and all BTC paid out to full-time people (calculation should include partial months for them). I spoke to Ron this morning, and we are in agreement that future milestone-bounties should be smaller in scope and more frequent. When we hit the next milestone, we'd pay out 50% of any MSC released since the last payout. Please let me know if anybody disagrees with this approach. I'd like to update the RBB document to reflect these clarifications, and change the pay-period from bi-weekly to monthly." |
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I've gotten notes from J.R. on how he thinks this can be best implemented. After the current Distributed Exchange Bounty is paid out. I'm in full agreement. Please let me know if there are other objections before merging. |
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I would at least like an advance of 5 dev MSC on jan 1st since I need at https://bitcointalk.org/index.php?topic=377576.0;topicseen And I need 2 MSC for the blogging contest, I committed to 4 blogs at 0.5 Plus I wanted to try out a micro giveaway with the other 2 dev MSC and a |
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Zynis, |
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When calculating (on the first of each month once we start doing this), will it be a problem if I just use 50% of the amount of MSC generated since the last payout rather than 30.41 days? It's basically the same process, and each month will have less dev MSC anyway due to the continuous nature of the formula . . . |
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P.S. Somebody else will probably have to merge this pull request, since I'm going offline for the next 2 weeks. |
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I would merge it, but I made the request and I don't see that as a best practice. So I'll wait for Ron Gross to review and merge. |
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@dacoinminster I think the two forms of payment are equivalent, this sounds fine. I'm merging the pull request now. |
Standard Dev MSC Distribution Rate Algorithm
After much discussion on the forums and the holding of a community poll 73.5% agreed that a "Standard Dev MSC Distribution Rate Algorithm" should be added to the Master Protocol Spec and that the Distribution Algorithm should take the form as described below.
Link to back ground and context: https://bitcointalk.org/index.php?topic=348028.0
Summary of Additional Distribution Rate language for the Spec.
Simple Dev MSC Distribution Equation: A / B = C * D = E
(A) Amount of awards an individual earns in BTC during a 30.41 day period, divided by,
(B) the total amount of BTC awarded during that 30.41 day period, equals
(C) his or her individual award percentage, times
(D) the total Dev MSC generated during that 30.41 day period, equals
(E) the amount of Dev MSC awarded to the individual in addition to his BTC awards during the 30.41 day period.
Example #1 (using round numbers):
A (100 BTC) / B (1,000 BTC) = C (10%) * D (1,000 MSC) = E (100 MSC)
There are 56,316 Dev MSC that will ever be generated.
28,158 Dev MSC will be generated the first year or 2,346 MSC each 30.41 day period.
So if a developer won 10% of the bounties during this 30.41 day period he or she would be distributed 234.6 Dev MSC.