CIP-10: Solver Rewards Funding (round 2)

This is why I like the “speed premium” concept, people wouldn’t be forced to use it but there’s a risk of not using it, just like there’s a risk of using CowSwap under high volatility (for pairs not very liquid).

Anyway, one of the features I like in CoWSwap is the ability to put multiple orders at once. Meaning people can always make a regular trade (without the “speed premium”) and if the transaction takes to long they can put another one with the “speed premium”. This isn’t an issue if we want to sell more than 50% of a token (it will make the pending order expire, at some point) but if we want to sell less than 50% we can always cancel the pending order first and set a new order with the “speed premium” (or implement some sort of boost/replace pending order).

Whatever the COW Reward is, I do believe Solvers will focus more on settling pairs of trades if they only get 30/35 COW per trade. If they only get 30/35 COW in a batch they probably will focus more on merging the risk of execution into batches with at least 2 or more trades (60/70COW or more). As previously mentioned, Solvers risk increases with the amount of Batches and trade value plus market conditions. My concern now is do Solvers want to settle batches for merely 60/70 COW? So far, no one publicly complained about the 100 COW per batch and while I think they may be fine settling batches for 80 COW (2 trades would be 40COW / trade) I’m not sure if they are willing to go lower??

So far we have 86% for “Per Trade Reward Tier (with trade size tiers)” but the “Do not Cap” is gaining more votes. I suggest we make a quick temp. check for the total allocation for the next 12 months? “12M COW for 12months” Yes/No?
Just to make sure people don’t want the weekly cap but are fine (or not) with the 12M allocation?

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I’m personally against a fixed cap (weekly or yearly). I think we should allocate a fixed amount (12M sounds good) with the goal of it lasting for a certain amount of time. However, if usage or other dynamics change significantly in the next months we should be ready to adjust our strategy.

Is trying a fixed batch reward + a per order reward still something people would be interested in trying? Or should we revamp the payout scheme in a separate CIP?

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Definitely second the opinion of not fixing the weekly rewards for reasons described above. I am intrigued by this cool new idea to have a fixed batch reward of something lower than now plus additional reward for number of trades!

We could even make it so that single order batches get 50 and three order batches get 100

This would be 25 per batch + 25 per trade included.

That way two order batches get 75. Id say the math works out similar to the existing scheme while giving more weight to larger batches.

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An update was added to the top of the original post with nearly concrete decision for the upcoming snapshot. To begin voting this Wednesday, June 15, 2022. Please indicate via the new poll for your preference on the per batch and per trade parameters (B, T). Note that a poll option to keep the values at (100, 0) is also available.

These values were determined with the intention of keeping the total issuance the same as it has been for the first three months of the program - just slightly shifting to acknowledge risk incurred batches with multiple trades.

cc @voyta.eth , @tbosman , @Filius , @prometheus and @fleupold

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Snapshot Vote is Live!

https://snapshot.org/#/cow.eth/proposal/0x5ccfa8fb4ae80d62b35ca83591e9986aae85a3169c10b55d8dd53b33a191fd6b

The proposal has passed and was executed

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