[POLL] What should be the split of mixmining rewards among the layers of the Nym mixnet?

Vote details

:green_circle: Open: 2024-06-21T00:00:00Z2024-07-05T00:00:00Z, or until decided

  • Proposed by: @Nym_team
  • Eligible voters: @Operator
  • Min. quorum: 50% (of node operators who registered on the forum before voting ends)
  • Type: Single majority

Summary

The Nym reward algorithm currently only rewards mix nodes, but not entry or exit gateways. This is going to change so that all participants in the active set - whether acting as mix node, entry or exit gateway - are rewarded for their crucial work.

From client to destination, the active set will now have five rewarded layers to include both gateways and mix nodes:

Layer 1 - entry gateway
Layer 2 - mix node 1
Layer 3 - mix node 2
Layer 4 - mix node 3
Layer 5 - exit gateway

If you opt to run both in gateway and mix node modes, your node may be selected to do work in in any of these five layers for each epoch. Operating gateways, particularly exit gateways, may come with operational risks in some regions. Therefore, your votes below answer the following underlying question:

How much premium should exit gateways receive over mix nodes and entry gateways to compensate for their operational risk?

Mix nodes, entry gateways and exit gateways are all equally crucial for the success of the network, and by extension for the success of you, the operators. Therefore, establishing the right incentive for the community to operate enough exit gateways is crucial.

Further information

This post contains a simplified explanation of the rewards algorithm. Before you vote on the two proposals below, I highly recommend reading the detailed explanation and watching the community call dedicated to this topic with Claudia Diaz (Nym Chief Scientist) and Igor Smirnov (Technical Delivery Lead).

Proposal 1 - 2-hop traffic

Choose the reward split for entry gateways and exit gateways. The split simply determines the premium for the exit vs the entry.

  • entry gateway 40% - exit gateway 60%
  • entry gateway 33% - exit gateway 67%
0 voters

Proposal 2 - 5-hop traffic

Choose the reward split between entry gateways, mix nodes and exit gateways.

  • The first two options give entry gateways a higher premium to recognize that they do additional work compared to mix nodes (checking credentials and maintaining client connection state), while exit gateways receive a premium for the additional risk they might face legally as they interface with the clearnet.
  • The 3rd and 4th options treat entry gateways the same as mix nodes and only provide a premium to exits.
  • Split: 20-16-16-16-32
    Layer 1 - entry gateway: 20%
    Layer 2 - mix node 1: 16%
    Layer 3 - mix node 2: 16%
    Layer 4 - mix node 3: 16%
    Layer 5 - exit gateway: 32%
  • Split: 20-15-15-15-35
    Layer 1 - entry gateway: 20%
    Layer 2 - mix node 1: 15%
    Layer 3 - mix node 2: 15%
    Layer 4 - mix node 3: 15%
    Layer 5 - exit gateway: 35%
  • Split: 17-17-17-17-32
    Layer 1 - entry gateway: 17%
    Layer 2 - mix node 1: 17%
    Layer 3 - mix node 2: 17%
    Layer 4 - mix node 3: 17%
    Layer 5 - exit gateway: 32%
  • Split 16-16-16-16-36
    Layer 1 - entry gateway: 16%
    Layer 2 - mix node 1: 16%
    Layer 3 - mix node 2: 16%
    Layer 4 - mix node 3: 16%
    Layer 5 - exit gateway: 36%
0 voters

You can change your vote any time, until the topic is closed. Once voting closes you will not be able to change your vote.

1 Like

Please don’t forget to vote on both proposals! :slight_smile:

2 Likes

Aaand voted. For GWs rewards, are rewards going to be implement at the smart contract level and sent directly to the wallet from which a particular GW has been bonded?

Also, will all GWs receive rewards or will only specific GWs (selected as part of the reward programme etc)?

1 Like

Thank you Mr Smith, great questions! Basically, going forward there will not be separate gateway nodes. There will only be Nym nodes, which can opt in to be gateways as well. This is what we’ve been calling Project Smoosh.

If a node opts in, instead of 3 layers, this node can be selected for 5 layers for every epoch (as listed in the post above). For epochs when a node is acting as a gateway, rewards may be different, depending on the results of this vote.

Besides that however, rewards will work the exact same way you are already used to. Which also means that, yes, all of this will be implemented in the mix mining contract. See it as an update to the existing rewards algo. And lastly, yes, all epochs when your node acts as a gateway will be rewarded accordingly, for all nodes :slight_smile:

1 Like

I just can’t simply vote on what everyone’s wants :smiley: forever against the crowd

1 Like

Voted! Excited for the results…

2 Likes

Voted, important step forward

2 Likes

Voted. I hope this will ultimately lead to a fair distribution of rewards, taking into account the risks assumed by the exit gateway operators.

3 Likes

maxi profits for exit gateway operators

2 Likes