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Dynamic Gas Rewards #4
As gas prices change and rewards remain constant it will be hard to balance the crypto-economics of incentivizing relayers to submit meta transactions.
Detect Gas Used
Can we detect the amount of gas used for the full transaction on-chain and let the publisher pay this back exactly up to some limit?
Gas Price Oracles
Oracles could provide gas informations and reward according to current gas prices.
Dynamic Gas Token
Could a token be pinned to gas prices and used to pay the relayer back just the right amount to make it worth it to them to submit. Could a GasToken.io be unwrapped on-chain to pay for it?
referenced this issue
Sep 14, 2018
Just fleshing out this problem...
A service node (SN) is rewarded X amount of tokens to execute an meta-tx with a gas cost of Y.
X reward > Y cost ~ At the very least for SNs to be incentivised to execute the transaction. This may be measured in fiat $ value or the utility in respective to the individual/org running the SN (as it is all dependant on the perception of what is more valuable).
We can potentially assume that the SN will always price the reward of their service to an amount that outweighs the cost of gas. As cost of gas fluctuates, absolute cost of reward will change along with it.
Relevant video from Chronologic that talks about how to price the execution of the meta-txs: https://www.youtube.com/watch?v=jf64HVgrh6I
FIXED GAS PRICE Set by the scheduler at the time of scheduling
• Pros • Simple • Protects from TimeNode withholding • Cons • Fails on spikes • Gas price guessing
RANGE GAS PRICE Minimum and maximum gas price.
• Pros • Incentivizes TimeNodes to pick correct price within bounds • Protects from TimeNode withholding • Cons • Given the front-running, the equilibrium is max • Requires a decently high max in order to cover the spikes
MINIMUM (FLOATING) GAS PRICE Minimum gas price is set, higher prices covered by the TimeNode.
• Pros • Allows the TimeNode to decide where the equilibrium is • Protects from TimeNode withholding • Cons • Covers spikes up to minimum reimbursement + reward
More indepth article on that ^^ https://blog.chronologic.network/how-to-picking-the-right-gas-price-for-scheduled-transactions-94e740328ec9
I have been discussing this issue with Pocket Network.
You want the payout to ideally equal or approximate as close as possible the true utility provided as per mechanism design. This is hard to do with a volatile token or gas price, and the solutions proposed here look suboptimal. If the token or gas price is stable, like a stable coin like DAI or HAVVEN. (I think I prefer the latter model where a token is issued against a distributed pool of assets, rather than using on-chain governance and collaterilized loans), you can have a relatively stable reward.) (Note that a stable coin can still fluctuate in value, e.g. DAI and HAVVEN are pegged to USD, which is still volatile, just a lot less than volatile cryptocurrencies. The more widely the pool of assets is that the token is issued against, the better the diversification and Sharpe ratio of the pool/token.)
Pegging a token to the gas price also in particular seems to warrant further investigation, but you will need to use an oracle like Etherscan and probably use the median gas price, given that at any instant you could have very high gas price transactions and very low ones and everything in between. Implementing a decentralized oracle then becomes important. And using a gas token like with gastoken.io to arbitrage the price by creating junk transactions to fill and unfill storage is not an ideal solution for storage pricing economics, but it is probably better than the status quo.